Apollo Global Management announced a definitive agreement for Apollo-managed funds to acquire The Travel Corporation (TTC), a privately owned travel company with a storied history.

The deal includes 18 of TTC’s brands, such as tour operator Trafalgar, Uniworld Boutique River Cruises, youth travel specialist Contiki and premium guided vacation specialist Insight Vacations. A few TTC brands, including the Red Carnation Hotel Collection, are not part of the transaction. Financial terms were not disclosed.

The transaction marks a significant shift for TTC, which has been family-owned and operated for over 104 years. The company got its start in South Africa and is now headquartered in Cypress, Calif.

“Without a next generation to lead TTC, the time has come in our strategic succession plan to select a new owner with a proven track record and who shares in our vision and customer-first values,” said TTC Chairman Stanley Tollman.

Apollo’s hospitality prowess

“TTC has a leading collection of brands that we believe we can take to the next level as an Apollo Funds portfolio company,” said Apollo Private Equity Partner Michele Raba.

Apollo aims to leverage its experience in travel, tech, and hospitality sectors to grow TTC’s brands. A notable example is the acquisition of The Venetian Resort Las Vegas and the Venetian Expo from Las Vegas Sands. Apollo funds agreed to acquire the property, featuring over 7,000 hotel rooms, meeting and convention spaces and 225,000 square feet of casino, shopping, dining and entertainment, in March 2021, as the COVID-19 pandemic decimated the hospitality industry and private capital firms eyed distressed deals in the sector and beyond.

Having already cut its teeth in the industry with investments in companies such as Great Wolf Resorts and Norwegian Cruise Lines, Apollo has helped The Venetian’s management team implement a plan to enhance the property, engage team members, and drive business growth. The plan used a data-driven approach to identify opportunities for growth and value creation in anticipation of a post-COVID recovery.

The Venetian has since made significant enhancements, including a $1 billion capital plan to renovate guest rooms and the convention center, adding a high-limit gaming area and hybrid venues combining dining and entertainment, such as a Mediterranean street food restaurant and a luxury Parisian cabaret show.

Recent hospitality sector deals

The acquisition comes as global demand for touring, river cruising and specialist travel is on the rise. Recent deals in the hospitality sector include Blackstone Real Estate’s sale of the Arizona Biltmore resort in Phoenix for $705 million, H.I.G. Capital’s launch of a hotel and resort chain across Southern Europe and KSL Capital Partners’ $1.26 billion close for its latest travel and leisure-focused private credit fund, Credit Fund IV.

Recent moves by Apollo

Alternative investment giant Apollo, which reported $671 billion in assets under management at the end of the first quarter, has announced several significant deals so far this year. Last month the firm agreed to acquire a 49% minority equity interest in a semi-conductor manufacture joint venture with Intel for $11 billion. In April it entered take an agreement to take Russell 2000 company U.S. Silica Holdings private in an all-cash transaction valued at about $1.85 billion, in addition to joining forces with OceanSound Partners and other limited partners on a $1.15 billion single-asset continuation fund transaction related to the sale of OceanSound Partners Fund portfolio company SMX Group.

Earlier in the year Apollo also filed SEC paperwork to launch the Middle Market Apollo Institutional Private Lending, a new fund that has been seeded by the $276 billion sovereign wealth fund Mubadala Investment Company, and committed an undisclosed amount to help Jason Howard, former co-head of GCM Grosvenor’s Private Equity Diverse Manager investment platform, launch his own firm, New Catalyst Strategic Partners.

Advisors

The acquisition is expected to close in the fourth quarter, subject to regulatory approvals and other closing conditions.

Sidley Austin is serving as legal counsel to the Apollo Funds. Skadden, Arps, Slate, Meagher & Flom is acting as legal counsel to TTC, with Zaoui & Co as TTC’s financial advisor.