Hyatt Hotels, headquartered in Chicago, Illinois, announced on Monday that it will acquire Playa Hotels & Resorts for approximately US $2.6 billion, including $900 million in debt. 

The purchase is part of the Chicago-based hotel group’s plan to expand its presence in Mexico and the Caribbean. 

“This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts,” Hyatt CEO Mark Hoplamazian said in a press release. 

Playa, based in Fairfax, Virginia, currently owns or operates 24 luxury, all-inclusive resorts across Mexico, Jamaica and the Dominican Republic.

Hyatt already holds a 9.4% stake in Playa and offered to pay the company $13.50 per share for the purchase, which it expects to close by the end of the year, pending shareholder and regulatory approval. 

The company will finance the acquisition with new debt financing. It aims to choose third-party buyers for the properties owned by Playa to raise at least $2 billion from the sale of assets by 2027.  

Hyatt’s asset-light business model means the operator manages or franchises most of its properties rather than owning them. It plans to repay its debt using this model.

Playa’s portfolio includes some resorts that are managed by competitors, such as Hilton Worldwide, Marriott International, Wyndham and the United Kingdom-based InterContinental Hotels Group’s Kimpton brand.  

It remains uncertain whether Hyatt will be permitted to convert non-Hyatt branded hotels to the Hyatt name if it sells the properties, as reported by Reuters.  

Hyatt entered the all-inclusive market in 2013 and has since expanded its portfolio significantly. In 2021, the U.S. hotel operator acquired Apple Leisure Group, and in 2024, it completed a joint venture with Grupo Piñero, which added Bahia Principe Hotels & Resorts to its all-inclusive offerings. This provided Hyatt with a further 55,000 all-inclusive rooms across Latin America, the Caribbean and Europe.

As of September 30, 2023, Hyatt’s portfolio includes more than 1,300 hotels and all-inclusive properties in 76 countries across six continents. 

With reports from Reuters and The Wall Street Journal