US-based Apple Leisure Group is expanding in Europe by taking a majority stake in Spanish chain Alua Hotels & Resorts.
The deal, for an undisclosed sum, will see ALG manage more than 4,000 rooms in Spain and Alua become its mid-market hotel brand globally.
The fast-growing hotel chain was founded in 2015 and manages 16 hotels in the Balearic and the Canary Islands, owned by institutional investors such as KKR, Blackstone and HI Partners.
Alua will be integrated into ALG’s European division.
ALG claims to be the largest seller of holiday packages and charter flights in the US for travel to Mexico and the Caribbean, handling about 3.2 million passengers a year across multiple tour operator brands including Apple Vacations and Funway Holidays.
“ALG European division’s strategic plan is aimed primarily at establishing a strong presence in highly popular tourist destinations across the Mediterranean,” the company said.
“The transaction will provide ALG with the structure and capacity to manage hotel properties in Europe, and when combined with the strategic agreements the group has already signed, will translate into opportunities for additional growth.”
ALG CEO Alex Zozaya said: “The addition of Alua Hotels & Resorts to Apple Leisure Group’s portfolio is a true testament to our strong commitment to growing our company footprint in Spain.
“This acquisition is just the beginning of ALG’s European expansion plans and future contributions to the market’s burgeoning tourism sector.”
Alua CEO Javier Aguila will assume the role of president of ALG Europe and will join the executive committee of the US-based parent company, while Jordi de las Moras will continue as managing director of the European division.
Javier Coll, executive vice president and chief strategy officer of ALG, who is responsible for operations in Europe, said: “With this agreement, we take another step in our international growth strategy.
“Acquiring Alua Hotels & Resorts allows us to expand on the strategic agreement that we already have by giving us the ability to offer not only sales and branding services, but also operations management to both owners and investors, as we already do in the Americas.
“At the same time, we are adding a brand in a strategic segment for us, which we will work to grow in both the Americas and Europe.”
Aguila added: “Without a doubt, the experience and leadership of ALG in the areas of distribution, brand development, and luxury resort brand management, together with the structure and work team of Alua, will give us a competitive advantage in reaching our strategic goals at both the national and global level.”