Hyatt buys Miraval Group for $215 million

Hyatt Hotels Corporation announced that Hyatt has acquired Miraval Group, the renowned provider of wellness and mindfulness experiences, from an affiliate of KSL Capital Partners, LLC.

Hyatt Hotels Corporation announced that Hyatt has acquired Miraval Group, the renowned provider of wellness and mindfulness experiences, from an affiliate of KSL Capital Partners, LLC.

For over 20 years, Miravalโ€™s flagship property in Tucson, Ariz. has been considered one of the nationโ€™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 Miravalโ€™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.


โ€œThe Miraval acquisition reflects our commitment to super serving the high-end traveler and finding new ways to understand and care for them,โ€ said Mark Hoplamazian, president and chief executive officer, Hyatt Hotels Corporation. โ€œWe know that wellness is an area that is becoming increasingly important to our guests and we share Miravalโ€™s belief that wellness is more than fitness and nutrition โ€“ itโ€™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.โ€

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 Hyattโ€™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 brandโ€™s growth strategy, reporting to Mark Hoplamazian and working with the existing Miraval leadership team and associates.

โ€œImportantly, the acquisition also extends the Hyatt brand into adjacent spaces beyond traditional hotel stays, which is core to Hyattโ€™s global growth strategy,โ€ said Hoplamazian. โ€œWe 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.โ€

The announcement continues Hyattโ€™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.

โ€œOur shared purpose makes Hyatt the ideal acquisition partner,โ€ said Rudnitsky. โ€œThis transaction will unlock Miravalโ€™s full potential by joining us with one of the foremost global hospitality companies fully committed to wellness. Consistent with Hyattโ€™s strategy, Miraval offers destinations for guests who take an active role in seeking inspiration and self-improvement for a life in balance.โ€

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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