Hyatt Acquires Playa Hotels, Plans $2B Real Estate Sale, and Aims for 6.7%-7.7% Net Rooms Growth

Hyatt Hotels Corporation has completed the acquisition of Playa Hotels & Resorts and agreed to sell the entire Playa Real Estate portfolio for $2 billion. The company expects a 6.7%-7.7% net rooms growth outlook while advancing its asset-light strategy.

Hyatt Hotels Corporation has completed its acquisition of Playa Hotels & Resorts and agreed to sell the entire Playa Real Estate portfolio for $2 billion. This strategic move aligns with Hyatt's ongoing asset-light strategy, which aims to reduce capital risks and boost liquidity [1].

The acquisition, finalized in June 2025, includes 15 all-inclusive resorts in Mexico, the Dominican Republic, and Jamaica. Hyatt will retain 50-year management rights for 13 of these properties, while selling the real estate portfolio to Tortuga Resorts [2]. This transaction is part of Hyatt's broader shift to focus on fee-based earnings, which currently make up over 80% of its revenue [3].

The company expects a net rooms growth outlook of 6.7% to 7.7% following this acquisition. This growth is expected to be driven by the addition of new properties and the expansion of existing ones. Hyatt's strategic alignment with industry trends, such as the preference for franchising and management agreements, positions it well to capitalize on this growth [3].

Hyatt's financial performance has been strong, with its shares rising 2% to $138.94 following the release of its second-quarter earnings, which beat analyst estimates. Revenue rose by 6.2% to $1.81 billion, and adjusted earnings per share (EPS) came in at 68 cents, compared to the consensus estimate of 60 cents [1].

The asset-light model has allowed Hyatt to generate stable, high-margin management fees, projected to yield $60–$65 million in stabilized Adjusted EBITDA by 2027. This model also reduces fixed costs and allows Hyatt to scale operations without upfront capital expenditures. For instance, the rebranding of Playa's Thompson properties to Hyatt Centric—a lifestyle-oriented brand targeting experience-driven travelers—has diversified revenue streams [3].

Hyatt's forward EV/EBITDA of 18.5x is lower than peers like Marriott (21.5x) and Hilton (19.8x), suggesting potential for a valuation re-rating as the market recognizes the durability of its fee-based earnings. Additionally, the $2 billion in real estate proceeds will be used to repay the delayed draw term loan, reducing leverage and freeing up capital for future opportunities [3].

In summary, Hyatt Hotels Corporation's acquisition of Playa Hotels & Resorts and the subsequent real estate sale is a significant step in its asset-light strategy. This move positions Hyatt as a leader in the luxury hospitality sector, offering a blueprint for sustainable profitability and shareholder returns in an increasingly volatile market.

References:
[1] https://www.costar.com/article/279893812/how-hyatt-evolved-its-business-strategy-through-acquisitions-and-new-brands
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3TZ15R:0-hyatt-hotels-rises-after-quarterly-results-beat-estimates/
[3] https://www.ainvest.com/news/hyatt-strategic-acquisition-playa-implications-long-term-creation-2508/