Hyatt’s $2.6 billion Playa acquisition includes debt

Hyatt Hotels Corporation (NYSE:H) announced today that it is moving forward with its acquisition of Playa Hotels & Resorts N.V. for approximately $2.6 billion, including roughly $900 million of net debt. The transaction, which was initially revealed on February 9, 2025, involves Hyatt acquiring all outstanding shares of Playa at $13.50 per share.

The company also reported in its latest 8-K filing with the Securities and Exchange Commission that between February 14, 2025, and March 14, 2025, it repurchased 1,078,511 shares of its Class A common stock, spending about $149 million. Following these repurchases, Hyatt has approximately $822 million left under its current share repurchase authorization as of today. InvestingPro data confirms management’s aggressive share buyback strategy, with the company maintaining moderate debt levels and a solid current ratio of 0.83.

Hyatt’s SEC filing further included audited financial statements of Playa as of December 31, 2024, and unaudited pro forma condensed combined financial statements to give effect to the acquisition. Deloitte & Touche LLP, as independent auditors, has audited Playa’s financial statements and consented to the incorporation of their report in Hyatt’s SEC filings.

The acquisition is subject to customary closing conditions, including regulatory approvals and the tender of a majority of Playa’s outstanding shares. Hyatt’s filing also detailed additional risks related to the transaction, supplementing the risk factors described in the company’s Annual Report for the fiscal year ended December 31, 2024.

The transaction is expected to expand Hyatt’s resort portfolio, as Playa owns and operates all-inclusive resorts. The deal reflects Hyatt’s strategic focus on growing its brand footprint and enhancing its resort offerings.

This news comes as the hospitality industry continues to recover from the impacts of the global pandemic, with companies like Hyatt looking to bolster their market positions through strategic acquisitions.

For further information, Hyatt’s SEC filing provides details on the financial aspects and risks associated with the Playa acquisition. The filing is based on a press release statement and contains forward-looking statements regarding the anticipated benefits and completion of the transaction.

In other recent news, Hydro One Limited (TSX:H) reported its fourth-quarter 2024 earnings, highlighting a steady increase in profits with earnings per share (EPS) rising to $0.33 from $0.30 in the same quarter last year. The full-year EPS reached $1.93, up from $1.81 in 2023, while net income grew by 6.5% for the year. Meanwhile, Delta Air Lines (NYSE:DAL) announced a significant reduction in its profit guidance due to decreased consumer spending, impacting the broader travel sector. American Airlines (NASDAQ:AAL) followed suit, revising its expectations to a loss of up to 80 cents per share for the first quarter, doubling its previous estimate. In the hospitality sector, Bernstein SocGen Group maintained an Outperform rating for Hyatt Hotels Corporation, with a price target of $173.00, following the introduction of a new brand, Hyatt Select, targeting the Upper Midscale market. The market remains cautious amid these updates, particularly concerning the travel industry as it heads into 2025. Investors are closely watching these developments for potential impacts on stock performance.

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