International hospitality group Hyatt Hotels Corporation has entered into exclusive negotiations with Playa Hotels & Resorts that explore potential strategic options, including the acquisition of the company.

Playa is the owner, operator and developer of all-inclusive resorts in prime beachfront locations in Mexico, Jamaica and the Dominican Republic. Its total portfolio consist of 24 resorts with 8,627 rooms under the brands Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Tapestry Collection by Hilton, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts and The Luxury Collection.

Here in Jamaica, Playa owns and/or operates Hilton Rose Hall, Hyatt Zilara, Hyatt Ziva and Jewel Grande — all in St James — as well as Jewel Paradise Cove in St Ann.

Hyatt, which owns about 10 per cent of Playa’s outstanding shares, operates the Secrets St James, Secrets Wild Orchid and Breathless properties in Montego Bay after its acquisition of AMR Resorts in 2021. The group also operates Zoetry in Rose Hall.

Playa has indicated that its board of directors has been evaluating opportunities to maximise value for shareholders and has engaged with a number of potential counterparties.

“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,” explained 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.”

Both parties will have until February 3, 2025 to enter into a definitive agreement for a potential transaction, after which the exclusive agreement will expire. There are no assurances that any transaction will result from Hyatt’s exclusive discussions with Playa, or on what terms.

For the duration of the discussions, neither Hyatt nor Playa plan to comment further on the negotiations unless and/or until they have reached a definitive agreement.

Commenting on Hyatt’s interest in Playa, Hyatt’s President and Chief Executive Officer Mark S Hoplamazian, noted, “Playa has been a valuable partner for many years, is one of the world’s strongest operators of all-inclusive resorts, and owns a premier portfolio of high-quality, high-end all-inclusive resorts in iconic locations and key markets across the Caribbean and Mexico.”

He continued: “Strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams for Hyatt. We remain steadfastly committed to our asset-light business model and if this process continues, we will continue to map out a clear path for an asset-light outcome for any strategic alternatives we undertake.”

Playa Hotels & Resorts is valued approximately US$1.5 billion. As of noonday, December 23, 2024, its shares, which are traded on the Nasdaq Index, rose by 27.73 per cent or US$2.67 to US$12.28.