Hyatt Hotels Corp. is making another big move into the all-inclusive market with a deal to buy Playa Hotels & Resorts for USD$2.6 billion (CAD$3.73 billion).
Playa currently owns or manages 24 top resorts in Mexico, Jamaica and the Dominican Republic with 8,627 rooms. Many of those have Hilton, Wyndham, IHG or Marriott flags, as well as Hyatt. It’s not clear what will happen with those properties.
The play for Playa comes a few weeks after Hyatt announced it was forming a 50/50 strategic joint venture with Grupo Piñero, which added the Bahia Principe Hotels & Resorts portfolio to Hyatt’s Inclusive Collection. That collection currently spans approximately 55,000 rooms across Latin America, the Caribbean and Europe.
"The acquisition follows rising interest in upscale and luxury offerings outside the U.S. as more Americans take advantage of a stronger dollar," Reuters said.
“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 and Chief Executive Officer, 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.”
“Playa’s portfolio includes high-quality resorts in iconic locations and strategically important markets,” Hyatt said in a news release. “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.
“Hyatt is well-positioned to drive value creation through complementary business segments and further optimize its existing all-inclusive infrastructure in Mexico and the Caribbean,” officials said.
“This pending acquisition marks the next step on a significant 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.”
Hyatt currently owns 9.4% of Playa’s outstanding shares.
