Hyatt Hotels Corporation (NYSE: H) is acquiring all outstanding shares of Playa Hotels & Resorts NV (NASDAQ: PLYA) for $13.50 per share, or approximately $2.6 billion, including approximately $900 million of debt, net of cash.
Playa is the owner and operator of resorts in Mexico, the Dominican Republic and Jamaica. Hyatt, which is currently the beneficial owner of 9.4% of Playa’s outstanding shares, expects to fund 100% of the acquisition with new debt financing and pay down over 80% of the new debt financing with proceeds from asset sales.
“Hyatt has firmly established itself as a leader in the all-inclusive space, a journey that began in 2013 through an investment in Playa Hotels & Resorts that launched the Hyatt Ziva and Hyatt Zilara brands,” said Mark Hoplamazian, president and CEO of Chicago-headquartered Hyatt. “We have respected and benefitted from Playa’s operating expertise and outstanding guest experience delivery for years through their ownership and management of eight of our Hyatt Ziva and Hyatt Zilara hotels. This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts.”
