Hyatt Hotels Corp. has officially closed the $2.6 billion deal to acquire Playa Hotels & Resorts, an all-inclusive resort developer, owner and operators in key Caribbean and Latin American markets.
The acquisition includes 15 Playa-owned and managed all-inclusive resorts in Mexico, the Dominican Republic and Jamaica, according to a Hyatt news release. Eight of these resorts were already a part of the Hyatt system, branded as Hyatt Ziva and Hyatt Zilara properties.
“Playa’s all-inclusive management platform complements Hyatt’s global scale and brand strength, enabling us to deliver compelling experiences for guests and members while driving strong performance for owners,” Mark Hoplamazian, Hyatt's president and CEO, said in the news release.
Originally announced in February, the deal priced Playa’s shares a $13.50 per share and included the assumption of $900 million of debt. Hyatt said it will provide additional financial information about the transaction at its upcoming second-quarter earnings call.
Hyatt's initial tender offer was set to expire on April 25 but was extended twice. Hyatt originally announced its intention to sell off the Playa-owned real estate with a target of $2 billion in asset sales by the end of 2027. Earlier this month, Hyatt reported its progress clearing regulatory hurdles, including receiving all required approvals from Mexico’s Ley Federal de Competencia Económica.
The collaboration between the two companies began in 2013 with the brand launches of Hyatt Ziva and Hyatt Zilara and deepened when Hyatt acquired Apple Leisure Group in 2021. Last year, Hyatt again expanded its portfolio through a strategic joint venture with Grupo Piñero for Bahia Principe Hotels & Resorts.
“Playa has spent nearly two decades building a reputation for delivering outstanding all-inclusive experiences,” said Bruce Wardinski, departing chairman and CEO of Playa Hotels & Resorts. “This acquisition is a natural evolution of our longstanding relationship with Hyatt, and we’re confident these outstanding resorts will continue to flourish under its leadership.”
In May, during Hyatt’s first-quarter earnings call, Hoplamazian said the company issued $1 billion of senior notes and closed on a $1.7 billion delayed draw term loan — with the net proceeds from the senior notes offering and future proceeds to be drawn from the new term loan to finance the Playa deal.