On Sunday, U.S. hotel operator Hyatt Hotels Corp said it entered a deal to purchase Resort Company Apple Leisure group from its private-equity owner KKR and Co and travel-and-leisure expert KSL Capital Partners for $2.7 billion in real money.
In 2017, KKR and KSL purchased the Pennsylvania-based resort operator from Bain Capital at an undisclosed price.
The acquisition of Apple Leisure Group’s resource light business will expand the level of income and profit Hyatt will get from fees, Hyatt said in a statement.
The hotel operator said it anticipates fulfilling its current obligation to sell $1.5 billion of hotel real estate in 2021 and is further focusing on an extra $2 billion in proceeds from the hotel real estate before the end of 2024.
Hyatt said it hopes to fund over 80% of the acquisition with a blend of $1 billion from cash holdings and new debt financing, and the rest of about $500 million from equity financing. It added that Hyatt has gotten a $1.7 billion funding deal from JP Morgan.
Cash inflows from the $2 billion asset sale program are relied upon to be utilized to settle debt, including debt brought about to fund the acquisition, Hyatt said, adding that the deal is expected to end in the last quarter of 2021.
After the completion of the arrangement, Hyatt will double its global hotel impression, the assertion added.
Apple Leisure Group and KKR didn’t quickly react to a solicitation for input.
