| Key Points: – Hyatt to acquire Playa Hotels & Resorts for $2.6 billion, including $900 million in debt. – The deal expands Hyatt’s all-inclusive footprint across Mexico, the Dominican Republic, and Jamaica. – Hyatt plans to maintain an asset-light model by selling Playa’s owned properties post-acquisition. |
Hyatt Hotels Corporation (NYSE: H) has announced a definitive agreement to acquire Playa Hotels & Resorts N.V. (NASDAQ: PLYA) in a transaction valued at approximately $2.6 billion, including $900 million in debt. This move solidifies Hyatt’s dominance in the all-inclusive resort sector while expanding its footprint across key markets in Mexico, the Dominican Republic, and Jamaica.
Since its initial investment in Playa in 2013, Hyatt has leveraged its relationship to establish the Hyatt Ziva and Hyatt Zilara brands. Playa currently owns and operates eight of Hyatt’s all-inclusive resorts, and this acquisition will allow Hyatt to take full control of these properties, securing long-term management agreements and reinforcing its presence in the luxury all-inclusive space.
“Hyatt has firmly established itself as a leader in the all-inclusive space,” said Mark Hoplamazian, President and CEO of Hyatt. “This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts.”
With Playa’s diverse portfolio of high-end resorts, the acquisition enhances Hyatt’s distribution channels, incorporating Playa’s properties into Hyatt’s expansive network. Hyatt’s ALG Vacations and Unlimited Vacation Club will further drive guest engagement and maximize revenue potential across the brand’s growing all-inclusive segment.
Hyatt’s latest acquisition aligns with its aggressive growth strategy in the all-inclusive segment. The company previously acquired Apple Leisure Group in 2021 and completed a joint venture with Grupo Piñero in 2024, adding the Bahia Principe Hotels & Resorts portfolio to its Inclusive Collection. Hyatt now boasts a formidable presence in Latin America, the Caribbean, and Europe, with approximately 55,000 rooms across its all-inclusive brands.
Despite the acquisition, Hyatt remains committed to its asset-light business model. The company plans to sell Playa’s owned properties and expects to generate at least $2.0 billion from asset sales by 2027. Hyatt anticipates that asset-light earnings will exceed 90% on a pro forma basis by that time.
Hyatt intends to fund the acquisition entirely through new debt financing and aims to pay down over 80% of the new debt with proceeds from asset sales. The deal is expected to close later this year, subject to regulatory and Playa shareholder approval.
The transaction has received backing from leading financial institutions, with BDT & MSD Partners serving as lead financial advisor to Hyatt. Berkadia is acting as Hyatt’s real estate advisor, while BofA Securities, J.P. Morgan, and Wells Fargo have provided fully committed bridge financing.
With this acquisition, Hyatt continues to reinforce its leadership in the luxury all-inclusive market, ensuring greater value for guests, stakeholders, and investors alike.
