Hyatt announced back in December that it had started exclusive negotiations (read more here) with Playa Hotels & Resorts to acquire them, and this was extended once (read more here).
Hyatt has now agreed to acquire Playa for roughly $2.6B, including debt, and plans to offload Playa-owned real estate.
You can access Hyatt here and Playa Resorts here.
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Hyatt’s Announcement:
Hyatt Announces Plans to Acquire Playa Hotels & Resorts N.V., Enhancing Hyatt’s All-Inclusive Platform
CHICAGO, IL (February 10, 2025) – Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt has entered into an agreement to acquire all outstanding shares of Playa Hotels & Resorts N.V. (NASDAQ: PLYA, Playa) for $13.50 per share, or approximately $2.6 billion, including approximately $900 million of debt, net of cash. Playa is a leading owner and operator of all-inclusive resorts in Mexico, the Dominican Republic and Jamaica and Hyatt is currently the beneficial owner of 9.4% of Playa’s outstanding shares.
“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,” said Mark Hoplamazian, President and Chief Executive Officer, Hyatt. “We have respected and benefitted from Playa’s operating expertise and outstanding guest experience delivery for years through their ownership and management of eight of our Hyatt Ziva and Hyatt Zilara hotels. 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.”
Playa’s portfolio includes high-quality resorts in iconic locations and strategically important markets. The pending acquisition provides an opportunity to secure long-term management agreements for Hyatt’s luxury all-inclusive Hyatt Ziva and Hyatt Zilara branded properties. It also will expand Hyatt’s distribution channels, including ALG Vacations and Unlimited Vacation Club, to Playa’s portfolio, offering additional benefits to guests of Playa hotels. Hyatt is well-positioned to drive value creation through complementary business segments and further optimize its existing all-inclusive infrastructure in Mexico and the Caribbean.
This pending acquisition marks the next step on a significant growth journey for Hyatt’s all-inclusive portfolio, including the acquisition of Apple Leisure Group in 2021, and the 2024 completion of a 50/50 strategic joint venture with Grupo Piñero, which added the Bahia Principe Hotels & Resorts portfolio to Hyatt’s Inclusive Collection, which currently spans approximately 55,000 rooms across Latin America, the Caribbean and Europe.
Hyatt remains committed to its asset-light business model and intends to identify third-party buyers for Playa’s owned properties. Following the close of the transaction, Hyatt anticipates realizing at least $2.0 billion of proceeds from asset sales by the end of 2027 and expects asset-light earnings to exceed 90% on a pro forma basis in 2027.
At closing, Hyatt expects to fund 100% of the acquisition with new debt financing and, consistent with maintaining its investment grade profile, expects to pay down over 80% of the new debt financing with proceeds from asset sales.
The acquisition is anticipated to close later this year, subject to Playa shareholder and regulatory approval as well as other customary closing conditions.
In connection with the transaction, BDT & MSD Partners is acting as lead financial advisor to Hyatt with Berkadia serving as Hyatt’s real estate advisor. BofA Securities, J.P. Morgan, and Wells Fargo are also acting as financial advisors to Hyatt and have also provided fully committed bridge financing in relation to the transaction. Latham & Watkins LLP is Hyatt’s legal advisor.
Playa Resorts properties:
Dominican Republic
Hilton La Romana
Hilton La Romana Adult Resort
Hyatt Zilara Cap Cana Adult Resort
Hyatt Ziva Cap Cana
Sanctuary Cap Cana, a Luxury Collection Resort
Wyndham Alltra Punta Cana
Wyndham Alltra Samana
Jamaica
Hilton Rose Hall
Hyatt Zilara Rose Hall Adult Resort
Hyatt Ziva Rose Hall
Jewel Grande
Jewel Paradise Cove Adult Resort
Mexico
Hilton Playa Del Carmen Adult Resort
Hyatt Zilara Cancun Adult Resort
Hyatt Ziva Cancun
Hyatt Ziva Los Cabos
Hyatt Ziva Puerto Vallarta
Kimpton Tres Rios
Paraiso de la Bonita Luxury Collection Resort
Seadust Cancun Family Resort
The Yucatan Playa Del Carmen by Hilton, Adult Resort
Turquoize Cancun
Wyndham Alltra Cancun
Wyndham Alltra Playa Del Carmen, Adults Only
Wyndham Alltra Vallarta
Conclusion
Hyatt has definitely gone all-in in all-inclusives, and I really wonder if this makes any sense, as this bubble will eventually burst.
The deal should close later this year and all these properties that are affiliated with other chains will eventually be reflagged.
