Hyatt Hotels Corporation confirmed an agreement to acquire Playa Hotels & Resorts worth approximately $2.6 billion.
It includes approximately $900 million of debt.
Hyatt is currently the beneficial owner of 9.4% of Playa’s outstanding shares.
Playa’s portfolio spans Mexico, Jamaica and the Dominican Republic
“Hyatt has firmly established itself as a leader in the all-inclusive space through an investment in Playa Hotels & Resorts that launched the Hyatt Ziva and Hyatt Zilara brands,” said Mark Hoplamazian, CEO, Hyatt.
“We have respected and benefitted from Playa’s operating expertise 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.”
The deal will expand Hyatt’s distribution channels, including ALG Vacations and Unlimited Vacation Club, to Playa’s portfolio, offering additional benefits to guests of Playa hotels.
The pending acquisition marks the next step for Hyatt’s all-inclusive portfolio, following the acquisition of Apple Leisure Group in 2021, and a 50/50 strategic joint venture with Grupo Piñero, which added the Bahia Principe Hotels & Resorts portfolio.
Hyatt expects to fund 100% of the acquisition with new debt financing and expects to pay down over 80% of this with proceeds from asset sales, it said.
The acquisition is anticipated to close later this year, subject to Playa shareholder and regulatory approval.
