Hyatt Expands in Caribbean with Playa Acquisition

Hyatt Hotels has announced its acquisition of Playa Hotels & Resorts for approximately $2.6 billion, marking a significant expansion in the all-inclusive luxury resort market. The deal, offering a 40% premium to Playa's shareholders, is part of Hyatt's strategy to expand its international footprint, particularly in Mexico, Jamaica, and the Dominican Republic. This acquisition will enable Hyatt to secure long-term management agreements for its luxury brands, Zilara and Ziva, while incorporating Playa's 24 properties into its portfolio. Hyatt plans to fund the acquisition through new debt financing, intending to pay off most of it by selling some of Playa's properties. This move aligns with Hyatt's asset-light approach, focusing on managing and franchising rather than owning properties. The acquisition is expected to close later this year, pending regulatory and shareholder approval, and is anticipated to boost tourism in the Caribbean and Mexico.