BUSINESS TRAVEL

Hyatt to Acquire Apple Leisure Group, Expanding Global Brand Presence in Luxury Leisure Travel

Hyatt Hotels Corporation | August 16, 2021

Hyatt Hotels Corporation today announced that Hyatt has entered into a definitive agreement to acquire Apple Leisure Group (ALG), a leading luxury resort-management services, travel and hospitality group, from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash. The transaction is anticipated to close in the fourth quarter of 2021, subject to customary closing conditions.

ALG’s resort brand management platform AMResorts® provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas under the AMRTM Collection brand portfolio, including well-known brands Secrets® Resorts & Spa, Dreams® Resorts & Spas, Breathless® Resorts & Spas and Zoëtry® Wellness & Spa Resorts as well as the fast-growing Alua® Hotels & Resorts brand, which is expanding in European leisure destinations. The acquisition also includes ALG’s membership offering, Unlimited Vacation Club®, travel distribution business ALG Vacations®, as well as destination management services and travel technology assets. Following the completion of the transaction, ALG’s business will continue to be led by current ALG CEO Alejandro Reynal and the current ALG leadership team. Mr. Reynal will become a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian.

“With the asset-light acquisition of Apple Leisure Group, we are thrilled to bring a highly desirable independent resort management platform into the Hyatt family,” said Mark Hoplamazian, president and chief executive officer, Hyatt. “The addition of ALG’s properties will immediately double Hyatt’s global resorts footprint. ALG’s portfolio of luxury brands, leadership in the all-inclusive segment and large pipeline of new resorts will extend our reach in existing and new markets, including in Europe, and further accelerate our industry-leading net rooms growth. Importantly, the combination of this value-creating acquisition and the $2 billion increase in our asset sale commitment will transform our earnings profile, and we expect Hyatt to reach 80% fee-based earnings by the end of 2024.”

ALG’s hotel portfolio consists of over 33,000 rooms operating in 10 countries. The portfolio has grown from nine resorts in 2007 to approximately 100 properties by the end of 2021 and has a pipeline of 24 executed deals with a large number of additional hotels in the development process. ALG’s Unlimited Vacation Club® is an exclusive travel club whose participants enjoy preferred rates and other benefits at AMR™ Collection properties. With over 110,000 members, Unlimited Vacation Club® membership has grown at a compounded annual growth rate of 18% over the last five years.

“Combining Hyatt’s deep expertise and global brand footprint with ALG’s strong resort brands, operating capabilities and robust development plans will elevate our differentiated position and create a leader in luxury leisure travel,” said Alejandro Reynal, chief executive officer, Apple Leisure Group. “On behalf of everyone at ALG, I am grateful to our partners at KKR and KSL who supported us in building the platform into what it is today. I am excited to have our team join the Hyatt family and I anticipate a robust growth journey ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travelers around the world.”

“Today is a great milestone in what has been a story of growth, resilience, and dedication to world-class leisure experiences by an outstanding team at Apple Leisure Group,” said Chris Harrington and Rich Weissman, partners at KKR and KSL Capital Partners, respectively. “There is simply no better home for ALG to continue on its growth trajectory than being part of Hyatt.”

Hyatt to Discuss Transaction on Webcast Scheduled for Monday, August 16 at 7:30 a.m. CDT

Spotlight

Are Travel & Hospitality brands getting it right on social? Are they keeping pace with their customers’ expectations? Lithium commissioned a study of how Travel & Hospitality brands engage across their social ecosystem to find out.

Spotlight

Are Travel & Hospitality brands getting it right on social? Are they keeping pace with their customers’ expectations? Lithium commissioned a study of how Travel & Hospitality brands engage across their social ecosystem to find out.

Related News

COMMERCIAL TRAVEL

Priceline Introduces Summer Sale and Expanded Loyalty Program

Priceline | June 20, 2022

Priceline is launching its Summer Sale on June 20 to help travelers save on summer vacations. It shared the most affordable destination for the 4th of July holiday. In addition, it has also expanded its VIP Loyalty program called VIP Family. "This summer, the travel industry is experiencing a significant boom, and we want to help ensure that our customers are getting the best deals, despite current economic stressors like inflation With our everyday deals, Summer Sale and VIP program we're helping fight back against inflation to make travel more affordable and accessible." -Brett Keller, CEO of Priceline With the VIP Family program, travelers can access savings three times faster. VIP members save 50% more than non-members on hotels. They can also get access to exclusive discounts, coupons and travel perks. The program is free, and all the travelers need to do is sign up to enjoy the benefits. Each member gets a private account, and three users can pool their status by creating a VIP Family. Individual family members’ completed trip totals are tallied into one status level so that the families can attain a higher status and unlock more benefits faster. The higher the status, the more the members can save. For the Fourth of July getaway, Priceline has offered the following deals: Domestic Dallas, Texas ($133) Houston, Texas ($135) Bloomington, Minnesota ($135) Charlotte, North Carolina ($148) Kissimmee, Florida ($151) International Calgary, Canada ($127) Milan, Italy ($145) Prague, Czech Republic ($146) Istanbul, Turkey ($147) Athens, Greece ($154) As a part of the Summer Sale, Priceline has these deals: Save $20 on Express Deals® hotels when spending at least $125. Code: SUMMER2022 Dates: June 20 to June 28 Save $100 on Express Deals® hotels when spending at least $500. Code: SUMMER100 Dates: From June 29 to July 4

