Hyatt Hotels Corporation has entered into an agreement to acquire all outstanding shares of Playa Hotels & Resorts NV for $13.50 per share, or approximately $2.6 billion, including approximately $900 million of debt, net of cash. Hyatt is currently the beneficial owner of 9.4% of Playa’s outstanding shares.
“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.”
It was first reported that Hyatt was in talks with Playa on the acquisition on Dec. 23, 2024.
The pending acquisition provides an opportunity to secure long-term management agreements for Hyatt’s luxury all-inclusive Hyatt Ziva and Hyatt Zilara branded properties. It also 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.
“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.”
He 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.”
This pending acquisition marks the next step on a growth journey for Hyatt’s all-inclusive portfolio, including the acquisition of Apple Leisure Group in 2021 and the 2024 completion of a 50/50 strategic joint venture with Grupo Piñero, which added the Bahia Principe Hotels & Resorts portfolio to Hyatt’s Inclusive Collection. The collection currently spans approximately 55,000 rooms across Latin America, the Caribbean and Europe.
Hyatt said it remains committed to its asset-light business model and intends to identify third-party buyers for Playa’s owned properties. Following the close of the transaction, Hyatt anticipates realizing at least $2 billion of proceeds from asset sales by the end of 2027 and expects asset-light earnings to exceed 90% on a pro forma basis in 2027.
At closing, Hyatt expects to fund 100% of the acquisition with new debt financing and, consistent with maintaining its investment grade profile, expects to pay down over 80% of the new debt financing with proceeds from asset sales.
The acquisition is anticipated to close later this year, subject to Playa shareholder and regulatory approval as well as other customary closing conditions.
In connection with the transaction, BDT & MSD Partners is acting as lead financial advisor to Hyatt with Berkadia serving as Hyatt’s real estate advisor. BofA Securities, J.P. Morgan and Wells Fargo are also acting as financial advisors to Hyatt and have also provided fully committed bridge financing in relation to the transaction. Latham & Watkins LLP is Hyatt’s legal advisor.
PJT Partners LP is serving as financial advisor to Playa Hotels & Resorts and Hogan Lovells and NautaDutilh NV are serving as legal counsel.
