Hyatt buys wellness pioneer
Chicago – 20 January 2017
Hyatt Hotels Corporation acquires Miraval Group, a provider of wellness and mindfulness experiences, from an affiliate of KSL Capital Partners. 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, California, last year.
“The Miraval acquisition reflects our commitment to super serving the high-end traveller and finding new ways to understand and care for them,” says 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 US$215 million for the Miraval brand and the resorts in Tucson and Austin.
Hyatt expects to invest an additional US$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 programme.
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 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,” says Hoplamazian. “We recognise the business opportunity within the US$420 billion wellness-tourism category and understand the rising demand for wellness offerings among our targeted high-end travellers.”