Hyatt Hotels announced on Monday that it will acquire Playa Hotels & Resorts in a deal valued at $2.6 billion, marking a major expansion of its all-inclusive resort offerings in the Caribbean and Mexico. This acquisition will significantly enhance Hyatt’s presence in key resort locations where development opportunities are increasingly limited.
The acquisition allows Hyatt to gain expertise in the all-inclusive hospitality sector and scale its operations in high-demand regions. Hyatt has been a long-time investor in Playa, holding a 9.4% stake before the deal. Under the terms, Hyatt will pay $13.50 per share for the remaining shares of Playa.
Hyatt CEO Mark Hoplamazian expressed the company’s admiration for Playa’s expertise in managing high-quality resorts, noting that Hyatt has already benefitted from Playa’s management of eight Hyatt Ziva and Hyatt Zilara hotels. The acquisition includes debt net of cash and values Playa at about a 40% premium to its market capitalisation as of December 20.
This deal will add 24 resorts to Hyatt’s portfolio, further solidifying its position in the luxury all-inclusive segment. The companies expect the transaction to close later this year. Hyatt has indicated that it will sell select real estate assets, maintaining management contracts, to remain an asset-light company. Some of Playa’s resorts, which it owns, are expected to be sold by 2027, with an anticipated value of at least $2 billion.
Analysts predict that after these asset sales, Hyatt could earn around $20 million annually in management and franchise fees. Playa’s non-Hyatt-branded properties will likely be converted into Hyatt-branded resorts, allowing Hyatt to gain greater control over the operation of these properties.
The acquisition is seen as part of a broader trend of consolidation in the all-inclusive resort market, driven by growing demand from high-end travellers post-pandemic and the desire by hotel chains to expand their loyalty programs. The deal positions Hyatt well to manage the regional volatility that has affected Playa, such as hurricanes, and capitalise on the increasing popularity of luxury all-inclusive resorts.
