Hyatt Hotels has confirmed it will buy Apple Leisure Group from current owners KKR and KSL Capital Partners for $2.7 billion in cash.

The transaction is anticipated to close in the fourth quarter of the year, subject to closing conditions. 

The move comes as Hyatt seeks to boost its presence in the luxury resort sector.

Apple Leisure provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas under the AMR Collection of brands.

This includes flags such as Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts.

Also included is the Alua Hotels & Resorts brand, which is expanding in European leisure destinations.

“With the asset-light acquisition of Apple Leisure Group, we are thrilled to bring a highly desirable independent resort management platform into the Hyatt family,” said Mark Hoplamazian, president and chief executive of Hyatt.

“Importantly, the combination of this value-creating acquisition and the $2 billion increase in our asset sale commitment will transform our earnings profile, and we expect Hyatt to reach 80 per cent fee-based earnings by the end of 2024.”

The deal will double the number of resort locations in the Hyatt portfolio.

Apple Leisure will continue to be led by current chief executive, Alejandro Reynal.

Reynal will become a member of the Hyatt executive leadership team and report to Hoplamazian.

The Apple portfolio consists of over 33,000 rooms spread over 100 properties operating in ten countries.

“Combining Hyatt’s deep expertise and global brand footprint with our strong resort brands, operating capabilities and robust development plans will elevate our differentiated position and create a leader in luxury leisure travel,” said Reynal.

“On behalf of everyone at Apple Leisure, I am grateful to our partners at KKR and KSL who supported us in building the platform into what it is today.

“I am excited to have our team join the Hyatt family and I anticipate a robust growth journey ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travellers around the world.”