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.

The acquisition strengthens Hyatt’s grip on the luxury all-inclusive sector, particularly benefiting its Hyatt Ziva and Hyatt Zilara brands.

Financial and Legal Heavyweights Behind the Deal

BDT & MSD Partners led financial advisory efforts for Hyatt, with Berkadia serving as the company’s real estate consultant. Major financial institutions—including BofA Securities, JPMorgan Chase & Co., and Wells Fargo—provided bridge financing.

Despite requests for comment, Latham & Watkins LLP and Hogan Lovells have not issued statements regarding the transaction.

With this acquisition, Hyatt doubles down on its vision for a high-end, experience-driven hospitality empire, making a strategic move in an increasingly competitive global market.