Aug 15 - U.S. hotel operator KSL Capital Partners said on Sunday it entered a deal to buy in the resort company Apple Leisure Group from private equity investor KKR Co and travel broker KKR Corporation for $2.7 billion.
Bain Capital purchased the Pennsylvania-based resort operator from KKR and KSL for an undisclosed price in 2017.
The purchase of Apple Leisure Group's asset-light business will increase the percentage of revenues and earnings Hyatt will generate from fees, Hyatt said in a statement.
The hotel operator said it anticipates fulfilling its current commitment to sell $1.5 billion in hotel real estate in 2021 and is further committed to an additional $2 billion in proceeds from the sale of hotel real estate by the end of 2024.
Hyatt said it expects to fund more than 80% of the buying with a combination of $100 million of cash on hand and new debt financings, and the remainder with about $500 million from equity financing. It added that JP Morgan secured a $1.7 billion to Hyatt, creating a non-bank financing commitment by Hyatt.
Cash proceeds from the $2.2 billion asset sale program are expected to be used for repaying debt, including debt incurred to fund the acquisition, Hyatt said, adding that the deal is anticipated to close in the fourth quarter of 2021.
After the completion of the transaction, Hyatt will double its global resort footprint, the statement added.
Apple Leisure Group and KKR did not immediately respond to a request for comment.