Hyatt Hotels Corp. has entered into exclusive negotiations with all-inclusive resort operator Playa Hotels & Resorts regarding “potential strategic alternatives,” including a possible acquisition of Playa.
Hyatt currently owns 9.99% of Playa’s outstanding shares.
Playa currently owns and/or manages 24 resorts across Mexico, Jamaica and the Dominican Republic. The properties are flagged under several brands: Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Tapestry Collection by Hilton, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts and Marriott’s Luxury Collection.
“Playa has been a valuable partner for many years, is one of the world’s strongest operators of all-inclusive resorts and owns a premier portfolio of high-quality, high-end all-inclusive resorts in iconic locations,” said Hyatt CEO Mark Hoplamazian in a statement.
He added that “strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams for Hyatt.”
While discussions are ongoing, Hyatt said it has filed an amendment to its Schedule 13D with the SEC as required by federal securities laws.
Both Hyatt and Playa said they will not provide further comments until a definitive agreement is reached, while emphasizing that there are no guarantees that the discussions will result in a transaction.
The exclusivity agreement between the two companies runs through Feb. 3.
Hyatt’s portfolio has more than 1,350 hotels and resorts across 79 countries. The company has several all-inclusive brands within its Inclusive Portfolio, including Hyatt Ziva, Hyatt Zilara, Zoetry, Secrets, Dreams, Hyatt Vivid, Sunscape and Alua. (https://www.travelweekly.com/Travel-News/Hotel-News/Hyatt-in-talks-with-Playa?ct=carib)
