Hyatt Hotels Corporation on Tuesday announced that its $2.7 billion deal to acquire Apple Leisure Group (ALG) is officially complete.
The deal, which was first announced its plans in 2019, doubles Hyatt’s resort footprint, adding another 100 hotels and resorts operating in 10 countries along with a pipeline of 24 executed deals in Europe and the Americas. With the deal, Hyatt will enter 11 new European markets, including Spain, Canary Islands, Balearic Islands, and Greece.
“Today marks the beginning of ALG’s next chapter, in which we will continue to build on the strong loyalty and reputation we have established through our luxury travel brands and services, now as part of Hyatt,” ALG CEO and president Alejandro Reynal said. “We strongly believe we can achieve more together and are excited by the opportunities ahead for our expanded family, including our ALG team members, who are excited to join a larger global organization.”
While there are still more details to come, Hyatt on Tuesday said that Reynal and the current ALG leadership team will remain in place, operating as a distinct business unit within Hyatt, with Reynal joining Hyatt’s executive board.
“Hyatt and ALG have highly complementary brand portfolios and share a deep commitment to colleagues and guest experiences focused on care,” Hyatt president and CEO Mark Hoplamazian said. “We are excited to welcome the ALG team to the Hyatt family, and look forward to working together to achieve new levels of growth and value creation for all stakeholders.”
Hyatt also said that it does plan to integrate AMR Collection into World of Hyatt sometime next year, allowing members to earn and redeem Hyatt points at AMR Collection properties. The company also said it is still determining how to integrate ALG’s Unlimited Vacation Club program into World of Hyatt.
Speaking at ALGV’s Ascend Conference last month, ALGV Group President Ray Snisky said that the deal was a testament to just how big of a segment the all-inclusive space has become.
“Right now, there is an arms race going on in the big box hotels and many of them have slept at the wheel for a long time and looked down at the all-inclusive space,” he said. “That product has just gotten better and better.”
Snisky said he has had five meetings with the CEO of Hyatt, Mark Hoplamazian, who had previously said that the deal represents a large investment in a leisure travel space that Hyatt continues to be bullish on. Snisky said that those meetings has left him “inspired” because “he respects so much of what we’ve accomplished.”