Global hospitality group Hyatt Hotels has agreed to acquire Playa Hotels & Resorts for $2.6bn, including an approximately $900m debt, with aims to bolster its presence in the all-inclusive resort market in Mexico, the Dominican Republic, and Jamaica.
Hyatt already owns 9.4% of Playa's outstanding shares. The acquisition, valued at $13.50 per share, follows the exclusivity agreement signed in December 2024.
Playa Hotels & Resorts chairman and CEO Bruce Wardinski said: “Following a deliberate and comprehensive review of opportunities, the Playa board concluded that the proposed transaction with Hyatt is in the best interest of the company.
“The transaction will deliver to Playa shareholders a 40% premium to the company's unaffected stock price prior to the disclosure of exclusive discussions with Hyatt.”
The deal also aligns with Hyatt's strategy to secure long-term management agreements for its luxury all-inclusive brands, namely Hyatt Ziva and Hyatt Zilara.
Hyatt president and CEO Mark Hoplamazian said: “Hyatt has firmly established itself as a leader in the all-inclusive space, a journey that began in 2013 through an investment in Playa Hotels & Resorts that launched the Hyatt Ziva and Hyatt Zilara brands.
“This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts.”
The acquisition is also expected to expand Hyatt’s distribution channels by integrating ALG Vacations and Unlimited Vacation Club with Playa's portfolio.
Hyatt views the deal as a value creation opportunity, leveraging complementary business segments.
The hotel group’s strategy remains focused on an asset-light model, intending to sell Playa's owned properties to third-party buyers.
The acquisition's completion, which is expected to close later this year, is subject to shareholder and regulatory approvals, along with other customary closing conditions.
Post-acquisition, Hyatt aims to generate at least $2bn from asset sales by the end of 2027, with asset-light earnings projected to exceed 90% pro forma in 2027.
Hyatt entered the all-inclusive market in 2021 with the acquisition of Apple Leisure Group.
Last year, the company expanded further by forming a 50/50 joint venture with Grupo Piñero, integrating Bahia Principe Hotels & Resorts into its inclusive collection.
This portfolio now encompasses approximately 55,000 rooms across Latin America, the Caribbean, and Europe.
Hyatt plans to use new debt financing to finance the acquisition, with plans to repay more than 80% of the debt with proceeds from asset sales, maintaining its investment-grade profile.
BDT & MSD Partners, Berkadia, BofA Securities, JP Morgan, and Wells Fargo are advising Hyatt on the deal, with Latham & Watkins as legal counsel.
In a related development, the law office of Brodsky & Smith is investigating potential claims against Playa Hotels & Resorts' board of directors for possible breaches of fiduciary duty related to the sale.
