Hyatt Deal Values Playa Hotels at $2.6 Billion
Photo Credit: The Hyatt Zilara Rose Hall in Montego Bay, Jamaica. Hyatt Corporation
Skift Take
Hyatt Hotels is acquiring Playa Hotels & Resorts for $2.6 billion, funding it largely with new debt and asset sales, strengthening its all-inclusive presence in the Caribbean and Mexico.
Hyatt Hotels announced an agreement with Playa Hotels & Resorts for PLYA to be acquired by H for $13.50 per share in cash. The well-telegraphed deal valued PLYA at $2.6 billion including $900 million in debt, net of cash. On a per-room basis, it works out to $448,000 per room. H already has ownership of a 9.4% stake in PLYA. H expects to fund most of the acquisition with new debt and then pay it down with asset sale proceeds. H hopes to get $2 billion from asset sales by the end of 2027. Clearly, if that works out, this is an extremely cheap acquisition for H and will have a very low multiple. While this increases H’s exposure to the Caribbean and Mexico regions, it also increases their control of Ziva and Zilara brands and adds to their all-inclusive model. Read more on the deal at Skift (free for DLR subscribers).
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