Key facts
- Travel + Leisure Co. is acquiring 23 resorts through two separate acquisitions.
- The company has closed on the purchase of Yes& Vacations and agreed to acquire Spinnaker Resorts.
- The combined purchase price for the two companies is $343 million.
- The acquisitions are expected to contribute $50 million in adjusted earnings before interest, taxes, depreciation and amortization on a full-year basis.
- The acquired properties will expand Travel + Leisure's presence in Maui, Hawaii, and Hilton Head, South Carolina.
Hospitality company Travel + Leisure Co. announced Wednesday it has closed on the purchase of Yes& Vacations and has a definitive agreement to acquire Spinnaker Resorts, adding a total of 23 resorts to its portfolio. The combined purchase price for the two companies is $343 million, funded through cash and existing debt capacity.
The acquisitions are projected to contribute $50 million in adjusted earnings before interest, taxes, depreciation and amortization on a full-year basis. Travel + Leisure Co. CFO Erik Hoag stated the deals reflect the company's capital allocation strategy, aiming for attractive long-term returns while maintaining balance sheet flexibility and returning capital to shareholders.
The newly acquired properties will enhance Travel + Leisure's presence in key leisure destinations, with seven properties in Maui, Hawaii, and six in Hilton Head, South Carolina. Spinnaker Resorts also has properties in Branson, Missouri; Ormond Beach, Florida; and Williamsburg, Virginia, while Yes& Vacations includes an island-inspired resort on the Las Vegas strip. Michael Brown, President and CEO of Travel + Leisure, noted that these acquisitions strategically expand the company's footprint in premier leisure markets by adding inventory in locations where new development is challenging.
Travel + Leisure is scheduled to hold its earnings call on July 22. As of Wednesday afternoon, the company's stock price had risen 2.52%.