Get a Playa Hotel Hyatt
Jack Otter and the panelists for Baron’s Round Table are discussing the top three tips investors should consider heading into next week.
Hyatt Hotel will purchase Playa hotels and resorts for around $2.6 billion, including net cash debt, the company said Monday in pursuit of a growing presence in Mexico and the Caribbean.
The acquisition follows a growing interest in luxury and luxury products outside the US as more Americans take advantage of the stronger dollars.
Playa operates 24 high-end all-inclusive resorts in Mexico, Jamaica and the Dominican Republic.
Hyatt, which owns a 9.4% stake in Playa, expects trading to close later this year. (Pavlo Gonchar/SOPA Images/Lightrockets Vitty Images/Getty Images)
Hyatt offers $13.50 per playa share, representing a 40.5% premium until the final end on December 20th, with companies announced transaction talks. Playa shares rose 2% in pre-market trading on Monday.
Hyatt, which owns a 9.4% stake in Playa, expects trading to close later this year.
It says it will identify third-party buyers for Playa’s own assets and expects to win at least $2 billion from the sale of the assets by 2027.
This is part of Hyatt’s asset lighting business model, in which operators prefer to manage or franchise physical properties rather than own them.