Read More

TRAVEL TECHNOLOGY

Optii Solutions Adds Multiple New Languages to Its Platform

Optii Solutions | August 04, 2022

Optii Solutions, the leading hotel operations software, announced that it has added multiple new languages to its platform, to further support its European expansion. Several additional languages are also in development with release dates in the next 30 to 60 days. With travel, tourism, and hospitality drawing a particularly diverse workforce from around the world, the need to seamlessly communicate across languages and avoid errors is critical. Optii is designed to break down gaps and lags in communication with the goal of increasing productivity and establishing a repeatable and scalable guest experience within a hotel. Language barriers can disrupt the gains hotel operations would otherwise achieve from the implementation of technology, because instructions or staff communication is missed or misunderstood. Seamless translation to 20 languages within the same technology platform avoids this. It also leads to a better work experience for the staff who can choose to work in the language they are most comfortable with. The company has for some time supported core languages that are prevalent in the industry and workforce, but with shifting demographics, the need to add more languages is critical. This has proven true especially in the European market, where Optii is expanding with several new hotel group customers. “As we grow into new markets, the make-up of the workforce looks different and we need to account for that. Being a customer-centric technology provider, a lot of our roadmap items come from our customers. This is the case with our latest expansion into several European markets. Not only will we deliver on the customer needs, but we can also play a small part in bringing their workforce together and breaking down barriers.” -Katherine Grass, CEO, Optii Solutions About Optii Solutions Optii Solutions is a hotel operations solution that leverages smarter technologies such as artificial intelligence, analytics, messaging and mobility to improve the efficiency and effectiveness of housekeeping and service delivery departments. For further information, please visit: www.optiisolutions.com

Read More

TRAVEL TECHNOLOGY,AIRLINES AND AIRPORTS

Air Canada and United Airlines Expand Relationship to Make Transborder Travel Easier, With More Choice

Air Canada and United Airlines | July 25, 2022

Air Canada and United Airlines announced a joint business agreement for the Canada-U.S. transborder market, building on their long-standing alliance, that will give more flight options and better flight schedules to customers traveling between the two countries. Customers will be able to connect to 38 codeshare destinations in the U.S. and eight of the most popular cities in Canada — all while enjoying the benefits of the carriers' MileagePlus® and Aeroplan loyalty programs. The agreement will also strengthen and grow both carriers' networks and help accelerate their COVID-19 recovery. United is a world-class airline and we are pleased to significantly expand our well-established partnership to further enhance the customer journey between Canada and the U.S. by offering more choice, greater convenience and an improved airport experience, said Mark Galardo, Senior Vice President of Network Planning and Revenue Management at Air Canada. "This agreement marks a new phase in our evolving relationship that will speed the recovery from the pandemic and strengthen both carriers. It will also enable us to optimize our hubs and schedules and to broaden our global network connectivity to maintain our leadership in the market. "With this new agreement, we are further strengthening our long-standing partnership with Air Canada, As international travel continues to recover, this expanded partnership will provide an enhanced experience for all transborder travel." -Patrick Quayle, Senior Vice President of Global Network Planning and Alliances at United. Customers who search for flights between the U.S. and Canada on United's or Air Canada's websites and apps will find more flight options scheduled at more convenient times. Codeshare between the two carriers will also be expanded and members of both the MileagePlus and Aeroplan programs will have more accrual and redemption options. In 2019, the U.S.-Canada transborder market was the second largest international passenger air transportation market in the world and the largest international market for both Canada and the U.S., as measured by seats. Air Canada and United already cooperate in the transborder market, according to the terms of their existing U.S. antitrust immunity. Under the joint business agreement, subject to compliance with U.S. and Canadian regulatory and antitrust requirements, the two airlines will now be able to, Coordinate their networks and schedules, enabling the carriers to offer customers more choice, including more flights throughout the day and more access to each airline's seat inventory. Enhance codeshare on transborder flights, excluding certain U.S. leisure markets and territories. The carriers anticipate customers will be able to connect to 46 transborder codeshare destinations with more than 400 daily frequencies in 2022 – with opportunities to add more codeshare destinations for domestic routes within Canada and the U.S. Sell seats on each other's transborder flights and share revenue on flights between hub markets (where regulatory authorities and antitrust requirements allow), allowing the carriers to grow their overall capacities. Align customer policies for greater consistency and enable the seamless provision of onboard products, establish airport co-locations where available and provide extra value to each carriers' frequent flyer programs. Allow the two carriers to work closer together to advance their sustainability objectives. The implementation of an expanded partnership builds on the existing close cooperation of the two carriers and previously acquired regulatory approvals. United and Air Canada are also founding members of Star Alliance and a transatlantic joint business agreement with the Lufthansa Group. About Air Canada Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network celebrating its 25th anniversary in 2022. Air Canada provides scheduled passenger service directly to 51 airports in Canada, 51 in the United States and 86 internationally. It is the only international network carrier in North America to receive a Four-Star ranking from Skytrax, which in 2021 gave Air Canada awards for the Best Airline Staff in North America, Best Airline Staff in Canada, Best Business Class Lounge in North America, and an excellence award for managing COVID-19. Through its leading travel loyalty Aeroplan program, Air Canada offers the ability to earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental rewards. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger flights and cargo-only flights with its fleet of Boeing 767-300 freighters. Air Canada has committed to a net zero emissions goal from all global operations by 2050. About United United's shared purpose is "Connecting People. Uniting the World." From our U.S. hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C., United operates the most comprehensive global route network among North American carriers. United is bringing back our customers' favorite destinations and adding new ones on its way to becoming the world's best airline. For more about how to join the United team, please visit www.united.com/careers and more information about the company is at www.united.com. United Airlines Holdings, Inc., the parent company of United Airlines, Inc., is traded on the Nasdaq under the symbol "UAL".

Read More