Miraval to continue standalone operation of resorts and spas, while
expanding unique brand of wellness experiences across Hyatt portfolio
CHICAGO--(BUSINESS WIRE)--
Hyatt
Hotels Corporation (NYSE: H) today announced that Hyatt has acquired Miraval
Group, the renowned provider of wellness and mindfulness
experiences, from an affiliate of KSL Capital Partners, LLC.
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For over 20 years, Miraval’s flagship property in Tucson, Ariz. has been
considered one of the nation’s leading wellness resorts, offering a
comprehensive program of imaginative, authentic and meaningful
activities, experiences and personal treatments designed to help guests
live life in balance. Along with acquiring the flagship Miraval Arizona
Resort & Spa, Hyatt will continue Miraval’s plans to redevelop the
recently acquired 220-acre Travaasa
Resort in Austin, Texas and pursue the acquisition and redevelopment
of the 380-acre Cranwell
Spa & Golf Resort in Lenox, Mass. The transaction also includes
the acquisition of the Miraval Life in Balance Spa brand, which opened
its first location in Dana Point, Calif. last year.
“The Miraval acquisition reflects our commitment to super serving the
high-end traveler and finding new ways to understand and care for them,”
said Mark Hoplamazian, president and chief executive officer, Hyatt
Hotels Corporation. “We know that wellness is an area that is becoming
increasingly important to our guests and we share Miraval’s belief that
wellness is more than fitness and nutrition – it’s a lifestyle. Adding
Miraval to the Hyatt family creates a great opportunity to advance the
Miraval brand expansion while building a greater depth of expertise in
wellness and mindfulness.”
The acquisition includes an initial investment of $215 million for the
Miraval brand and the resorts in Tucson and Austin. Hyatt expects to
invest an additional $160 million over the next two to three years to
fund the expansion of the Tucson resort, the redevelopment of the Austin
resort and the acquisition and redevelopment of the Lenox resort. 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.
Miraval will form a distinct 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 Mark Hoplamazian and working with the existing
Miraval leadership team and associates.
“Importantly, the acquisition also extends the Hyatt brand into adjacent
spaces beyond traditional hotel stays, which is core to Hyatt’s global
growth strategy,” said Hoplamazian. “We recognize the business
opportunity within the $420 billion wellness-tourism category and
understand the rising demand for wellness offerings among our targeted
high-end travelers.”
Today’s announcement continues Hyatt’s commitment to a holistic health
and wellness strategy as an extension of its purpose, to care for people
so they can be their best. For example, since 2014, Hyatt chefs around
the globe have been championing Food.
Thoughtfully Sourced, Carefully Served, a program featuring
menus evolved with an eye on sustainable health. This includes options
such as grass-fed meats, sustainable seafood and organic fruits and
vegetables. Additionally, many Hyatt hotels worldwide are offering more
options for travelers to maintain a healthier routine, including healthy
refreshments at arrival, curated in-room amenities, increased fitness
offerings, expanded menus and nutritious to-go alternatives.
“Our shared purpose makes Hyatt the ideal acquisition partner,” said
Rudnitsky. “This transaction will unlock Miraval’s full potential by
joining us with one of the foremost global hospitality companies fully
committed to wellness. Consistent with Hyatt’s strategy, Miraval offers
destinations for guests who take an active role in seeking inspiration
and self-improvement for a life in balance.”
The term “Hyatt” is used in this release for convenience to refer to
Hyatt Hotels Corporation and/or one or more of its affiliates. Hyatt is
working to include the referenced properties in its loyalty program, but
the properties are not currently participating.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation (NYSE: H), headquartered in Chicago, is a
leading global hospitality company with a portfolio of 12 premier brands
and 679 properties in 54 countries, as of September 30, 2016. The
Company's purpose to care for people so they can be their best informs
its business decisions and growth strategy and is intended to create
value for shareholders, build relationships with guests and attract the
best colleagues in the industry. The Company's subsidiaries develop,
own, operate, manage, franchise, license or provide services to hotels,
resorts, branded residences and vacation ownership properties, including
under the Park Hyatt®, Grand Hyatt®, Hyatt
Regency®, Hyatt®, Andaz®, Hyatt
Centric®, The Unbound Collection by Hyatt™, Hyatt
Place®, Hyatt House®, Hyatt Ziva™, Hyatt
Zilara™ and Hyatt Residence Club® brand names and
have locations on six continents. For more information, please visit www.hyatt.com.
About Miraval Group
New York-based Miraval Group is a global leader in wellness resorts and
spas. Miraval
Arizona Resort & Spa in Tucson pioneered the destination
wellness spa resort category with its comprehensive program of
activities, experiences and personal treatments. In April 2016, Miraval
opened the Life in Balance Spa at Monarch Beach Resort in Dana Point, CA.
The company is developing Miraval Life in Balance Spas and Miraval
destination wellness resorts concurrently in key national markets and
has recently announced plans for new resort developments in Lenox, MA
and Austin, TX.
About KSL Capital Partners, LLC
KSL Capital Partners, LLC is a private equity firm specializing in
travel and leisure enterprises in five primary sectors: hospitality,
recreation, clubs, real estate and travel services. KSL has offices in
Denver, CO; Stamford, CT; and London. Since 2005, KSL has raised
approximately $7.4 billion in equity capital commitments. KSL's current
portfolio includes some of the premier properties in travel and leisure.
For more information, please visit www.kslcapital.com.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements
include statements about Hyatt’s acquisition of Miraval Group, growth
strategy, and introduction of new brand concepts and involve known and
unknown risks that are difficult to predict. In some cases, you
can identify forward-looking statements by the use of words such as
“may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “continue,” “likely,”
“will,” “would” and variations of these terms and similar expressions,
or the negative of these terms or similar expressions. Such
forward-looking statements are necessarily based upon estimates and
assumptions that, while considered reasonable when made, are inherently
uncertain, and are subject to numerous assumptions and uncertainties,
many of which are outside of Hyatt’s, Miraval Group’s or KSL Capital’s
control, which could cause actual results, performance or achievements
to differ materially from those expressed in or implied by such
statements. Forward-looking statements made in this press release
are made only as of the date of their initial publication and no party
undertakes any obligation to publicly update any of these forward
looking statements as actual events unfold, except to the extent
required by applicable law. If one or more forward-looking
statements is updated, no inference should be drawn that any additional
updates will be made with respect to those or other forward-looking
statements.

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Source: Hyatt Hotels Corporation