- Hyatt is acquiring Playa Hotels & Resorts for $2.6B, paying $13.50 per share to expand its all-inclusive resort footprint.
- Playa owns and manages Hyatt Ziva and Hyatt Zilara resorts in the Dominican Republic, Jamaica, and Mexico.
- Hyatt plans to sell Playa’s owned properties and expects to raise at least $2B from asset sales by 2027.
Hyatt Hotels Corp. (H) is doubling down on its presence in the all-inclusive resort market with the $2.6B acquisition of Playa Hotels & Resorts (PLYA), per Bloomberg.
The deal strengthens Hyatt’s portfolio in key Caribbean destinations, including the Dominican Republic and Jamaica, where Playa operates several Hyatt Ziva and Hyatt Zilara resorts.
Some Context
Hyatt invested in Playa since 2013 and already owned 9.4% of its outstanding shares. The acquisition builds on Hyatt’s 2021 purchase of Apple Leisure Group and its JV with Grupo Piñero, further expanding the company’s influence in the all-inclusive sector.
“We have respected and benefited from Playa’s operating expertise and outstanding guest experience delivery for years,” Hyatt CEO Mark Hoplamazian said in a statement.
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Shifting Strategy
Unlike recent deals by competitors such as Hilton and Marriott, Hyatt’s Playa acquisition adds owned real estate to its portfolio—a notable move at a time when most hospitality companies are shedding assets.
Hyatt reassured investors that it remains committed to its asset-light strategy and will sell many of Playa’s owned properties to third-party buyers. The company expects to generate at least $2B from asset sales by 2027, helping to offset the debt used to fund the purchase.
Still, analysts have raised concerns. Jefferies analysts noted that Playa’s portfolio includes non-Hyatt branded properties, which will require negotiations and potential rebranding. Baird analysts also questioned why Hyatt would invest heavily in real estate while other hotel giants focus on franchising and management contracts.
What’s Next
Hyatt will finance the acquisition entirely through new debt, with plans to pay down more than 80% of that debt through asset sales. The company is expected to report its Q4 earnings on Feb. 13, which could provide more details on its financial strategy.
With the deal expected to close later this year, Hyatt’s success in selling Playa’s properties will be key to maintaining its long-term asset-light approach while strengthening its position in the growing all-inclusive resort market.
