Hyatt Hotels Corp. said Monday (Aug. 16) it plans to acquire luxury resort-management services, travel and hospitality company Apple Leisure Group (ALG) from affiliates of KKR and KSL Capital Partners LLC for $2.7 billion in cash.
The deal — which also includes ALG membership affiliate Unlimited Vacation Club, travel distribution company ALG Vacations and destination management services and travel technology assets — is expected to be finalized in the fourth quarter of this year, subject to customary closing conditions.
The addition of ALG doubles Hyatt’s global resorts footprint, said Mark Hoplamazian, president and CEO of Hyatt, in the joint announcement. ALG’s hotel portfolio includes more than 33,000 rooms at about 100 properties in 10 countries.
Meanwhile, online booking platform Airbnb beat Wall Street estimates last week, reporting nights and experiences booked surged 197 percent year on year to 83.1 million, according to its second-quarter earnings letter.
Airbnb’s total gross bookings for the second quarter of 2021 came in at $13.4 billion, up 320 percent year over year, a tally that is 37 percent above the 2019 levels. Revenues for the second quarter were up 299 percent to $1.3 billion; revenues were also 10 percent higher than the second quarter in 2019.
In its letter, Airbnb said the continued impact of COVID-19 and its Delta variant will continue to keep volatility in the mix.
“In Q3, we are starting to see the global spread of COVID variants, a patchwork of local travel restrictions and slowing vaccinations adversely impact cancellations and growth of nights and experiences booked,” the Airbnb letter noted. “As a result, while we expect nights and experiences booked in Q3 2021 to significantly outperform Q3 2020, we expect nights and experiences booked to come down from Q2 and remain below Q3 2019 levels.
Airbnb added that the company does not yet know how willing people will be to travel in the fall as compared to the summer.