Apple Leisure Group Partners With Playa Hotels

Apple Leisure Group, the vertically integrated parent of vacation wholesaler Apple Vacations, the USA 3000 airline, Amstar Destination Management and AM Resorts Management Co., entered into a joint venture with an investor group led by Washington, D.C.-based Playa Hotels & Resorts to buy and manage hotels.

Under the agreement, the investor group will provide Apple growth capital in exchange for a minority, non-controlling interest in Apple Leisure Group. The infusion of capital will enable Apple to grow its hotel portfolio to more than 30 hotels and 13,000 rooms over the next two years, and to continue the pace with a goal of taking it to over 100 properties.

According to Tim Mullen, Apple’s senior vice president, Apple has previously financed its hotel development strictly from its own resources.

“The opportunity is there and at the pace we need to run the business, we need outside resources,” he said. “We currently have eight properties, with 18 in the pipeline. Knowing that we have the resources, we’re going to keep going at that pace.”