Hyatt to Become Player in All Inclusive Market Jul 19th 2013, 12:46
Hyatt Hotels Corporation plans to enter the all-inclusive arena in conjunction with Playa Hotels & Resorts, which develops all-inclusive resorts. Hyatt said it plans to invest $325 million, including $100 million for 20 percent ownership stake in Playa and $225 million for convertible preferred stock in Playa.
The first two Hyatt-branded all-inclusive resorts will debut in Mexico later this year. Four more Hyatt-branded properties in Jamaica, Mexico and the Dominican Republic are scheduled to open in 2014 and 2015.
In all, Hyatt said Playa plans to operate 13 resorts and 5,800 rooms in the Dominican Republic, Mexico and Jamaica. Six of the 13 resorts (2,800 rooms) will enter into franchise agreements with Hyatt under Hyatt brands. No additional information was available at press time.
Playa will acquire resorts under Hyatt’s brands and operate Hyatt-branded all-inclusive resorts in five Latin American and Caribbean countries through 2018.
According to its Web site, Playa is a private hotel investment company that owns 17 hotels in Mexico and the Dominican Republic. Its portfolio includes Barcelo and AMResorts’ Dreams and Secrets properties.
“The all-inclusive segment has grown rapidly over the past 20 years,” said Stephen Haggerty, global head, real estate and capital strategy for Hyatt, in a prepared statement. “This transaction will position us to introduce Hyatt’s authentic hospitality to a new guest base, while offering great new resort options in sought-after destinations to our existing guests. Our agreement with Playa also provides us with a platform for future global growth in an attractive segment, and our investment is structured to generate strong returns through our common and preferred interests as well as recurring franchise fees.”
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