Hyatt Hotels is making a major move to expand its all-inclusive resort offerings with the acquisition of Playa Hotels & Resorts. The Chicago-based hotel company announced on Monday that it has entered into an agreement to acquire all outstanding shares of Playa or $13.50 per share, or approximately $2.6 billion, including approximately $900 million of debt, net of cash.
Currently, Hyatt is the beneficial owner of 9.4% of Playa’s outstanding shares. The deal will give Hyatt full control of Playa’s portfolio of resorts in Mexico, the Dominican Republic and Jamaica.
Playa’s portfolio consists of resorts in key tourist destinations and the acquisition will allow Hyatt to secure long-term management agreements for its Hyatt Ziva and Hyatt Zilara brands. Hyatt also plans to integrate Playa’s properties into its existing distribution channels, such as ALG Vacations and Unlimited Vacation Club, strengthening its footprint in the all-inclusive market.
“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,” said Mark Hoplamazian, president and CEO of Hyatt. “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.”
To finance the acquisition, Hyatt will take on new debt but expects to pay down over 80% of it through asset sales. The deal is expected to close later this year, pending approval from Playa shareholders and regulatory authorities.
The deal will allow Hyatt to broaden its existing portfolio while adding more value to stakeholders through an expanded management platform for all-inclusive resorts, Hoplamazian added.
This move is part of Hyatt’s broader expansion strategy. In 2021, the company acquired Apple Leisure Group, and earlier this year, it finalized a 50/50 joint venture with Grupo Piñero to bring Bahia Principe Hotels & Resorts into its Inclusive Collection. With the addition of Playa’s properties, Hyatt’s all-inclusive portfolio now spans approximately 55,000 rooms across Latin America, the Caribbean and Europe.
Hyatt remains focused on an asset-light business model and plans to sell Playa’s owned properties to third-party buyers once the deal closes. The company expects to generate at least $2 billion in asset sales by the end of 2027 and anticipates that asset-light earnings will exceed 90% on a pro forma basis by that time.
To finance the acquisition, Hyatt will take on new debt but expects to pay down over 80% of it through asset sales. The deal is expected to close later this year, pending approval from Playa shareholders and regulatory authorities.
BDT & MSD Partners is serving as Hyatt’s lead financial advisor, with Berkadia acting as its real estate advisor. BofA Securities, J.P. Morgan and Wells Fargo are also advising Hyatt and have provided fully committed bridge financing. Latham & Watkins LLP is handling legal advisory services for Hyatt.
