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

Rhea-AI Summary

Playa Hotels & Resorts N.V. (NASDAQ: PLYA) has announced an extension of its exclusivity agreement with Hyatt Hotels (NYSE: H) until February 10, 2025, at 11:59 p.m. New York City time. The extension relates to ongoing discussions about potential strategic options, including a possible acquisition of Playa by Hyatt.

The company emphasized that there is no guarantee of reaching a definitive agreement or completing any transaction. Playa currently owns and manages a portfolio of 24 resorts (8,627 rooms) across Mexico, Jamaica, and the Dominican Republic under various brands including Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, and others. PJT Partners LP is serving as financial advisor, with Hogan Lovells as legal counsel.

Positive

• Potential strategic acquisition by major hospitality company Hyatt Hotels
• Substantial portfolio of 24 resorts with 8,627 rooms in prime locations
• Partnerships with globally recognized hospitality brands

Negative

• Uncertainty about transaction completion or final terms
• Extended negotiation period suggests potential complexity in reaching agreement

Insights

M&A Analyst

The extension of the exclusivity period between Playa Hotels & Resorts and Hyatt Hotels is a significant development in what could be a transformative deal in the hospitality sector. This extension, while brief, suggests substantial progress in negotiations, as companies typically only extend exclusivity when they've made meaningful headway toward a potential agreement.

The strategic rationale for this potential acquisition is compelling. Playa's portfolio of 24 resorts with 8,627 rooms across premium beach locations in Mexico, Jamaica and the Dominican Republic would significantly enhance Hyatt's presence in the lucrative all-inclusive resort segment. The existing partnership through Hyatt Zilara and Hyatt Ziva brands has already demonstrated successful collaboration, potentially reducing integration risks.

Several key factors make this potential transaction particularly noteworthy:

• Playa's multi-brand portfolio, including partnerships with Hilton and Wyndham, could provide Hyatt with immediate scale in the all-inclusive segment
• The company's direct-to-consumer strategy and established relationships with major hospitality brands could offer significant revenue synergies
• The timing aligns with the broader industry trend of major hotel chains expanding their all-inclusive offerings to meet growing consumer demand

The engagement of PJT Partners, known for their expertise in complex hospitality transactions, suggests this deal is being approached with sophisticated financial engineering. While no transaction is guaranteed, the extension of exclusivity typically indicates both parties are invested in reaching a successful conclusion.

FAIRFAX, Va., Feb. 3, 2025 /PRNewswire/ -- Playa Hotels & Resorts N.V. (NASDAQ: PLYA) (the "Company" or "Playa") previously announced it had entered into an exclusivity agreement with Hyatt Hotels Corporation (NYSE: H) ("Hyatt") regarding discussions between the parties of potential strategic options, which may include the acquisition of the Company by Hyatt. Playa today confirmed that the parties are extending the exclusivity agreement to 11:59 p.m. New York City time on February 10, 2025.

There can be no assurance that the Company and Hyatt will enter into a definitive agreement for a potential transaction and there is no assurance as to the form, terms or timing of any transaction even if an agreement is reached between the parties. The Company does not intend to comment further, unless and until it otherwise deems further disclosure is appropriate or required.

PJT Partners LP is serving as financial advisor to Playa Hotels & Resorts and Hogan Lovells is serving as legal counsel.

About Playa Hotels & Resorts N.V.

Playa Hotels & Resorts N.V., through its subsidiaries (NASDAQ: PLYA, "Playa"), is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in Mexico, Jamaica and the Dominican Republic. Playa currently owns and/or manages a total portfolio consisting of 24 resorts (8,627 rooms) under the following brands: Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Tapestry Collection by Hilton, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts and The Luxury Collection. Playa leverages years of all-inclusive resort operating expertise and relationships with globally recognized hospitality brands to provide a best-in-class experience and exceptional value to guests, while building a direct relationship to improve customer acquisition cost and drive repeat business. For more information, please visit www.playaresorts.com.

For additional information visit investors.playaresorts.com.

Forward-Looking Statements

This press release contains "forward-looking statements," as defined by federal securities laws, including statements regarding the Company's discussions with Hyatt and the expiration of the exclusivity agreement. Forward-looking statements reflect our current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Playa's Annual Report on Form 10-K, filed with the SEC on February 22, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Playa's filings with the SEC. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements).

For further information: Playa Hotels & Resorts N.V., Pedram Saif, SVP, IR & Strategy, 571-529-6014, ir@playaresorts.com

Media Contact:

Andrew Siegel / Tim Ragones / Charlotte Burch
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

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SOURCE Playa Hotels & Resorts N.V.

FAQ

When does the extended exclusivity agreement between PLYA and Hyatt expire?

The extended exclusivity agreement between Playa Hotels & Resorts (PLYA) and Hyatt Hotels expires on February 10, 2025, at 11:59 p.m. New York City time.

How many properties does PLYA currently own and manage?

PLYA currently owns and manages a portfolio of 24 resorts with 8,627 rooms across Mexico, Jamaica, and the Dominican Republic.

What are the potential outcomes of the PLYA-Hyatt exclusivity agreement?

The potential outcomes include strategic options that may lead to Hyatt acquiring Playa Hotels & Resorts, though there is no guarantee of a definitive agreement or transaction completion.

Which financial advisor is supporting PLYA in the potential Hyatt transaction?

PJT Partners LP is serving as the financial advisor to Playa Hotels & Resorts for the potential transaction with Hyatt.

What hotel brands are currently in PLYA's portfolio?

PLYA's portfolio includes brands such as Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Tapestry Collection by Hilton, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts, and The Luxury Collection.