Hyatt considers acquiring Playa Hotels & Resorts amid industry expansion

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Hyatt considers acquiring Playa Hotels & Resorts amid industry expansion

Research

Ellie Nan Storck Managing editor | The Points Guy

By Sky Industry News

Dec 23, 2024

Hyatt, a major player in the hotel industry, is reportedly in discussions with Playa Hotels & Resorts regarding "potential strategic alternatives," which may include an acquisition. Playa operates all-inclusive resorts across the Caribbean and Mexico and has been a topic of speculation for potential takeovers by large hotel brands such as Hyatt, Hilton, Marriott, and IHG Hotels & Resorts.

Currently, Hyatt holds nearly a 10% stake in Playa and includes properties like the Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall in Jamaica within its portfolio. A possible acquisition of Playa would follow several significant purchases by Hyatt over recent years.

Hyatt expanded its presence in the all-inclusive resort market with a $2.7 billion acquisition of Apple Leisure Group, bringing brands like Secrets and Dreams under its umbrella. The company has also acquired lifestyle brands including The Standard, Me and All, Dream Hotel Group, and Mr & Mrs Smith.

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A move to acquire Playa would strengthen Hyatt's position as a leader among legacy hotel brands in the all-inclusive sector. This comes shortly after Hyatt's partnership with Grupo Pinero, which increased its all-inclusive offerings by 30%.

Mark Hoplamazian, CEO of Hyatt, stated: "Playa has been a valuable partner for many years... Strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams for Hyatt." He emphasized that any strategic moves would align with their asset-light business model.

While the outcome of these talks remains uncertain, Hyatt noted it "does not intend to comment further on these discussions unless and until a definitive agreement has been fully executed." The expansion into all-inclusive resorts is evident as competitors like Marriott, Hilton, IHG, and Wyndham are also involved with some of Playa's properties.

The developments around this potential acquisition will likely be closely watched by industry observers as each company aims to maintain or expand its presence in the growing all-inclusive resort market.