After more than a month of negotiations, the deal has been confirmed: Hyatt Hotels Corp. has entered into an agreement to acquire all outstanding shares of Playa Hotels & Resorts for approximately $2.6 billion, including approximately $900 million of debt, net of cash.
Playa is an owner and operator of all-inclusive resorts in Mexico, the Dominican Republic and Jamaica. Its total portfolio includes 24 hotels with 8,627 guestrooms. Hyatt is currently the beneficial owner of 9.4 percent 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,” Hyatt President and CEO Mark Hoplamazian said in a statement. “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.”
“We are pleased to enter into this agreement with Hyatt and look forward to delivering the many benefits of the transaction to Playa's shareholders, guests, employees and other stakeholders," Bruce Wardinski, chairman and CEO of Playa Hotels & Resorts, 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. As a result of our robust process and engagement with a number of potential counterparties, we are confident that this transaction maximizes shareholder value. The transaction will deliver to Playa shareholders a 40 percent premium to the company's unaffected stock price prior to the disclosure of exclusive discussions with Hyatt."
The pending acquisition positions Hyatt to secure long-term management agreements for its all-inclusive Hyatt Ziva- and Hyatt Zilara-branded properties. It also is poised to expand Hyatt’s distribution channels, including ALG Vacations and Unlimited Vacation Club, to Playa’s portfolio. According to the company’s statement, Hyatt expects the deal to “drive value creation through complementary business segments and further optimize its existing all-inclusive infrastructure in Mexico and the Caribbean.”
Hyatt’s current 11 Inclusive Collection brands have a total of approximately 55,000 guestrooms,
All-Inclusive Growth
Hyatt’s all-inclusive portfolio has gained ground in recent years through the 2021 acquisition of Apple Leisure Group 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. That collection currently spans approximately 55,000 rooms across Latin America, the Caribbean and Europe.
Beyond acquiring all-inclusive flags, Hyatt also announced plans to acquire Standard International in August.
Next Steps
Hyatt intends to identify third-party buyers for Playa’s owned properties. Following the close of the transaction, Hyatt anticipates realizing at least $2 billion of proceeds from asset sales by the end of 2027 and expects asset-light earnings to exceed 90 percent on a pro-forma basis in 2027.
The acquisition is anticipated to close later this year, subject to Playa shareholder and regulatory approval as well as other customary closing conditions.
At closing, Hyatt expects to fund 100 percent of the acquisition with new debt financing and, consistent with maintaining its investment grade profile, expects to pay down over 80 percent of the new debt financing with proceeds from asset sales.
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 is Hyatt’s legal advisor. PJT Partners is financial advisor to Playa Hotels & Resorts and Hogan Lovells and NautaDutilh N.V. are serving as legal counsel.