Interval Leisure Group (ILG), owner of Interval International, has acquired the popular timeshare company Hyatt Residential Group. ILG announced that they have purchased the rights to the timeshare resort group from Hyatt Corporation for $190 million.
In addition, ILG will also take over their latest project, a joint venture 131-unit timeshare resort in Maui. However, ILG will refund Hyatt $35 million for their efforts on this resort. The resort is currently in development.
Currently, the Hyatt Residential Group consists of 16 resorts across the US and Puerto Rico. Hyatt’s top timeshare destinations include Arizona, Hawaii, Florida, and California. The group also owns the Hyatt Residence Club, a timeshare exchange program for Hyatt owners. Currently the residence club has approximately 30,000 members.
Chairman, president, and CEO of Interval Leisure Group, Craig M. Nash shared,
“This agreement is the result of a 20-year, multi-faceted relationship with Hyatt, one of the world’s premier global hospitality companies and brands, and we are excited to augment this relationship with the purchase of Hyatt Residential Group. We intend to invest in and grow the Hyatt Residential Group business through enhanced marketing efforts, expanding some existing projects, and executing on opportunities to broaden the group’s footprint. We look forward to continuing to provide the exceptional service and vacation experiences to which Hyatt Residence Club owners are accustomed.”
Current Hyatt timeshare members will retain all their rights as an owner. They will keep all travel privileges including Hyatt Gold Passport benefits. In addition, all Hyatt timeshare resorts will keep the Hyatt name. Hyatt will also continue to receive a portion of the annual maintenance fees for licensing. Members will also still have the option to travel and exchange with Interval International.
There is also no need to worry about changes from the new management team. Existing Hyatt Residential Group management and staff will now operate under ILG.
Nash continued, “The ILG portfolio includes companies with long and successful track records of leadership in the vacation industry and this acquisition immediately expands our timeshare resort management and exchange business. Importantly, this transaction also adds a new platform for growth with the inclusion of a vacation ownership sales and marketing infrastructure, and further advances our strategy of increasing our recurring fee-for-service revenue.”
The deal is expected to be finalized in the fourth quarter of 2014. Hyatt is excited to use this merger as a way to increase benefits to its owners and all Hyatt travelers.
Global head of real estate and capital strategy at Hyatt, Steve Haggerty said,
“This transaction allows Hyatt to accomplish two important goals: First, we are realizing significant value from this business from the sale, the recurring license fees and ILG’s focus on creating new travel opportunities under the Hyatt Residence Club brand. Second, because we will be maintaining our presence in the vacation ownership segment by working with one of the most respected companies in the space, Hyatt can focus on driving preference for its hotel brands and increasing its brand presence in key locations and strategically important markets. We believe ILG’s leadership and focus on the vacation ownership industry will bring new value to the Hyatt Residence Club brand, owners, and associates.”