The Hyatt Hotels Corporation has acquired elite wellness experience provider Miraval Group from an affiliate of KSL Capital Partners, LLC, the Chicago-based company confirmed Wednesday.
The acquisition of Miraval will form an all-new wellness category within Hyatt's portfolio of brands.
The move means that Hyatt will acquire Miraval flagship Miraval Arizona Resort & Spa in Tucson as well as the Travaasa Resort in Austin, Texas, and the Miraval Life in Balance Spa brand. As part of the acquisition, Hyatt will pick up where Miraval left off in redeveloping the Travaasa Resort and will aim to acquire and eventually redevelop Lenox, Massachusetts' Cranwell Spa & Golf Resort.
The company will make an initial investment of $215 million to acquire the Miraval brand and its two properties in Tucson and Austin and plans to invest an additional $160 million in the coming years to expand the Tucson resort, redevelop the Austin resort and acquire and redevelop the Lenox resort.
Miraval president and CEO Steven Rudnitsky will continue to lead the brand's growth strategy.
"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," said Hyatt president and CEO Mark Hoplamazian in a statement accompanying Wednesday's announcement.
"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."
[READMORE] READ MORE: 10 Hotels Leading the Wellness Travel Space in 2017 [/READMORE]
The timing of the acquisition couldn't be much better for Hyatt given the current boom in demand for travel experiences built around wellness.
"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," added Hoplamazian, who told Fortune that he sees potential in bringing Miraval's offerings to Hyatt guests, a majority of which are business travelers.
He also said he could potentially see the brand expand into corporations, with services being offered on-site at companies' headquarters.
Hyatt also said it's working to incorporate the newly-acquired properties into its Hyatt Gold Passport loyalty program.
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