CHICAGO—Hyatt Hotels Corp. has acquired Miraval Group, a provider of wellness experiences, from an affiliate of KSL Capital Partners, LLC.
The deal includes the flagship Miraval Arizona Resort & Spa, and Hyatt will continue Miraval’s plans to redevelop the recently acquired 220-acre Travaasa Resort in Austin, TX, and pursue the acquisition and redevelopment of the 380-acre Cranwell Spa & Golf Resort in Lenox, MA. The transaction also includes the acquisition of the Miraval Life in Balance Spa brand, which opened its first location in Dana Point, CA, last year.
“The Miraval acquisition reflects our commitment to super-serving the high-end traveler and finding new ways to understand and care for them,” said Mark Hoplamazian, Hyatt’s president/CEO. “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 $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 Hyatt’s asset recycling program.
Steven Rudnitsky, president/CEO of Miraval Group, will continue in that role to drive the brand’s growth strategy, reporting to Mark Hoplamazian and working with the existing Miraval leadership team and associates.
“Our shared purpose makes Hyatt the ideal acquisition partner,” said Rudnitsky. “This transaction will unlock Miraval’s full potential by joining us with one of the foremost global hospitality companies fully committed to wellness. Consistent with Hyatt’s strategy, Miraval offers destinations for guests who take an active role in seeking inspiration and self-improvement for a life in balance.”
“Importantly, the acquisition also extends the Hyatt brand into adjacent spaces beyond traditional hotel stays, which is core to Hyatt’s global growth strategy,” added Hoplamazian. “We 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.”