Playa Hotels set for Hyatt acquisition after antitrust nod

FAIRFAX, Va. - Playa Hotels & Resorts N.V. (NASDAQ: PLYA), a prominent operator of all-inclusive resorts, has received the final antitrust approval needed from Mexico to proceed with its pending sale to Hyatt Hotels Corporation (NYSE: H). The clearance paves the way for Hyatt’s subsidiary, HI Holdings Playa B.V., to acquire Playa in a tender offer for all outstanding ordinary shares at $13.50 each in cash.

The tender offer, part of the Purchase Agreement dated February 9, 2025, is set to expire at 5:00 p.m., New York City time, on June 9, 2025. Provided the minimum tender condition is met by Playa’s shareholders, payment for the tendered shares is expected around June 11, 2025. Hyatt enters this acquisition with solid financials, maintaining a moderate debt level and generating $378 million in levered free cash flow over the last twelve months.

Should the initial tender offer meet its conditions, Hyatt plans to initiate a subsequent offering period starting on June 10, 2025, to acquire any remaining ordinary shares of Playa. This period is slated to conclude at 11:59 p.m., New York City time, on June 16, 2025, with Hyatt anticipated to own all of Playa’s ordinary shares shortly thereafter, around June 17, 2025. InvestingPro data shows Hyatt maintaining strong profitability with a 43.75% gross margin and expects continued growth, with analysts forecasting the company to remain profitable this year. Get access to 10 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

In anticipation of the acquisition’s completion, Playa has also declared its intention to voluntarily delist its ordinary shares from Nasdaq. The delisting is contingent upon the tender offer’s expiration and the acquisition of all tendered ordinary shares as stipulated by the Purchase Agreement. If these conditions are fulfilled, Playa aims to file a notification with the U.S. Securities and Exchange Commission to remove its shares from Nasdaq around June 16, 2025.

The tender offer is being managed by Georgeson LLC, serving as the information agent. Shareholders and financial institutions seeking further details about the tender offer may reach out to Georgeson LLC.

Playa Hotels & Resorts is renowned for its portfolio of all-inclusive resorts located in Mexico, Jamaica, and the Dominican Republic, leveraging strong partnerships with globally recognized hospitality brands.

This news is based on a press release statement and includes forward-looking statements that involve uncertainties and risks. The completion of the tender offer and the subsequent acquisition are subject to various conditions and approvals as outlined in the Purchase Agreement and related SEC filings.

In other recent news, Hyatt Hotels Corporation reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $0.46, surpassing the projected $0.36. Despite a slight revenue shortfall of $1.67 billion against forecasts, the company’s strategic focus on an asset-light model and international markets contributed to a robust performance. The company is also progressing with its acquisition of Playa Hotels & Resorts, having amended the Purchase Agreement to clarify terms related to restricted shares in the tender offer. This acquisition is part of Hyatt’s strategy to enhance its portfolio in the all-inclusive market. Additionally, Jefferies raised Hyatt’s price target to $135, maintaining a Hold rating, reflecting a positive view of the company’s business performance and strategic moves. Hyatt’s expansion efforts include the introduction of a new brand, Unscripted by Hyatt, aimed at upscale travelers, which is part of a broader growth strategy that saw a 10.5% increase in net rooms for its Essentials portfolio. The company continues to expand its Lifestyle and Luxury portfolios, with significant growth and demand expected in the coming years.

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