RTTNews | Aug 15, 2021 09:04PM EDT

21:04 Sunday, August 15, 2021 (RTTNews.com) - Hyatt Hotels Corp. (H) said that it agreed to acquire Apple Leisure Group or ALG, a luxury resort-management services, travel and hospitality group, from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash.

Hyatt expects to fund more than 80 percent of the purchase with a combination of $1.0 billion of cash on hand and new debt financings, and the remainder with about $500 million from equity financing.

Hyatt noted that it has secured a $1.7 billion financing commitment from J.P. Morgan. Cash proceeds from the $2 billion asset sale program are expected to be used to pay down debt, including debt incurred to fund the acquisition.

The transaction is anticipated to close in the fourth quarter of 2021.

Upon the completion of the deal, ALG's business will continue to be led by current ALG CEO Alejandro Reynal and the current ALG leadership team. Reynal will become a member of Hyatt's executive leadership team and report to Hyatt CEO Mark Hoplamazian.

Hyatt expects that it will reach 80% fee-based earnings by the end of 2024.

Read the original article on RTTNews ( https://www.rttnews.com/3218858/hyatt-hotels-to-acquire-apple-leisure-group-for-2-7-bln-in-cash.aspx)

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