Hyatt Ziva Los Cabos. Photo Credit: Hyatt Hotels Corp.
Hyatt Hotels Corp. has inked an agreement to acquire all outstanding shares of Playa Hotels & Resorts, which owns and operates all-inclusive resorts in Mexico, the Dominican Republic and Jamaica. Hyatt already has a 9.4 percent stake in the company, an investment that began more than a decade ago and led to the launch of Hyatt's Ziva and Zilara all-inclusive brands.
"We have respected and benefited 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," Hyatt president and CEO Mark Hoplamazian said in a statement. "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."
This $2.6 billion deal builds on Hyatt's significant investments in the all-inclusive resort space, including a $2.7 billion acquisition of the Apple Leisure Group in 2021 that brought the Dreams, Secrets, Breathless and Zoëtry brands into the Hyatt portfolio. Last year the company also launched a strategic joint venture with Grupo Piñero that added the Bahia Principe Hotels & Resorts properties to Hyatt's Inclusive Collection.
Playa Hotels portfolio
Playa's portfolio currently consists of 23 resorts, including those operated under Hyatt's Zilara and Ziva brands. Half of those properties are in Mexico, with seven in the Dominican Republic and four in Jamaica. Ten of the resorts currently are operating under the Hilton, Wyndham or Kimpton names; a Hyatt spokesperson noted that more details will be provided about specific plans once the transaction closes.
Hyatt intends to find third-party buyers for the resorts that currently are owned by Playa, consistent with the company's asset-light strategy and the focus on management and operations. The company projects at least $2 billion in proceeds from these sales by the end of 2027. The acquisition also provides Hyatt with the opportunity to secure long-term management agreements for the Ziva and Zilara properties already in the portfolio.
The deal is expected to close later this year, subject to Playa shareholder and regulatory approval, and other closing conditions.