Hyatt Hotels in Exclusive Talks for Playa Hotels Takeover

(Reuters) – Hyatt Hotels (NYSE:H) is in exclusive discussions regarding a potential takeover of Playa Hotels & Resorts (NASDAQ:PLYA) N.V., alongside other strategic options for the $1.2 billion resort operator, as announced on Monday.

Market Reaction

Playa's shares rose about 11% before the bell, while Hyatt's stock price gained 1%.

Playa Hotels Overview

Playa operates 24 high-end, all-inclusive resorts across Mexico. The company's board has been evaluating opportunities and engaging with several potential counterparties.

Exclusive Talks

The exclusive discussions with Hyatt, which holds a 9.99% stake in Playa, will continue through February 3 or until a deal is reached. Playa cautioned that there is no guarantee of a transaction.

Existing Partnership

Playa is already partnered with Hyatt, managing resorts under the Hyatt Ziva and Hyatt Zilara brands, with a market value of $1.2 billion, according to LSEG data.

Strategic Considerations

Hyatt believes that strategic alternatives under consideration could enhance new, incremental durable fee streams, though it remains committed to its asset-light business model.

Industry Context

The hospitality sector faces challenges due to global travel demand, with American and Chinese consumers remaining cautious in light of macroeconomic trends.

Advisors

PJT Partners (NYSE:PJT) LP serves as Playa's financial advisor, with Hogan Lovells acting as legal counsel.