12:16 PM EST, 02/10/2025 (MT Newswires) -- Hyatt Hotels ( H ) agreed to acquire Playa Hotels & Resorts ( PLYA ) in a deal worth around $2.6 billion, including $900 million of debt, the companies said in separate statements Monday.

Under the terms, hospitality company Hyatt will pay $13.50 a share in cash for all the stock it doesn't already own in the operator of resorts in Mexico, Jamaica and the Dominican Republic. Hyatt said it currently has a 9.4% stake in Playa.

The consideration represents a 40% premium to Playa's stock price before the company announced its exclusive discussions with Hyatt, Playa Chief Executive Bruce Wardinski said in a statement. The companies in December confirmed exclusive talks, which were extended last week.

"Following a deliberate and comprehensive review of opportunities, the Playa board concluded that the proposed transaction with Hyatt is in the best interest of the company," according to Wardinski. "We are confident that this transaction maximizes shareholder value."

The deal, which requires approval from regulators and Playa's investors, is expected to complete later this year, according to the companies. Shares of Playa increased 1.9% in midday trading, while those of Hyatt edged down 0.5%.

"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 Chief Executive Mark Hoplamazian said in a separate statement.

The acquisition is expected to allow Hyatt to secure long-term management agreements for its Hyatt Ziva and Hyatt Zilara luxury properties. The deal expands Hyatt's distribution channels, setting the stage for further optimization of its infrastructure in Mexico and the Caribbean.

Hyatt said it will seek potential buyers for Playa's owned properties as part of its aim to remain an asset-light business. Hyatt projects at least $2 billion in proceeds from these asset sales by the end of 2027 and "asset-light earnings" to surpass 90% on a pro forma basis in the same year.

Price: 163.09, Change: -0.93, Percent Change: -0.57