Hyatt Deal Values Playa Hotels at $2.6 Billion

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).

The Wall Street Journal published a long article on Soho House, describing it as a battle of feuding billionaires with a takeover offer and complaints about service. The article gave the background on how promising the business model was before Wall Street soured on them amidst less-than-stellar results and short sellers attacking them, with criticism of their accounting and operating practices. The article did bring up a good point about how despite all this, it has been 30 years and competitors are still trying to copy what they do. Who will win the battle between Ron Burkle and Dan Loeb? Typically, we would say the shareholders, but the stock is still not even close to the Burkle-endorsed takeover price, at $7.90 versus a $9 price. It still does not look like Wall Street expects a bidding war or that a higher price is in the works.

Talking about takeovers, Hilton’s 10K filing disclosed what they paid for a majority stake in NoMad Hotels. HLT paid just $56 million to get a controlling interest in Sydell Group. HLT can buy the remaining stake in the brand from Sydell and others by 2030-2032 at a fair value of $22 million as of the acquisition date. HLT expects to expand the NoMad Hotels brand by the time they get to that date.

RAM Hotels is opening a new hotel at Old Town in Columbus, GA. RAM started construction on a 98-room Tru by Hilton hotel across the street from the upscale Morton’s restaurant at Old Town. The project is estimated to cost $14 million to complete. They expect to open it in the summer of 2026. RAM owns eight hotels in the Columbus-Phenix City area. This hotel is the first of RAM’s new line of hotels they are developing with four new hotels expected to be underway in the coming years.

Dreamscape Hospitality announced it will assume management of the Hampton Inn Kansas City Airport. The hotel is located near the Kansas City International Airport, so Dreamscape said they will cater to both business and leisure travelers.

Sage Hospitality Group announced the addition of Hyatt Centric Fisherman’s Wharf San Francisco Hotel. This is the second collaboration for Sage with Park Hotels & Resorts following the addition of Hilton Denver City Center last December. Sage adds this hotel to the four independent lifestyle hotels they operate in San Francisco as well as properties in Sonoma and Napa Valley in California. The Hyatt Centric Fisherman’s Wharf is a full-service hotel with 316 modern rooms and suites, located just steps from San Francisco Bay. Amenities include a 24-hour fitness facility, an outdoor heated pool, and extensive meeting and event space. Sage Restaurant Concepts will manage the hotel’s two full-service restaurants.

Sonesta International Hotels Corporation announced the grand opening of Signature Inn Berkley, a 29-room, upper-economy property located in Berkley, CA. The hotel marks the first opening for the Signature Inn brand in 2025 for Sonesta. With this opening, Sonesta now has 14 Signature Inn locations throughout the US. The hotel includes a lounge, retro-modern atmosphere, glossy décor, signature bath amenities, and 24-hour coffee service.

Bungalow Beach Resort on Anna Maria Island in Florida announced the grand opening of its newly built bayside three-story duplex: the Sandpiper and White Pelican Bungalows. The new bungalows preserve the resort’s historical charm, embracing the essence of the 1920s and 1930s with authentic vintage elements that embody the allure of Old Florida. The new bungalows are important because several ground-level bungalows were damaged by Hurricane Helene last summer.

DSH Hotel Advisors has secured the sale of the Quality Inn Lake City in Florida for an undisclosed amount. The buyer was US-based Maheshwara. DSH represented the seller, Aksas Motel, and was one of 11 competitive offers on the property. The hotel offers 55 rooms of various kinds, including standard rooms and suites, along with 253 square feet of event space and an outdoor pool.

Peachtree Group said they deployed $1.6 billion in credit transactions in 2024, marking a 54% increase from 2023. This was across multiple property types, including hospitality, multi-family, industrial, and specialty assets. Peachtree set a record in 2024 for CPACE financing with 22 transactions totaling $316.6 million. The CPACE team also recently surpassed $1 billion in total transactions.

Driftwood Capital announced the launch of its new Driftwood Lifestyle & Luxury Division (DLLUX). DLLUX is led by the former CEO of Aspen Hospitality, Alinio Azevedo. At launch, DLLUX will assume oversight of 12 assets currently managed by Driftwood Hospitality Management, eight of which are also owned by Driftwood-sponsored funds. The launch of DLLUX is also a further move by Driftwood into the luxury, lifestyle, and branded residences sector. Since 2019, the firm has undertaken more than $2 billion in investment. Driftwood is also set to launch a dedicated investment fund targeting Lifestyle, Luxury, and Branded Residences, which will also be led by Azevedo. The new fund will target discerning markets across the US and select international markets that fit the fund’s criteria. The fund will strategically invest in assets that align with the evolving tastes of affluent travelers with planned capital deployments of over $3 billion.

The W Punta Cana, Adult All-Inclusive now has an opening date of April 15. The 340-room Dominican Republic property includes swim-up and plunge pool rooms and is the latest in a surge of Marriott all-inclusive debuts in recent months.

Personnel Moves

Whim Hospitality announced the appointment of Holly Bohn Pittman as CEO. Pittman is the founder of See Jane Work, a disrupter of the office supply industry. Whim Hospitality currently comprises Camp Lucy in Dripping Springs, TX; Whim Event Rentals in Texas; the Old Bell Hotel and Abbey House Manor in Malmesbury, England. Whim plans to launch the Folklore Spa at Camp Lucy, a social wellness destination set to open in early 2025. Kim Hanks’ new title will be Co-owner and Chief Creative Officer. Whit Hanks will also remain deeply involved.

Edwardian Hotels London announced Declan Lott rejoined the company as Vice President of Sales for North America. Lott previously worked with Edwardian Hotels London for more than 30 years. Lott will oversee the luxury business-to-business programs for Edwardian Hotels London.

Wyndham Hotels & Resorts announced their expansion in Europe with 25 New City Hotels, strengthening their presence in Germany, Austria, and the Netherlands. The expansion is a result of Wyndham’s long-standing partnership with HR Group.