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Hyatt Hotels announced today that it’s entering into an exclusivity agreement with Playa Hotels & Resorts that would give the hotelier the option of buying the chain of resorts located throughout the Caribbean. Hyatt is dominating the all-inclusive space and it appears that it still has an appetite for more resorts.
The hotel chain has been on a buying and partnership spree for the past few years. It just announced an exclusive agreement with the Venetian and Palazzo in Las Vegas, Last month saw the Rio become part of the Destination by Hyatt brand. Hyatt signed on to manage the all-inclusive portfolio of Bahia Principe-branded hotels and resorts in October. It also acquired The Standard and Bunkhouse Hotels in August. The list continues with Apple Leisure Group, Mr & Mrs Smith, Two Roads Hospitality, Dream Hotel Group, me and all hotels, and more over the past few years.
Playa Hotels & Resorts owns 24 resorts in the Dominican Republic, Jamaica, and Mexico. Hyatt already owns 9.99% of the company. These properties are physically owned by the hotel group rather than being asset-light agreements (like most of Hyatt’s portfolio). Brands in the Playa portfolio include everything from Hyatt Ziva and Zilara to Hiltons, Wyndhams, and more. If this deal goes through, a lot of properties would be reflagged.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said:
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. 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.”
Anthony’s Take: I am not a fan of all-inclusive resorts and am happy that Hyatt has focused energy elsewhere in addition to buying all of these holiday factories. I guess there is a lot of money in all inclusives, but they are not my scene.
(Featured Image Credit: Hyatt.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
