Hyatt Acquiring Resort Operator Playa Hotels for $2.6B

Hyatt is reaching into Mexico and the Caribbean in the company’s latest expansion push.

Hyatt announced on Monday it is acquiring Playa Hotels & Resorts for approximately $2.6 billion. The company agreed to acquire all outstanding shares of the resort operator for $13.50 per share, a 40 percent premium on the stock’s closing price on Dec. 20, when talks of a deal began, according to CNBC.

Hyatt already owned a 9.4 percent stake in Playa, which counts a portfolio spanning 24 luxury properties in Mexico, Jamaica and the Dominican Republic.

“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,” Hyatt CEO Mark Hoplamazian said in a statement.

The deal is expected to close later this year. In the hours after the announcement, Hyatt’s stock was down 0.6 percent to $163.07.

Despite the acquisition, Hyatt says it doesn’t plan on growing its physical footprint as it pursues an asset-light approach predicated on managing and franchising properties owned by others. It instead plans to find third-party buyers for the properties and sell them by the end of 2027, recouping at least $2 billion in proceeds.

Hyatt’s partnership with Playa dates back to 2013 when it first invested in the resort company. That helped bring about two Hyatt brands: Hyatt Ziva and Hyatt Zilara. The deal with Playa will help secure long-term management agreements with hotels in those two brands’ portfolios.

This is the latest acquisition in Hyatt’s asset-light expansion. Last year, the company acquired the Standard International brand for up to $335 million, gaining the Standard’s management, franchise and license contracts. Similarly, Hyatt has acquired brands such as Alila and Dream Hotels while offloading physical properties.

As of the third quarter, Hyatt’s portfolio spans more than 1,350 hotels and all-inclusive properties in 79 countries across six continents.