Hyatt to Acquire Playa Hotels & Resorts for $2.6 Billion

Hyatt Hotels Corporation has announced its acquisition of Playa Hotels & Resorts N.V. for $2.6 billion, including debt. This move significantly expands Hyatt’s presence in the all-inclusive resort sector, particularly in Mexico, the Dominican Republic, and Jamaica, where Playa operates. 

Hyatt, which already held a 9.4% stake in Playa, will pay $13.50 per share to acquire all outstanding shares. The deal is expected to close later this year, pending shareholder and regulatory approvals. The acquisition aligns with Hyatt’s strategy to grow its all-inclusive offerings, building on previous investments such as the acquisition of Apple Leisure Group in 2021 and a joint venture with Grupo Piñero. 

Playa’s portfolio includes 24 resorts with over 8,600 rooms, including Hyatt Ziva and Hyatt Zilara branded properties that Playa already operates. Hyatt plans to maintain an asset-light business model by selling Playa’s owned properties while retaining management contracts. 

The company aims to generate at least $2 billion from these asset sales by the end of 2027 and expects asset-light earnings to exceed 90% on a pro forma basis in 2027. This strategy allows Hyatt to focus on management and franchising, reducing capital intensity while expanding its brand presence.

Industry analysts view this acquisition as part of a broader trend of consolidation in the all-inclusive resort sector, driven by increasing demand for luxury travel and enhanced loyalty program offerings. By integrating Playa’s resorts into its portfolio, Hyatt aims to offer more points redemption opportunities and cater to the growing demand for all-inclusive experiences.