Apple Leisure Group plans to buy Hyatt Hotels Corp. for $2.7 billion from its private equity owners.
The deal on the company, which is sold by KSL Capital Partners LLC and travel-and- leisure specialist KKR Co., was announced Sunday after The Wall Street Journal reported it was imminent.
The transaction is the latest sign of optimism about a return to vacation travel even as the U.S. economy continues to grapple with the Coronavirus pandemic. The business of Apple Leisure was weakened by virus-related lockdowns and travel bans last year, but has rebounded as restrictions have loosened.
It would also accelerate Hyatt's transformation, long under way, to a more asset-light business model, focusing on generating an ongoing stream of steady and predictable fees.
Apple Leisure, founded in 1969, manages the Secrets, Dreams and Breathless Resorts Spa chains and sell vacation packages under the brands CheapCaribbean.com and Apple Vacations for next 10 years.
It was founded in Newtown Square, Pa. it also provides airport transfer, tours and excursions and corporate events at a variety of destinations including Mexico and the Caribbean.
Bain Capital bought the company from KKR and KSL for an undisclosed price in 2017. Since then, Apple Leisure has done a number of acquisitions, including agreeing to merge with the Spanish Luxury Hotels operator The Mark Travel Corp. and inking a deal to purchase a majority share in Funjet Vacations in 2018.
New York - KKR manages $ 429 billion across private equity, credit, real estate, infrastructure and insurance. The firm's recent deals include a June agreement to buy software company Cloudera Inc. in a $3 billion deal alongside private equity firm Clayton Dubilier Rice. In April, KKR signed a $5.75 Billion deal to sell Nestl SA (maker of Nature's Bounty vitamins) to Bountiful Co.
With offices in Singapore, Denver, Stamford, London and Denver, KSL focuses exclusively on investing in travel and leisure, including hospitality, recreation, clubs, real estate and tourism services. Since its founding in 2005, the firm raised more than $15 billion in capital to raise debt and equity money.