Hyatt Hotels Corp. is set to acquire Playa Hotels & Resorts NV in a blockbuster $2.6 billion deal, further cementing its dominance in the luxury resort market. The acquisition, announced Monday, will give Hyatt control over 24 high-end beachfront properties across Mexico, the Dominican Republic, and Jamaica.
Latham & Watkins LLP represented Hyatt in the transaction, working alongside Hogan Lovells to iron out the details of the deal.
Months of Negotiation Culminate in Landmark Deal
Talks between Hyatt and Playa have been in motion since December, with the companies extending an exclusivity agreement that expired Monday. The deal is expected to close later this year, pending regulatory approvals.
While Hyatt takes control of Playa’s resort portfolio, the transaction aligns with its “asset-light” strategy—where third-party buyers will purchase the properties, allowing Hyatt to maintain long-term management or franchise agreements.
Financing Strategy: Debt and Asset Sales
Hyatt, which already owned 9.4% of Playa’s shares prior to the acquisition, will finance the deal using cash and $900 million in debt. The hospitality giant plans to generate at least $2 billion from asset sales by 2027, intending to use those proceeds to eliminate 80% of the acquisition debt.
