Playa Hotels & Resorts N.V. Confirms Exclusive Discussions With Hyatt Hotels Corporation Regarding Potential Strategic Options

Rhea-AI Summary

Playa Hotels & Resorts (NASDAQ: PLYA) has entered into an exclusive negotiation agreement with Hyatt Hotels (NYSE: H) regarding potential strategic options, including a possible acquisition by Hyatt. The exclusivity period runs until February 3, 2025, or until a definitive agreement is reached.

The company's Board of Directors has been evaluating opportunities to maximize shareholder value and has engaged with multiple potential counterparties. 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, and Hogan Lovells as legal counsel for the discussions.

Positive

• Potential acquisition by major hotel Hyatt indicates strong market interest
• Board actively pursuing shareholder value maximization through strategic options
• Substantial portfolio of 24 resorts with 8,627 rooms in prime locations

Negative

• No guarantee of reaching a definitive agreement with Hyatt
• ability to negotiate with other parties during exclusivity period

Insights

M&A Specialist

The exclusive negotiation period between Playa Hotels & Resorts and Hyatt Hotels represents a significant strategic development in the hospitality sector. With Playa's portfolio of 24 resorts (8,627 rooms) across prime beach locations in Mexico, Jamaica and the Dominican Republic, this potential acquisition aligns with the industry trend of larger hotel chains expanding their all-inclusive offerings. The exclusivity agreement until February 3, 2025, indicates advanced discussions and serious intent. The engagement of PJT Partners as financial advisor suggests thorough due diligence and professional deal structuring. The existing relationship between both companies through Hyatt Zilara and Hyatt Ziva brands could facilitate integration if a deal materializes.

In simpler terms: Hyatt might buy Playa Hotels, which would give Hyatt a bigger presence in beach resorts. They have until early February to make a deal.

Hospitality Industry Analyst

This potential transaction reflects the accelerating consolidation in the all-inclusive resort segment, where major hotel chains are seeking to expand their presence in high-margin vacation destinations. Playa's strategic value lies in its diverse brand portfolio including partnerships with Hyatt, Hilton, Wyndham and Kimpton, plus its strong positioning in key Caribbean markets. The timing suggests operators are looking to strengthen their leisure travel offerings as post-pandemic travel patterns show sustained preference for premium vacation experiences.

For everyday investors: Think of this like a bigger restaurant chain wanting to buy a successful smaller chain that already knows how to run beach resorts really well. It could mean better business for both companies.

Financial Analyst

The market reaction warrants close attention as Playa's $1.16 billion market cap makes this a substantial potential acquisition. The exclusive negotiation period and multiple interested parties mentioned suggest a competitive process that could drive favorable terms for shareholders. The Board's proactive approach to maximizing shareholder value, combined with the strategic fit between Playa's assets and Hyatt's expansion goals, indicates potential for a premium valuation. Key considerations include potential synergies from combining operations, elimination of franchise fees and enhanced distribution capabilities.

Put simply: Playa's shareholders could benefit from this deal as Hyatt might pay more than the current stock price to buy the company, especially if other companies were also interested in buying Playa.

FAIRFAX, Va., Dec. 23, 2024 /PRNewswire/ -- Playa Hotels & Resorts N.V. (NASDAQ: PLYA) (the "Company" or "Playa") today confirmed it has executed an exclusivity agreement with Hyatt Hotels Corporation (NYSE: H) ("Hyatt") under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic options, which may include the acquisition of the Company by Hyatt. The exclusivity agreement will remain in place until the earlier of the execution of a definitive agreement for such transaction or 11:59 p.m. New York City time on February 3, 2025.

Playa's Board of Directors has been evaluating opportunities to maximize value for shareholders and has engaged with a number of potential counterparties. Consistent with its fiduciary duties, the Board is committed to enhancing shareholder value and regularly reviews the Company's opportunities to advance the best interests of all Playa shareholders.

"Our Board and management team regularly review our structure, strategy and opportunities to enhance shareholder value, and we are pleased to enter into exclusive discussions with Hyatt regarding potential strategic options," said Bruce D. Wardinski, Chairman and CEO of Playa Hotels & Resorts. "Hyatt's interest in our company is a testament to the strength of our business and the dedication of our incredible Playa team. The Playa Board and management team will remain open-minded and continue to act in the best interests of all Playa shareholders."

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 consideration of strategic options and related negotiations 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 / Dylan O'Keefe
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

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SOURCE Playa Hotels & Resorts N.V.

FAQ

What is the deadline for Playa Hotels (PLYA) exclusive negotiations with Hyatt?

The exclusivity agreement with Hyatt will remain in place until February 3, 2025, at 11:59 p.m. New York City time, or until a definitive agreement is executed, whichever comes first.

How many properties does Playa Hotels (PLYA) currently own and manage?

Playa Hotels & Resorts currently owns and/or manages a portfolio of 24 resorts with 8,627 rooms across Mexico, Jamaica, and the Dominican Republic.

What are the potential outcomes of PLYA's negotiations with Hyatt?

The potential strategic options being discussed include the possible acquisition of Playa Hotels & Resorts by Hyatt Hotels , though specific terms and outcomes are not guaranteed.

Which financial advisor is supporting PLYA in the Hyatt negotiations?

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

What brands are currently in Playa Hotels (PLYA) portfolio?

Playa'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.