Move doubles resort portfolio as leisure travel rebounds
Hyatt is betting that people can’t wait to go to their favorite destinations and resorts after border closures shut down most international travel for over a year. The hotel chain will now be the largest operator of luxury resort in the Caribbean and Mexico after striking a $2.7 billion deal to acquire Apple Leisure Group. The deal includes AMResort’s portfolio of Secrets adults-only and Dream family-oriented all-inclusive resorts as well as Zoetry wellness and spa resorts. The Alua Hotels & Resorts portfolio give Hyatt a presence in 11 new markets in Europe.
“The addition of ALG’s properties will immediately double Hyatt’s global resorts footprint. ALG’s portfolio of luxury brands, leadership in the all-inclusive segment and large pipeline of new resorts will extend our reach in existing and new markets, including in Europe,” Hyatt CEO and president Mark Hoplamazian said.
The TSA has routinely been announcing travelers going through security at U.S. airports in numbers not seen since before the COVID-19 pandemic. Mexico and several Caribbean islands either never closed their borders to American leisure travelers or opened them last summer with COVID protocols such as pre-arrival testing in place. The European Union and its member states announced reopenings this spring and summer to jump-start their tourism industries.
Hyatt’s move reflects the fact that leisure travel is sure to outpace business travel as companies look to cut costs by doing as much as they can over video conferencing rather than spending on in-person meetings. Americans who can afford to do so are intent on taking a luxury vacation as soon as possible after a long stretch stuck at home during the pandemic. The acquisition will double Hyatt’s resorts portfolio, a sure sign the company believes the next time its guests break out their passports, it will be for pleasure, not business.