Hyatt Hotels has inked an exclusivity agreement with Playa Hotels & Resorts under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives, which may include its purchase by Hyatt.
Such a merger would significantly expand Hyatt’s presence in the all-inclusive resort market in the Caribbean and Mexico. Playa operates two dozen resorts with more than 8,600 rooms across Mexico, Jamaica and the Dominican Republic, under brands including Hyatt, Hilton and Wyndham. Hyatt’s portfolio currently includes more than 1,350 hotels and all-inclusive properties in 79 countries.
PJT Partners LP is serving as financial advisor to Playa Hotels & Resorts and Hogan Lovells is serving as legal counsel.
Hyatt already owns 9.99 per cent of Playa shares. The exclusivity agreement between the two companies will last either until a deal has been made or until February 3.
What they said
Mark Hoplamazian, president & CEO of Hyatt said: "Playa has been a valuable partner for many years and owns a premier portfolio of high-quality, high-end all-inclusive resorts in iconic locations and key markets across the Caribbean and Mexico. Strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams for Hyatt. We remain steadfastly committed to our asset-light business model and if this process continues, we will continue to map out a clear path for an asset-light outcome for any strategic alternatives we undertake."
Bruce Wardinski, chair & CEO of Playa Hotels & Resorts added: "We are pleased to enter into exclusive discussions with Hyatt regarding potential strategic options. Hyatt's interest in our company is a testament to the strength of our business and the dedication of our incredible Playa team. Our Board and management team regularly review our structure, strategy and opportunities to enhance shareholder value and will remain open-minded."