Hyatt Expands All-Inclusive Portfolio with $2.6 Billion Acquisition of Playa Hotels & Resorts
Hyatt Hotels Corporation has announced its plans to acquire Playa Hotels & Resorts, further strengthening its position in the all-inclusive resort market. The deal, valued at $2.6 billion, includes approximately $900 million in debt and is expected to close later this year, pending shareholder and regulatory approvals.
This move marks a significant expansion for Hyatt, which already owns a 9.4% stake in Playa. Once the acquisition is finalized, Hyatt will take full control of Playa’s 25 all-inclusive properties across Mexico, the Dominican Republic, and Jamaica.
A Strategic Expansion in the All-Inclusive Market
Playa Hotels & Resorts is a well-established player in the all-inclusive hospitality industry, operating a mix of owned and managed properties under several top brands. The acquisition will allow Hyatt to secure long-term management agreements for properties under its Hyatt Ziva and Hyatt Zilara brands, which are already a key part of Playa’s portfolio.
Beyond its partnership with Hyatt, Playa also operates resorts under brands affiliated with Hilton, Marriott, and Wyndham’s Alltra brand. It remains unclear what will happen to these agreements following the acquisition. Hyatt has not disclosed specific plans regarding these partnerships but has stated that the acquisition will provide an opportunity to expand its distribution channels and offer more benefits to guests through platforms like ALG Vacations and Unlimited Vacation Club.
Selling Assets While Strengthening Hyatt’s Brand
A key aspect of Hyatt’s strategy following this acquisition is its intention to sell off Playa’s owned properties to third-party investors. The company aims to generate at least $2 billion in proceeds from these asset sales by the end of 2027. This move aligns with Hyatt’s broader goal of transitioning into an asset-light business model, a strategy that allows it to focus on hotel management and brand expansion rather than property ownership.
Hyatt expects that by 2027, more than 90% of its earnings will come from asset-light sources, ensuring a stronger financial foundation and long-term growth in the all-inclusive segment.
Building on Past Acquisitions
This deal is the latest in a series of moves by Hyatt to expand its presence in the luxury all-inclusive market. The company acquired Apple Leisure Group in 2021, a major player in all-inclusive vacation experiences, and more recently, entered a joint venture with Grupo Piñero, adding Bahia Principe Hotels & Resorts to its Inclusive Collection.
By acquiring Playa Hotels & Resorts, Hyatt continues to build on its commitment to offering high-quality, all-inclusive experiences and expanding its portfolio in the leisure travel sector.
Hyatt’s Vision for the Future
Commenting on the acquisition, Mark Hoplamazian, President and CEO of Hyatt, emphasized the significance of this deal:
“Hyatt has firmly established itself as a leader in the all-inclusive space, a journey that began in 2013 through an investment in Playa Hotels & Resorts that launched the Hyatt Ziva and Hyatt Zilara brands. We have respected and benefitted 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. 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.”
With this acquisition, Hyatt continues to reinforce its leadership in the all-inclusive sector, positioning itself as a dominant force in the global hospitality industry. Whether through asset sales, strategic partnerships, or an expanded distribution network, Hyatt’s latest move is set to reshape the all-inclusive travel experience for years to come.
