Hyatt is taking over all-inclusive company Playa Hotels & Resorts for $2.6 billion.
Playa operates 24 resorts in Mexico, Jamaica and the Dominican Republic representing more than 9,000 rooms under multiple brands.
The US hotel group also plans to realise $2 billion from asset sales over two years.
“This commitment may include existing assets owned by Hyatt and properties owned by Playa,” a statement said.
“The company expects its asset-light earnings mix to exceed 90% on a pro forma basis in 2027.
“At closing, the company expects to fund 100% of the acquisition with new debt financing, and, following the close of the transaction, the company expects to pay down over 80% of that financing with anticipated proceeds from the aforementioned asset sales,” Hyatt added.
The deal came as Hyatt reported a net loss of $56 million for the fourth quarter of 2024. However, net profit for the full year came in at $1.3 billion. Adjusted net income was $40 million in the fourth quarter and $375 million for the full year.
President and chief executive Mark Hoplamazian said: “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 that launched the Hyatt Ziva and Hyatt Zilara brands.
“We have respected and benefitted from Playa’s operating expertise and outstanding guest experience delivery for years through their ownership and management of eight of our Hyatt Ziva and Hyatt Zilara hotels.
“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.”