Hyatt Hotels Corp. is expanding its presence in the all-inclusive sector with a bold acquisition of Playa Hotels & Resorts for a staggering USD $2.6 billion (CAD $3.73 billion). This strategic move could reshape the luxury travel landscape and enhance Hyatt’s portfolio significantly.
Expansion into All-Inclusive Resorts
Playa Hotels & Resorts currently owns or oversees 24 premium properties located primarily in Mexico, Jamaica, and the Dominican Republic, boasting a total of 8,627 rooms. Many of these resorts operate under renowned brands such as Hilton, Wyndham, IHG, and Marriott, alongside Hyatt. The future of these properties remains uncertain following the acquisition.
Recent Ventures in All-Inclusive Market
This acquisition comes shortly after Hyatt announced a 50/50 joint venture with Grupo Piñero, which will add the Bahia Principe Hotels & Resorts to Hyatt’s Inclusive Collection. Currently, this collection encompasses approximately 55,000 rooms spread across Latin America, the Caribbean, and Europe. Such moves indicate Hyatt’s strong commitment to expanding its all-inclusive offerings.
According to Reuters, rising interest in upscale and luxury travel options outside the United States has been fueled by a stronger dollar, making international travel more appealing to Americans.
Hyatt’s Strategic Vision
Mark Hoplamazian, President and CEO of Hyatt, stated, “The acquisition reflects our journey as a recognized leader in the all-inclusive sector, a path that began in 2013 with our investment in Playa Hotels & Resorts, leading to the launch of the Hyatt Ziva and Hyatt Zilara brands.”
Hyatt has benefited from Playa’s operational expertise and success in delivering exceptional guest experiences, notably through their management of eight Hyatt Ziva and Hyatt Zilara hotels. This forthcoming acquisition is set to enhance Hyatt’s management capabilities while providing increased value to all stakeholders involved.
Portfolio Enhancement and Distribution Expansion
Hyatt highlighted that Playa’s portfolio consists of high-quality resorts situated in iconic locations and key markets. The acquisition aims to secure long-term management agreements for Hyatt’s luxury all-inclusive brands, including Hyatt Ziva and Hyatt Zilara. Additionally, this will broaden Hyatt’s distribution channels through ALG Vacations and Unlimited Vacation Club, granting Playa hotel guests added benefits.
“Hyatt is strategically positioned to create value through the synergy of complementary business segments while optimizing its existing all-inclusive infrastructure throughout Mexico and the Caribbean,” the company stated.
Future Growth Plans
This acquisition marks a significant milestone in Hyatt’s ongoing growth trajectory within the all-inclusive market, which saw a notable expansion following the acquisition of Apple Leisure Group in 2021 and the anticipated completion of its joint venture with Grupo Piñero in 2024.
Currently, Hyatt holds 9.4% of Playa’s outstanding shares, indicating a solid investment in its future and a strong alignment of business strategies.
As the hospitality world evolves, Hyatt’s enhancements to its all-inclusive offerings signal a robust future for both the company and travelers seeking upscale vacation experiences.
