SHERIDAN, WYOMING – Feb. 12, 2025 – Hyatt Hotels Corporation has announced it has entered into a definitive agreement to acquire all outstanding shares of Playa Hotels & Resorts NV for $13.50 per share, or approximately $2.6 billion, inclusive of approximately $900 million of debt, net of cash. Hyatt currently holds a 9.4% beneficial ownership stake in Playa’s outstanding shares.
Leadership Commentary on the Acquisition
“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/CEO, 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.”
The initial reports of Hyatt’s discussions with Playa regarding the acquisition surfaced on Dec. 23, 2024.
Strategic Rationale for the Acquisition
This pending acquisition presents Hyatt with the opportunity to secure long-term management agreements for its luxury all-inclusive Hyatt Ziva and Hyatt Zilara branded properties. Furthermore, it will broaden Hyatt’s distribution channels, incorporating ALG Vacations and Unlimited Vacation Club, extending these benefits to guests of Playa hotels.
“We are pleased to enter into this agreement with Hyatt and look forward to delivering the many benefits of the transaction to Playa’s shareholders, guests, employees and other stakeholders,” said Bruce D. Wardinski, chairman/CEO, Playa Hotels & Resorts. “Following a deliberate and comprehensive review of opportunities, the Playa board concluded that the proposed transaction with Hyatt is in the best interest of the company. As a result of our robust process and engagement with a number of potential counterparties, we are confident that this transaction maximizes shareholder value. The transaction will deliver to Playa shareholders a 40% premium to the company’s unaffected stock price prior to the disclosure of exclusive discussions with Hyatt.”
A Testament to a Strong Partnership
Wardinski continued, “We have a longstanding partnership with Hyatt and their support has been instrumental to Playa’s success. The transaction is a testament to the strength of our portfolio and management platform, the remarkable dedication of our team and the incredible value we provide our guests. The combination of Playa’s premier beachfront luxury properties, our exceptional resort staff’s Service from the Heart and Hyatt’s world-class brand and operational excellence has redefined the all-inclusive experience for discerning travelers. We are pleased that Playa’s remarkable resorts will be in excellent hands going forward, continuing to delight guests.”
Growth Trajectory of Hyatt’s All-Inclusive Portfolio
This pending acquisition marks the latest step in the expansion of Hyatt’s all-inclusive portfolio, which includes the acquisition of Apple Leisure Group in 2021 and the 2024 completion of a 50/50 strategic joint venture with Grupo Piñero, adding the Bahia Principe Hotels & Resorts portfolio to Hyatt’s Inclusive Collection. The collection currently encompasses approximately 55,000 rooms across Latin America, the Caribbean, and Europe.
Financial Implications and Asset-Light Strategy
Hyatt has reaffirmed its commitment to its asset-light business model and plans to identify third-party buyers for Playa’s owned properties. Following the transaction's completion, Hyatt anticipates generating at least $2 billion in proceeds from asset sales by the end of 2027 and projects asset-light earnings to exceed 90% on a pro forma basis in 2027.
Hyatt expects to finance 100% of the acquisition with new debt financing at closing. Consistent with maintaining its investment-grade profile, Hyatt anticipates repaying over 80% of the new debt financing with proceeds from asset sales.
Transaction Timeline and Approvals
The acquisition is expected to close later this year, contingent upon Playa shareholder and regulatory approvals, as well as other customary closing conditions.
Advisors
BDT & MSD Partners served as the lead financial advisor to Hyatt, with Berkadia acting as Hyatt’s real estate advisor. BofA Securities, J.P. Morgan, and Wells Fargo also acted as financial advisors to Hyatt and provided fully committed bridge financing for the transaction. Latham & Watkins LLP served as Hyatt’s legal advisor.
PJT Partners LP served as financial advisor to Playa Hotels & Resorts, and Hogan Lovells and NautaDutilh NV served as legal counsel.
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