Hyatt Hotels Corp. bought out wellness resort and spa company Miraval Group from a KSL Capital Partners LLC affiliate.
Under the terms of the deal, Hyatt will acquire Miraval's flagship Miraval Arizona Resort & Spa in Tucson, Ariz., and the Miraval Life in Balance Spa brand, which broke ground on its first location in Dana Point, Calif., in 2016.
Moreover, Hyatt will advance Miraval's plans to redevelop the 220-acre Travaasa Resort in Austin, Texas, and pursue the purchase and redevelopment of the 380-acre Cranwell Spa & Golf Resort in Lenox, Mass.
As part of the deal, Hyatt agreed to an initial investment of $215 million for the Miraval brand and the Tucson and Austin resorts. The company also expects to invest an additional $160 million over the next two to three years to finance the expansion of the Tucson resort, the redevelopment of the Austin resort and the acquisition and redevelopment of the Lenox resort.
Hyatt said it will use current operating cash flows and proceeds from the sale of existing assets to fund the investment. The company anticipates that the investments will be marginally accretive to its adjusted EBITDA in 2017 and 2018.
"Importantly, the acquisition also extends the Hyatt brand into adjacent spaces beyond traditional hotel stays, which is core to Hyatt's global growth strategy," Hyatt CEO and President Mark Hoplamazian said in a statement.
According to the statement, Miraval will form a distinct new wellness category within the Hyatt portfolio of brands.