Hyatt Hotels Corporation on Monday disclosed it has executed an exclusivity agreement with Playa Hotels & Resorts under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives, which may include the acquisition of Playa by Hyatt.
In a statement, Hyatt President and CEO Mark Hoplamazian, 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.”
The exclusivity agreement will remain in place until February 3, 2025.
An exclusivity agreement in a business sale grants the buyer exclusive rights to negotiate and finalize the acquisition within a predetermined period, ensuring that the seller does not engage in negotiations with other potential buyers.
Playa’s Board of Directors said it had been evaluating opportunities and has engaged with a number of potential counterparties. “Our Board and management team regularly review our structure, strategy and opportunities to enhance shareholder value, and we are pleased to enter into exclusive discussions with Hyatt regarding potential strategic options,” said Bruce Wardinski, chairman and CEO of Playa Hotels & Resorts. “Hyatt’s interest in our company is a testament to the strength of our business and the dedication of our incredible Playa team. The Playa Board and management team will remain open-minded and continue to act in the best interests of all Playa shareholders.”
A Sweet Space
The all-inclusive space has become a major target and focus by lodging companies. Playa currently owns and/or managers 24 resorts in the Caribbean and Mexico and already works with Hyatt managing eight all-inclusives under Hyatt’s Zilara and Ziva brands, which fall under Hyatt’s Inclusive Collection. In November 2021, Hyatt completed the acquisition of Apple Leisure Group, which included brands under the AMR Collection such as Secrets®Resorts & Spas, Dreams Resorts & Spas and Zoëtry Wellness & Spa Resorts.
“Hyatt purchasing ALG was a courageous and brilliant acquisition and everybody took notice,” Scott Berman, a hospitality consultant and former leader of PwC’s travel and hospitality practice, recently told HOTELS.
More recently, Hyatt announced plans for affiliates of Hyatt and Grupo Piñero to enter into a long-term asset-light strategic joint venture to be headquartered in Palma de Mallorca, Spain, and manage Bahia Principe-branded hotels and resorts and own the Bahia Principe brand. Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program at a later date. The tie-up will expand Hyatt’s Inclusive Collection room portfolio by approximately 30%, Hyatt said.
Not exclusive to Hyatt, major lodging companies are expanding their offerings to make sure that their loyalty members have an option for any occasion or travel need. “At the end of the day, it’s about our loyalty program,” said Javier Coll, global head of growth for Hyatt’s Inclusive Collection. “[Members] demand that our brands be in certain markets and that is a main driver for us to grow in certain destinations.”
Other lodging companies are as bullish on the segment. In July, Marriott opened Marriott Cancun, An All-Inclusive Resort, Marriott Hotels’ first all-inclusive resort. Supporting the opening, it cited data from the Family Travel Association showing that more than 50% of parents are planning trips involving grandparents and children, highlighting a trend toward all-inclusive and options.
In October, Hilton announced the signing of a franchise agreement for the conversion of The Sens Cancun Adults Only All-Inclusive Resort, Tapestry by Hilton. Hilton has 15 all-inclusive resorts, including six in Mexico.
SLS, part of Accor’s Ennismore group, opened its first all-inclusive in November 2024. The SLS Playa Mujeres in Mexico features 18 dining venues, a 20,000 square-foot spa, five pools and a Greg Norman–designed golf course.
The accelerated entry of companies like Marriott and Hilton into the all-inclusive space has also helped to better legitimize a space that has often been associated with a mediocre product. “All-inclusive resorts are often associated with long waits on buffet lines with mediocre food, watered-down drinks and lackluster entertainment. With the growing interest in all-inclusive, travelers are shifting away from those preconceived notions,” said Nicole Tilzer, VP of all-inclusive and resort strategy at Hilton.
A Hyatt acquisition of Playa Hotels & Resorts could present some complications: Playa currently owns and/or manages properties under flags from Hyatt, Hilton, Wyndham Hotels & Resorts, Tapestry Collection by Hilton, Kimpton, The Luxury Collection and others. For example, Kimpton’s first all-inclusive in Mexico, Kimpton Tres Rios, in Playa del Carmen, which opens early in 2025, will be operated by Playa. Kimpton is an IHG Hotels & Resorts brand.
HOTELS reached out to Hyatt, Wyndham and IHG for comment but has yet to receive a response.
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.