The acquisition of Hyatt Residential Group business for approximately US$190 million includes the management of 16 Hyatt Residences and the Hyatt Residence Club, the exchange system among owners.

Interval Leisure Group’s acquisition of the Hyatt Residential Group business will also include Hyatt’s interest in a joint venture that owns and is developing a 131-unit vacation ownership property in Maui. ILG will reimburse Hyatt an additional amount of approximately $35 million, representing Hyatt’s contributions to the joint venture through the transaction’s anticipated closing date.

In connection with the agreement, Hyatt has selected ILG as Hyatt’s exclusive licensee in vacation ownership. Following the closing of the transaction, Hyatt Residential Group’s existing management team will continue operating the acquired businesses under ILG’s ownership.

“We intend to invest in and grow the Hyatt Residential Group business through enhanced marketing efforts, expanding some existing projects, and executing on opportunities to broaden the group’s footprint,” remarked Craig Nash, chairman, president and CEO of Interval Leisure Group.

According to Steve Haggerty, global head of real estate and capital strategy at Hyatt, this transaction will allow Hyatt to realize significant value from this business from the sale, recurring license fees and ILG’s focus on creating new travel opportunities under the Hyatt Residence Club brand. By licensing the brand the group will maintain its presence in the vacation ownership segment, while Hyatt focusses on its hotel brands.

The deal is expected to close in the fourth quarter of this year.