Hospitality company Travel + Leisure Co., which owns more than 280 resorts around the globe, is purchasing 23 more through two separate acquisitions.
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The Orlando, Florida-based company announced Wednesday that it has closed on the purchase of Yes& Vacations and has a definitive agreement to acquire Spinnaker Resorts in a deal expected to close in the third quarter of this year.
The combined purchase price for the two companies is $343M, which Travel + Leisure Co. is funding through cash and existing debt capacity, it said.
The acquisitions are expected to contribute $50M of adjusted earnings before interest, taxes, depreciation and amortization on a full-year basis.
“These acquisitions reflect our approach to capital allocation — deploying capital where we believe it can generate attractive long-term returns while maintaining balance sheet flexibility and continuing our consistent approach to returning capital to shareholders,” Travel + Leisure Co. Chief Financial Officer Erik Hoag said in the release.
The 23 properties set to come under Travel + Leisure's ownership will expand its presence in Maui, Hawaii, and Hilton Head, South Carolina. Seven properties are in Maui, under Yes& Vacations' portfolio, and six are in Hilton Head, under Spinnaker Resorts' portfolio.
Spinnaker Resorts has a total 11 resorts, including in Branson, Missouri; Ormond Beach, Florida; and Williamsburg, Virginia. Yes& Vacations also has an island-inspired resort on the Las Vegas strip.
“Acquiring these companies strategically expands our presence in premier leisure destinations, adding quality inventory in markets where new development is challenging,” Travel + Leisure President and CEO Michael Brown said in the release.
Travel + Leisure is set to hold its earnings call on July 22. Its stock price was up 2.52% as of Wednesday afternoon.
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