We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hyatt (H) Plans to Acquire Apple Leisure Group for $2.7B
Read MoreHide Full Article
Hyatt Hotels Corporation (H - Free Report) entered into a definitive agreement with affiliates of KKR and KSL Capital Partners, LLC to acquire Apple Leisure Group for $2.7 billion. However, the transaction is subject to regulatory approvals and is likely to be sealed by the fourth quarter of 2021.
The transaction will enable Hyatt to integrate Apple Leisure Group properties as well as boost its presence in new and existing markets. It also includes integration of Apple Leisure Group’s membership offering (Unlimited Vacation Club), travel distribution business (ALG Vacations), as well as destination management services and travel technology assets.
Acquisition Synergies
Hyatt is strongly invested in the strategies related to various acquisitions and divestitures that can drive growth for the company. Case in point, the acquisition facilitates the addition of approximately 100 hotels to its portfolio along with a pipeline of 24 executed deals in Europe and the Americas. With this transaction, the company will double its global resort footprint and will expand its European footprint by 60%. The acquisition will extend Hyatt’s brand footprint into 11 new European markets. Moreover, Hyatt will be working on expanded offerings and unique loyalty benefits for the combined companies' high-end guest and customer base.
Meanwhile, the company is optimistic with respect to Apple Leisure Group’s asset-light business. With committed sale of additional $2 billion of hotel assets (by 2024), the company anticipates significant increase in the percentage of revenues and earnings generated from fees. The company stated that the combination of this value-creating acquisition along with an increase in its asset sale commitment will transform its earnings profile, thereby paving path for 80% fee-based earnings by 2024-end. Going forward, the company anticipates to achieve its commitment to sell $1.5 billion of hotel real estate (in 2021), which will result in more than $3 billion of proceeds from asset-sale strategy.
Image Source: Zacks Investment Research
In the past year, shares of Hyatt have gained 31.9% in the past year compared with the industry’s 27.2% growth.
Image: Bigstock
Hyatt (H) Plans to Acquire Apple Leisure Group for $2.7B
Hyatt Hotels Corporation (H - Free Report) entered into a definitive agreement with affiliates of KKR and KSL Capital Partners, LLC to acquire Apple Leisure Group for $2.7 billion. However, the transaction is subject to regulatory approvals and is likely to be sealed by the fourth quarter of 2021.
The transaction will enable Hyatt to integrate Apple Leisure Group properties as well as boost its presence in new and existing markets. It also includes integration of Apple Leisure Group’s membership offering (Unlimited Vacation Club), travel distribution business (ALG Vacations), as well as destination management services and travel technology assets.
Acquisition Synergies
Hyatt is strongly invested in the strategies related to various acquisitions and divestitures that can drive growth for the company. Case in point, the acquisition facilitates the addition of approximately 100 hotels to its portfolio along with a pipeline of 24 executed deals in Europe and the Americas. With this transaction, the company will double its global resort footprint and will expand its European footprint by 60%. The acquisition will extend Hyatt’s brand footprint into 11 new European markets. Moreover, Hyatt will be working on expanded offerings and unique loyalty benefits for the combined companies' high-end guest and customer base.
Meanwhile, the company is optimistic with respect to Apple Leisure Group’s asset-light business. With committed sale of additional $2 billion of hotel assets (by 2024), the company anticipates significant increase in the percentage of revenues and earnings generated from fees. The company stated that the combination of this value-creating acquisition along with an increase in its asset sale commitment will transform its earnings profile, thereby paving path for 80% fee-based earnings by 2024-end. Going forward, the company anticipates to achieve its commitment to sell $1.5 billion of hotel real estate (in 2021), which will result in more than $3 billion of proceeds from asset-sale strategy.
Image Source: Zacks Investment Research
In the past year, shares of Hyatt have gained 31.9% in the past year compared with the industry’s 27.2% growth.
Hyatt, which shares space with Choice Hotels (CHH - Free Report) , Marriott International, Inc. (MAR - Free Report) and Hilton Worldwide Holdings Inc. (HLT - Free Report) in the Zacks Hotels and Motels industry, currently carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.