Hyatt Hotels plans expansion in the all-inclusive segment

Hyatt Hotels is currently in exclusive negotiations for the potential acquisition of Playa Hotels & Resorts. This transaction could significantly strengthen Hyatt's presence in the upscale all-inclusive resort market in the Caribbean and Mexico. This move followed a comprehensive review by Playa, which had been exploring various options to maximize shareholder value, sparking conversations with several potential buyers. Details regarding the purchase price are not yet known, and both companies declined to comment further on the discussions. Alan Woinski, the editor of Skift’s Daily Lodging Report, sees the potential acquisition as a perfect fit for Hyatt. The companies already collaborate on some Hyatt Resorts, making the potential acquisition all the more interesting. New locations and an expanded all-inclusive offering could open up additional customer potential for Hyatt. Mark Hoplamazian, President and CEO of Hyatt, praises Playa as a valuable partner and describes its portfolio of high-quality all-inclusive resorts in prime locations as one of the best in the world. The integration of such resorts into the Hyatt portfolio could represent a strategic transformation. In a quick report by Truist Securities, Patrick Scholes and Gregory Miller speculate that in case of an acquisition, Hyatt might rebrand the hotels not operating under its own brand and gradually divest the real estate business. This approach could occur promptly or parallel to the potential acquisition. Bruce Wardinski, Chairman and CEO of Playa, views Hyatt’s interest as recognition of his company’s strength. Playa operates numerous all-inclusive resorts in Mexico and the Caribbean and has the potential to further diversify Hyatt's offerings. As early as 2021, Hyatt acquired the Apple Leisure Group for $2.7 billion and entered into a partnership with Spain’s Grupo Piñero earlier this year to add 23 more resorts. Other hotel companies such as Marriott International and Hilton have also significantly expanded their all-inclusive portfolios recently. Marriott, for example, has increased its number of all-inclusive hotels from one to 30, and Hilton has increased its presence in the Caribbean and Latin America by 75% since the pandemic. Furthermore, the industry is pursuing innovative partnerships, such as IHG's with Iberostar Hotels & Resorts to expand by 70 hotels, and Accor's joint venture with Ennismore, which plans 50 resorts within three years.