In an effort to expand its leisure travel offerings, Hyatt Hotels recently announced that it has entered into a deal to purchase Apple Leisure Group for $2.7 billion, according to CNBC News.
As the COVID-19 pandemic continues, the company announced that it completed the deal because it recognized the resilience of leisure travel over the business segment.
“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, said in an interview on CNBC’s “Closing Bell.” “It’s not a change in strategy, it’s a recognition that leisure is durable and has been resilient.”
Hyatt's portfolio will expand by approximately 33,000 rooms across 100 hotels, ballooning the company's European presence by 60%.
“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 added. “We think this is going to be a growing segment.”
Apple Leisure Group CEO Alejandro Reynal will retain his position and report to Hoplamazian.
The $2.7 billion cash deal is expected to close in the fourth quarter of 2021.