Hyatt Hotels said Monday it’s in exclusive talks to potentially acquire Playa Hotels & Resorts, a move that would significantly expand its presence in the upscale all-inclusive resort market across the Caribbean and Mexico.
The announcement comes after Playa’s board evaluated multiple opportunities to maximize shareholder value, engaging with several potential buyers.
No purchase price was publicly proposed, and the companies declined an immediate request for further comment on the talks.
“This would be a highly complementary acquisition for Hyatt,” said Alan Woinski, editor of Skift’s Daily Lodging Report. “They already work with Playa on a few Hyatt resorts, but this would give Hyatt additional locations in resort areas, more inroads into all-inclusive and potentially a new customer base for the company to target.”
Mark Hoplamazian, president and CEO of Hyatt, said in a statement: “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.
“Should Hyatt be the buyer, we see their course of action being converting the all-inclusive hotels that are not currently Hyatt branded to a Hyatt brand and then selling-off the real estate,” wrote Patrick Scholes and Gregory Miller of Truist Securities in a flash report. “We speculate the real estate could be sold-off over time or possibly via a pre-arranged sale concurrent with the possible acquisition of Playa.”
Playa Chairman and CEO Bruce Wardinski called Hyatt’s interest “a testament to the strength of our business.”
All-Inclusive Resorts as Hot Segment
Playa operates all-inclusive resorts in Mexico and the Caribbean. A potential acquisition would expand Hyatt’s presence in this growing segment. Hyatt in 2021 bought Apple Leisure Group in a $2.7 billion deal.
Earlier this year, Hyatt entered a joint venture with Spanish tourism group Grupo Piñero to add 23 resorts.
Other major hotel chains are aggressively expanding their all-inclusive resort portfolios. Marriott International, leading the charge, has grown from one to 30 all-inclusive properties and has begun rolling out its first Ritz-Carlton and W Hotel all-inclusive resorts. Moves included a transformation of the Puerto Vallarta Resort & Spa into an all-inclusive format.
Since the pandemic, Hilton has increased its Caribbean and Latin American all-inclusive footprint by 75%.
Industry momentum continues with IHG partnering with Iberostar Hotels & Resorts to add 70 properties, and Accor’s joint venture Ennismore targeting 50 resorts in three years.
Playa, a resort operator that trades on the Nasdaq stock exchange, has retained PJT Partners as financial advisor and Hogan Lovells as legal counsel.
“For Playa shareholders, it has been a rocky last few years with a lot of volatility, but if this deal goes forward, it will most likely result in Playa shareholders getting a new high share price,” Woinski said.
The talks run until February 3, and the companies cautioned that a deal is not guaranteed.
NOTE: This story was updated to include quotes from Truist analysts and Daily Lodging Report’s editor, and to add context about other hotel group activities.
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