CHICAGO, Illinois—Hyatt Resorts Company introduced that it has entered into an settlement to amass all excellent shares of Playa Resorts & Resorts N.V. for $13.50 per share, or roughly $2.6 billion, together with roughly $900 million of debt, internet of money. Playa is an proprietor and operator of all-inclusive resorts in Mexico, the Dominican Republic, and Jamaica, and Hyatt is at the moment the useful proprietor of 9.4 p.c of Playa’s excellent shares.
“Hyatt has firmly established itself as a pacesetter within the all-inclusive area, a journey that started in 2013 by means of an funding in Playa Resorts & Resorts that launched the Hyatt Ziva and Hyatt Zilara manufacturers,” stated Mark Hoplamazian, president and CEO, Hyatt. “Now we have revered and benefitted from Playa’s working experience and excellent visitor expertise supply for years by means of their possession and administration of eight of our Hyatt Ziva and Hyatt Zilara lodges. This pending transaction permits us to broaden our portfolio whereas offering extra worth to all of our stakeholders by means of an expanded administration platform for all-inclusive resorts.”
Playa’s portfolio contains resorts in places and strategic markets. The pending acquisition supplies a possibility to safe long-term administration agreements for Hyatt’s luxurious all-inclusive Hyatt Ziva and Hyatt Zilara branded properties. It additionally will broaden Hyatt’s distribution channels, together with ALG Holidays and Limitless Trip Membership, to Playa’s portfolio, providing extra advantages to company of Playa lodges.
This pending acquisition marks the following step on a progress journey for Hyatt’s all-inclusive portfolio, together with the acquisition of Apple Leisure Group in 2021, and the 2024 completion of a 50/50 strategic three way partnership with Grupo Piñero, which added the Bahia Principe Resorts & Resorts portfolio to Hyatt’s Inclusive Assortment, which at the moment spans roughly 55,000 rooms throughout Latin America, the Caribbean, and Europe.
Hyatt stays dedicated to its enterprise mannequin and intends to establish third-party patrons for Playa’s owned properties. Following the shut of the transaction, Hyatt anticipates realizing a minimum of $2.0 billion of proceeds from asset gross sales by the top of 2027 and expects asset-light earnings to exceed 90 p.c on a professional forma foundation in 2027.
At closing, Hyatt expects to fund 100% of the acquisition with new debt financing and, according to sustaining its funding grade profile, expects to pay down over 80 p.c of the brand new debt financing with proceeds from asset gross sales.
The acquisition is anticipated to shut later this 12 months, topic to Playa shareholder and regulatory approval in addition to different customary closing circumstances.
In reference to the transaction, BDT & MSD Companions is appearing as monetary advisor to Hyatt with Berkadia serving as Hyatt’s actual property advisor. BofA Securities, J.P. Morgan, and Wells Fargo are additionally appearing as monetary advisors to Hyatt and have additionally offered bridge financing in relation to the transaction. Latham & Watkins LLP is Hyatt’s authorized advisor.
