In a landmark hotel industry merger, Hyatt buys Playa Resorts in a $2.6 billion acquisition that is already making waves in the hospitality industry. The takeover, expected to be completed by late 2025, positions Hyatt strategically in the all-inclusive resort market.
Strategic Expansion in the All-Inclusive Resort Market
The Playa Hotels & Resorts deal, involving a major string of all-inclusive resorts in the Caribbean and Mexico, has been a topic of hot discussion in recent years for its potential takeover.
Major hospitality brands like Hilton, Marriott, and IHG Hotels & Resorts have shown keen interest in the all-inclusive resort sector, with the Hyatt acquisition now setting a new industry standard.
“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,” noted Mark Hoplamazian, Hyatt’s CEO.
Photo by Upgraded Points
Hotel Industry Mergers: Portfolio Integration Impact
Hyatt’s acquisition of Playa will expand its portfolio and offer more value to its stakeholders. Hyatt already owns nearly a 10% stake in Playa and several properties under the Playa portfolio, including the Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall in Jamaica and Zilara and Ziva properties in the Dominican Republic and Mexico.
The purchase of Playa comes after Hyatt’s recent buying spree, including a significant $2.7 billion Apple Leisure Group acquisition, which added brands like Secrets and Dreams to the Hyatt portfolio. Over the past years, Hyatt has also bought lifestyle brands like The Standard, Me and All, and Dream Hotel Group, along with the luxury and lifestyle booking platform Mr & Mrs Smith.
The Future Outlook of the $2.6 Billion Acquisition
The acquisition of Playa affirms Hyatt’s top-tier status as a leading all-inclusive resort operator among legacy hotel brands. This move follows Hyatt’s recent partnership with Grupo Pinero, the owner of the Bahia Principe Hotels & Resorts and Cayo Levantado Resort brands, which ballooned Hyatt’s all-inclusive resort portfolio by 30%.
With Hyatt evidently expanding its focus towards the all-inclusive resort clientele, this latest development certainly makes the Chicago-based company one to watch in the hospitality industry.
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*Banner photo from Playa Resorts
