Hyatt announces exclusive discussions with Playa Hotels & Resorts

Hyatt Hotels (H) disclosed it has executed an exclusivity agreement with Playa Hotels & Resorts (PLYA) under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives, which may include the acquisition of Playa by Hyatt. Mark Hoplamazian, President and CEO 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.” There can be no assurances that any transaction will result from Hyatt’s exclusive discussions with Playa, or on what terms. Hyatt does not intend to comment further on these discussions unless and until a definitive agreement has been fully executed.