Hyatt Hotels Strikes $2.6 Billion Deal to Purchase Playa Hotels

Hyatt Hotels Corporation (NYSE: H) has announced a significant move in the all-inclusive resort market by entering into an agreement to acquire all outstanding shares of Playa Hotels & Resorts N.V. (NASDAQ: PLYA) for $13.50 per share, totaling approximately $2.6 billion, including approximately $900 million of debt, net of cash. The acquisition, expected to close later this year, subject to regulatory and shareholder approval, will strengthen Hyatt's position in the all-inclusive resort segment, particularly in Mexico, the Dominican Republic, and Jamaica.



The all-inclusive resort market has been growing in popularity, driven by consumer demand for convenience and value. Hyatt's acquisition of Playa Hotels & Resorts, a leading owner and operator of all-inclusive resorts in these strategic markets, will further solidify Hyatt's leadership in this segment. Playa's portfolio includes high-quality resorts in iconic locations, providing Hyatt with an opportunity to secure long-term management agreements for its luxury all-inclusive Hyatt Ziva and Hyatt Zilara branded properties. Additionally, the acquisition 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's commitment to an asset-light business model is evident in its plans 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 of Playa Hotels & Resorts by Hyatt Hotels Corporation is a strategic move that will enhance Hyatt's all-inclusive platform, expand its distribution channels, and strengthen its competitive position in the all-inclusive resort market. By integrating Playa's operations into its existing portfolio, Hyatt can expect to achieve synergies, cost savings, and improved financial performance in the long term.