01-20-2017, 01:35 AM
Hyatt Hotels Corp. announced its acquisition of New York-based wellness resort and spa operator Miraval Group from an affiliate of KSL Capital Partners.
The acquisition includes an initial investment of US$215 million for the Miraval brand and the resorts in Tucson, Arizona, and Austin, Texas. Hyatt expects to invest an additional US$160 million over the next two to three years to fund the expansion of the flagship Tucson resort with 10 new villas and more refinements, the redevelopment and rebranding of the 220-acre Travaasa Resort in Austin resort and the acquisition and redevelopment and rebranding of the 380-acre Cranwell Spa & Golf Resort in Lenox, Massachusetts.
The transaction also includes the acquisition of the Miraval Life in Balance Spa brand, which opened its first location in Dana Point, California, last year. The Austin property is expected to launch in Q1 2019; Lenox will open later in 2019; and the new villas in Tucson should be up and running before the end of 2017.
Hyatt will fund the investment with current operating cash flows and proceeds from the sale of existing assets, consistent with Hyatt’s asset recycling program. The company expects these investments to be marginally accretive to Adjusted EBITDA in 2017 and 2018, achieving a cash-on-cash yield in the high single digits within four to five years.
The resort in Tucson has been operational for just over 20 years and is known for its unique treatments and programs designed to help guests live life in balance. The brand will form a new wellness category within the Hyatt portfolio of brands. Steven Rudnitsky, president and chief executive officer of Miraval Group, will continue to drive the brand’s growth strategy, reporting to Hyatt President and CEO Mark Hoplamazian and working with the existing Miraval leadership team and associates.
The acquisition includes an initial investment of US$215 million for the Miraval brand and the resorts in Tucson, Arizona, and Austin, Texas. Hyatt expects to invest an additional US$160 million over the next two to three years to fund the expansion of the flagship Tucson resort with 10 new villas and more refinements, the redevelopment and rebranding of the 220-acre Travaasa Resort in Austin resort and the acquisition and redevelopment and rebranding of the 380-acre Cranwell Spa & Golf Resort in Lenox, Massachusetts.
The transaction also includes the acquisition of the Miraval Life in Balance Spa brand, which opened its first location in Dana Point, California, last year. The Austin property is expected to launch in Q1 2019; Lenox will open later in 2019; and the new villas in Tucson should be up and running before the end of 2017.
Hyatt will fund the investment with current operating cash flows and proceeds from the sale of existing assets, consistent with Hyatt’s asset recycling program. The company expects these investments to be marginally accretive to Adjusted EBITDA in 2017 and 2018, achieving a cash-on-cash yield in the high single digits within four to five years.
The resort in Tucson has been operational for just over 20 years and is known for its unique treatments and programs designed to help guests live life in balance. The brand will form a new wellness category within the Hyatt portfolio of brands. Steven Rudnitsky, president and chief executive officer of Miraval Group, will continue to drive the brand’s growth strategy, reporting to Hyatt President and CEO Mark Hoplamazian and working with the existing Miraval leadership team and associates.