Hyatt Hotels Corporation ( H ) said it will acquire Playa Hotels & Resorts N.V. ( PLYA ) for $2.6 billion, which encompasses $900 million in debt and a per-share price of $13.50.

Hyatt, which currently owns 9.4% of Playa’s outstanding shares, seeks to enhance its position in the all-inclusive resort sector, spanning Mexico, the Dominican Republic, and Jamaica.

The transaction will deliver to Playa shareholders a 40% premium to the company’s unaffected stock price before disclosing exclusive discussions with Hyatt.

The acquisition will allow Hyatt to secure long-term management contracts for its Hyatt Ziva and Hyatt Zilara resorts.

This move is in line with Hyatt’s ongoing efforts to expand its all-inclusive portfolio following its 2021 purchase of Apple Leisure Group.

Hyatt’s newest acquisition aligns with its strategy of asset-light growth. Following the close of the transaction, Hyatt anticipates realizing at least $2.0 billion of proceeds from asset sales by the end of 2027 and expects asset-light earnings to exceed 90% on a pro forma basis in 2027.

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The deal, expected to be finalized later this year, will be financed entirely through new debt, with plans to reduce 80% of the debt through asset sales.

“Hyatt has firmly established itself as a leader in the all-inclusive space, a journey that began in 2013 through an investment in Playa Hotels & Resorts ( PLYA ) that launched the Hyatt Ziva and Hyatt Zilara brands,” said President and CEO Mark Hoplamazian.

“This pending transaction allows us to broaden our portfolio while providing more value to all of our stakeholders through an expanded management platform for all-inclusive resorts.”

Hyatt held $1.134 billion of cash and equivalents and short-term investments as of September 30, 2024.

Hyatt will release its fourth quarter and 2024 financial results on Thursday, February 13, 2025.

Price Action: PLYA shares are trading higher by 1.97% at $13.20 at the last check on Monday.

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