Hyatt Announces Extension of Exclusivity Period With Playa Hotels & Resorts N.V.

Rhea-AI Summary

Hyatt Hotels (NYSE: H) has announced an extension of its exclusivity agreement with Playa Hotels & Resorts N.V. (NASDAQ: PLYA) through February 10, 2025. The agreement maintains Playa's commitment to negotiate exclusively with Hyatt regarding potential strategic alternatives, which could include Hyatt acquiring Playa.

As of September 30, 2024, Hyatt's portfolio encompasses more than 1,350 hotels and all-inclusive properties across 79 countries on six continents. The company's portfolio includes multiple brands across various segments: Luxury Portfolio, Lifestyle Portfolio, Inclusive Portfolio, Classics Portfolio, and Essentials Portfolio.

Positive

• Potential strategic acquisition opportunity to expand all-inclusive resort presence
• Secured exclusive negotiation rights through February 2025
• Large global portfolio of 1,350+ properties across 79 countries

Negative

• None.

Insights

M&A Strategy Analyst

The extension of Hyatt's exclusivity agreement with Playa Hotels & Resorts until February 10, 2025 signals a potentially transformative deal in the luxury hospitality sector. This strategic move aligns with Hyatt's aggressive expansion strategy in the high-margin all-inclusive resort segment, where Playa operates 22 premium resorts across Mexico, Dominican Republic and Jamaica.

The potential acquisition would be particularly synergistic given the existing relationship between both companies - Hyatt already has branded resorts operated by Playa under the Hyatt Zilara and Hyatt Ziva flags. A full integration would eliminate current franchise fee arrangements and provide Hyatt with direct control over these properties while expanding its footprint in key Caribbean and Mexican markets.

From a competitive standpoint, this move would position Hyatt more strongly against Marriott and Hilton in the luxury all-inclusive space, a segment seeing robust post-pandemic growth. The timing is strategic, as luxury travel demand remains resilient despite broader economic uncertainties.

Key considerations for investors include:

• Potential revenue synergies through cross-selling opportunities and enhanced distribution capabilities
• Operational efficiencies from combining loyalty programs and eliminating duplicate corporate functions
• Geographic diversification benefits in high-demand vacation markets
• Possible margin expansion through economies of scale and improved pricing power

The extended negotiation period suggests complex discussions around valuation and integration planning, typical for deals of this magnitude in the hospitality sector. The outcome could significantly impact Hyatt's growth trajectory and competitive positioning in the luxury leisure segment.

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (the “Company” or “Hyatt”) (NYSE: H) today announced it has extended its previously disclosed exclusivity agreement date with Playa Hotels & Resorts N.V. (“Playa”) (NASDAQ: PLYA), under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives and which may include the acquisition of Playa by Hyatt. The exclusivity period has been extended through February 10, 2025.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of September 30, 2024, the Company's portfolio included more than 1,350 hotels and all-inclusive properties in 79 countries across six continents. The Company's offering includes brands in the Luxury Portfolio, including Park Hyatt®, Alila®, Miraval®, Impression by Secrets, and The Unbound Collection by Hyatt®; the Lifestyle Portfolio, including Andaz®, Thompson Hotels®, The Standard®, Dream® Hotels, The StandardX, Breathless Resorts & Spas®, JdV by Hyatt®, Bunkhouse® Hotels, and me and all hotels; the Inclusive Portfolio, including Zoëtry® Wellness & Spa Resorts, Hyatt Ziva®, Hyatt Zilara®, Secrets® Resorts & Spas, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Sunscape® Resorts & Spas, and Alua Hotels & Resorts®; the Classics Portfolio, including Grand Hyatt®, Hyatt Regency®, Destination by Hyatt®, Hyatt Centric®, Hyatt Vacation Club®, and Hyatt®; and the Essentials Portfolio, including Caption by Hyatt®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

Forward-Looking Statements

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. These statements include statements about Hyatt’s discussions with Playa regarding strategic alternatives and involve known and unknown risks that are difficult to predict. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions and political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as earthquakes, tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotel services agreements or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; and violations of regulations or laws related to our franchising business and licensing businesses and our international operations; and other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including our annual report on Form 10-K and our Quarterly Reports on Form 10-Q, which filings are available from the SEC. These factors are not necessarily all of the important factors that could cause our actual results, performance or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

HHC-FIN

View source version on businesswire.com: https://www.businesswire.com/news/home/20250203774850/en/

Investors:

Adam Rohman

+ 1 312.780.5834

adam.rohman@hyatt.com

Ryan Nuckols

+1 312.780.5784

ryan.nuckols@hyatt.com

Media:

Franziska Weber

+ 1 312.780.6106

franziska.weber@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

When does Hyatt's exclusivity agreement with Playa Hotels expire?

Hyatt's exclusivity agreement with Playa Hotels & Resorts has been extended through February 10, 2025.

How many properties does Hyatt (NYSE: H) currently operate globally?

As of September 30, 2024, Hyatt operates more than 1,350 hotels and all-inclusive properties across 79 countries on six continents.

What is the purpose of Hyatt's exclusivity agreement with Playa Hotels?

The exclusivity agreement allows Hyatt to negotiate exclusively with Playa regarding potential strategic alternatives, which may include Hyatt acquiring Playa Hotels & Resorts.

How many countries does Hyatt (H) operate in as of 2024?

Hyatt operates in 79 countries across six continents as of September 30, 2024.