Hyatt Hotels expands leisure footprint, recognizing it as ‘more resilient’ than business travel


Amid considerations concerning the unfold of the highly-contagious delta variant, Hyatt Hotels is increasing its luxurious lodges and resorts by buying Apple Leisure Group from KKR and KSL Capital Partners.

The firm is putting a guess on leisure travel, pushing its revenues from the section over the 50% mark, from 45%, with business travel making up the remainder of its revenues.

“Leisure was the first segment to return and recover subsequent to most of the downturns in the last 20 years. We obviously have seen a robust recovery in this one,” Mark Hoplamazian, President and CEO of Hyatt, stated in an interview on CNBC’s “Closing Bell” on Monday.

“It’s not a change in strategy, it’s a recognition that leisure is durable and has been resilient.”

The $2.7 billion money deal is anticipated to shut within the fourth quarter of 2021.

The acquisition of the leisure travel and resort model administration firm would add roughly 33,000 rooms throughout 100 lodges to Hyatt’s portfolio.

“We are not underwriting this transaction on what happens in the next four weeks or four months, but rather on what happens farther in the future,” Hoplamazian stated. “We think this is going to be a growing segment.”

This transaction expands the corporate’s European presence by 60%, Hoplamazian stated.

Apple Leisure Group will nonetheless be underneath the management of CEO Alejandro Reynal, who will turn into a member of Hyatt’s govt management crew and report back to Hoplamazian.

Shares of Hyatt Hotels are down 2.28% this 12 months placing its market cap at $7.four billion.



Source link