Apple Leisure Group Debuts in Spain with its Purchase of a Majority Stake in Alua Hotels

23 January 2019 – Revista 80 Días

The US group is one of the largest managers of accommodation in the Caribbean. This purchase allows it to enter the vacation segment and the European market.

Apple Leisure Group (ALG), one of the largest hotel investors in the USA, has acquired a majority stake in the share capital of Alua Hotels and Resorts, the hotel group founded in 2015 by its main executives and the private equity fund Alchemy Partners. The amount of the purchase has not been revealed, although the joint operating result of the chain’s main hotels amounted to €6 million in 2017. Given that the properties are located in areas with high tourist demand and good forecasts, the amount of the operation could have exceeded €40 million, based on the multiples that are typically used for this type of transaction.

With this acquisition, ALG is entering the European market through the sun and beach holiday segment. And it is doing so in a country such as Spain, which receives more than 80 million tourists per year in search of that kind of offer. Alua Hotels has 11 hotels located in Mallorca, Ibiza, Fuerteventura and Tenerife, together with an apartment building in Ibiza.

In total, ALG will manage more than 3,000 4-star hotel rooms, focused on the type of tourist who wants a superior service to that usually found in the average accommodation establishments in beach areas. The US company is planning to undertake more acquisitions in the European market and has announced that it wants to become a reference player in the main destinations in the Mediterranean (…).

Apple Leisure Group is one of the most important investment conglomerates in tourism in the USA. It used to be owned by the investment fund Bain Capital (…), which sold it in 2017 to the funds KSL Capital Partners and KKR for an undisclosed sum. (…). According to data from the conglomerate, it manages 14 brands and handles more than 3.2 million passengers per year (…). Its turnover exceeds USD 3 billion per year (…).

Original story: Revista 80 Días 

Translation: Carmel Drake

KKR & Dunas Capital Purchase The Intertur Hotel Chain

9 May 2017 – Expansión

For €100 million / The hotel chain owns five hotels in Mallorca and Ibiza, containing 1,119 rooms. The new owners are going to modernise and reposition the assets.

The private equity fund KKR and the asset manager Dunas Capital have reached an agreement to purchase the hotel chain Intertur Hotels, which owns five establishments in Mallorca and Ibiza.

The terms of the transaction have not been disclosed, but sources in the market have indicated that the acquisition was closed for a price of just over €100 million. In addition, the investors plan to modernise and reposition the acquired hotel portfolio, which contains 1,119 rooms.

Freshfields, Deloitte, Bird & Bird and Deerns advised the buyers to the operation, whilst the law firm Buades advised the vendor.

Once the agreement enters into force, Alua Hotels & Resorts will be responsible for managing the hotels, which will be marketed under that brand from 2018 onwards. The Aula hotel group, in which the alternative asset manager Alchemy Partners owns a stake, manages 15 hotel assets and almost 3,200 rooms in the Balearic and Canary Islands.

Specifically, Intertur owns two hotels in Mallorca –Hotel Hawaii Mallorca & Suites and Palmanova Bay, both in Palma Nova–, and three assets in Ibiza –Hotel Hawaii Ibiza (in San Antonio) and apartments and a hotel (in Santa Eulalia)–.

Guillaume Cassou, Head of European Real Estate at KKR, said that this portfolio constitutes a “very solid base” for creating value in a market that is benefitting from a very favourable environment and he underlined the interest expressed by KKR, Dunas Capital and Alua in “undertaking more projects together”.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake