Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, March 7, 2025

Article Excerpt

HYATT HOTELS CORP., $135.73, symbol H on New York, is a global hospitality company with over 20 brands. The company has more than 1,400 hotels and all-inclusive properties in 79 countries on six continents. Its brands include Park Hyatt, Grand Hyatt, Hyatt Regency, and Hyatt. The company also operates the World of Hyatt loyalty program, which had 54 million members as of December 31, 2024. On February 24, 2025, Hyatt announced it would acquire Playa Hotels & Resorts N.V. (symbol PLYA on Nasdaq) for $2.6 billion. Playa owns or manages 24 resorts in Jamaica, the Dominican Republic and Mexico. These resorts have 8,627 rooms under several all-inclusive brands, including Hyatt Zilara, Hyatt Ziva, and Hilton All-Inclusive. Hyatt plans to sell the resorts owned by Playa as part of its asset-light business model (one that doesn’t require raising and investing a lot of capital). It expects that the asset sales will pay 80% of the debt taken on to fund the acquisition. Notably, Hyatt entered…