Hyatt Wants to Acquire Playa Hotels & Resorts
Hyatt Hotels today disclosed it has executed an exclusivity agreement with Playa Hotels & Resort under which Playa has agreed to negotiate exclusively with Hyatt for a potential acquisition of Playa by Hyatt.
“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,” said Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt. “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.”
Hyatt says in a press release that there can be no assurances that any transaction will result from Hyatt’s exclusive discussions with Playa, or on what terms. Hyatt does not intend to comment further on these discussions unless and until a definitive agreement has been fully executed.
Playa Hotels & Resorts also confirmed the news. Playa says that the exclusivity agreement will remain in place until the earlier of the execution of a definitive agreement for such transaction or 11:59 p.m. New York City time on February 3, 2025.
“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 D. 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.”
Hyatt has been aggressive about adding more all-inclusives and other brands to its portfolio in recent years. It has acquired brands such as Alila, Thompson Hotels, the all-inclusive portfolio of Apple Leisure Group, Mr & Mrs Smith, Standard Hotels, and me and all hotels.
Playa Hotels & Resorts
Playa currently owns and/or manages a total portfolio consisting of 24 resorts (9,027 rooms) under the following brands: Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Tapestry Collection by Hilton, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts and The Luxury Collection.
These all-inclusive resorts are located in Dominican Republic, Mexico and Jamaica. As you can probably tell by the names of the resorts, they belong to other popular programs such as Hilton, IHG and Wyndham, as well as Hyatt.
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