On Monday, 10 February, Hyatt has announced it will be acquiring Playa Hotels & Resorts, an owner and operator of all-inclusive resorts in Mexico, the Dominican Republic and Jamaica. The deal is set to be worth approximately $2.6 billion. Hyatt, who already owns 9.4% of Playa’s shares, will be buying all remaining outstanding shares for $13.5 per share. The $2.6 billion deal includes approximately $900 million of debt.
“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 Chief Executive Officer, 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. 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.”
Playa Hotels & Resorts is active in Mexico, the Dominican Republic and Jamaica, where it operates a total of 24 locations. Some of its most popular resorts include the Wyndham Alltra in Playa del Carmen (Mexico), the Jewel Grande Resort & Spa in Montego Bay (Jamaica) and Seadust Cancun Family Resort in Cancun (Mexico). According to Hyatt, the acquisition will allow long-term management deals for its luxury Zilara and Ziva brands.
“Hyatt remains committed to its asset-light business model and intends to identify third-party buyers for Playa’s owned properties. Following the close of the transaction, Hyatt anticipates realizing at least $2.0 billion of proceeds from asset sales by the end of 2027 and expects asset-light earnings to exceed 90% on a pro forma basis in 2027”, the press release states. “At closing, Hyatt expects to fund 100% of the acquisition with new debt financing and, consistent with maintaining its investment grade profile, expects to pay down over 80% of the new debt financing with proceeds from asset sales.”
The acquisition is currently scheduled to close by the end of 2025, when Hyatt will share more details about the transaction. With the Playa acquisition, Hyatt is yet again expanding its portfolio. In 2021 the company also acquired Apple Leisure Group and, in 2024, it completed a 50/50 joint venture with Grupo Piñero, obtaining the Bahia Principe Hotels & Resorts brands in Latin America, the Caribbean and Europe.
