Hyatt made an announcement and issued a release today that they had entered an exclusive negotiation agreement with Playa Resort for 45 days, which may result in Hyatt acquiring Playa.
Playa Resort is a Latin American hotelier with 25 hotels under the Hilton, Hyatt, IHG, Marriott, and Wyndham brands.
You can access Hyatt here and Playa Resorts here.
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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
Hyatt’s Announcement:
Hyatt Discloses Exclusive Discussions With Playa Hotels & Resorts N.V.
12/23/2024
CHICAGO–(BUSINESS WIRE)– Hyatt Hotels Corporation (the “Company” or “Hyatt”) (NYSE: H) today disclosed it has executed an exclusivity agreement with Playa Hotels & Resorts N.V. (“Playa”) (NASDAQ: PLYA) under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives, which may include the acquisition of Playa by Hyatt.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, “Playa has been a valuable partner for many years, is one of the world’s strongest operators of all-inclusive resorts, and owns a premier portfolio of high-quality, high-end all-inclusive resorts in iconic locations and key markets across the Caribbean and Mexico. Strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams for Hyatt. We remain steadfastly committed to our asset-light business model and if this process continues, we will continue to map out a clear path for an asset-light outcome for any strategic alternatives we undertake.”
There can be no assurances that any transaction will result from Hyatt’s exclusive discussions with Playa, or on what terms. Hyatt does not intend to comment further on these discussions unless and until a definitive agreement has been fully executed.
As required by federal securities laws, Hyatt, which is the beneficial owner of 9.99% of Playa’s outstanding shares, has filed an amendment to its Schedule 13D with the U.S. Securities and Exchange Commission to disclose these discussions.
Hyatt’s SEC Filing:
Conclusion
This is quite interesting, as Playa Resorts operates these hotels under various brands.
These non-Hyatt properties will likely be reflagged under Hyatt brands in due course if the acquisition goes forward.
Usually, these brand agreements are for decades, but there tend to be clauses for fast termination if there are significant ownership changes, as Hyatt operating Marriott, IHG, or Hilton branded properties is in nobody’s best interest.
