Hyatt is investing heavily in the all-inclusive resort industry with its $2.6 billion acquisition of Playa Hotels and Resorts. The deal, expected to close later this year, will see Hyatt pay $13.50 per share to Playa shareholders, a premium of around 40% compared to December’s closing price.
The move is part of Hyatt’s growth strategy, with the company already operating over 1,350 hotels and resorts across 79 countries. Playa, on the other hand, operates two dozen resorts with over 8,600 rooms in Mexico, Jamaica, and the Dominican Republic.
Hyatt CEO Mark Hoplamazian sees this acquisition as a “next step” for the company’s all-inclusive portfolio, which has already established itself as a leader in the space. The deal will be funded through new debt financing, with Hyatt planning to sell some of Playa’s properties to pay off around 80% of the new debt.
The acquisition is expected to generate around $2 billion for Hyatt, primarily from the sale of Playa’s properties. Hyatt shares rose 0.6% on Monday morning, while Playa shares gained around 2%.
Source: https://www.investopedia.com/hyatt-bets-on-growth-of-all-inclusives-with-playa-hotels-acquisition-8788782