Hyatt To Expand In Luxury Market With $2.6 Bln Playa Acquisition

(RTTNews) - Hyatt Hotels (H) Monday announced that it has plans to acquire Playa Hotels & Resorts for approximately $2.6 billion, including debt, in a move to expand its footprint in Mexico and the Caribbean.

The acquisition aligns with Hyatt's strategy to strengthen its presence in the high-end all-inclusive market, driven by growing international travel demand.

Playa's portfolio includes 24 luxury resorts across Mexico, Jamaica, and the Dominican Republic. Hyatt, which already holds a 9.4% stake in the company, is offering $13.50 per share—a 40.5% premium over Playa's closing price before news of the deal emerged.

Following the announcement, Playa's shares gained 2%, while Hyatt's stock remained stable. The transaction is anticipated to be finalized later this year, subject to regulatory and Playa shareholder approval.

As part of its asset-light approach, Hyatt intends to divest Playa's owned properties to third-party buyers, expecting to generate $2 billion in asset sales by 2027. At the same time, the company aims to retain long-term management contracts for key resorts, integrating them into its existing vacation platforms, including ALG Vacations and Unlimited Vacation Club.

Hyatt plans to finance the purchase through new debt, with a goal of repaying over 80% using proceeds from asset sales. Analysts view the acquisition as a strategic win, though challenges remain in converting non-Hyatt properties and executing its asset-light transition.