Hyatt Hotels Corporation announced that Hyatt has acquired Miraval Group, a wellness resort and spa company famous for its flagship property in Tucson, Ariz., from an affiliate of KSL Capital Partners, LLC.
For over 20 years, Miraval’s Tucson property has been considered one of the nation’s leading wellness resorts, offering a comprehensive program of activities, experiences and treatments focused on balance.
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 Miraval Life in Balance Spa brand, which debuted in Dana Point, Calif., in early 2016.
“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, president and CEO, 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.”
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.
Miraval will form a distinct new wellness category within the Hyatt portfolio of brands. Steven Rudnitsky, president and CEO of Miraval Group, will continue to drive the brand’s growth strategy, reporting to Mark 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,” Hoplamazian said. “We recognize the business opportunity within the $420 billion wellness-tourism category and understand the rising demand.”
