Hyatt Hotels Corp. has executed an exclusivity agreement with owner, operator and development company Playa Hotels & Resorts under which Playa has agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives, which may include the acquisition of Playa by Hyatt. According to a statement from Playa, the exclusivity agreement will remain in place until the earlier of the execution of a definitive agreement for such transaction or 11:59 p.m. New York City time on Feb. 3. Playa’s Board of Directors has been “evaluating opportunities to maximize value for shareholders” and has engaged with a number of potential counterparties.
“Playa has been a valuable partner for many years, is one of the world’s strongest operators of all-inclusive resorts and owns a premier portfolio of high-quality, high-end, all-inclusive resorts in iconic locations and key markets across the Caribbean and Mexico,” Hyatt President and CEO Mark S. Hoplamazian said in a statement. “Strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams for Hyatt. We remain steadfastly committed to our asset-light business model and if this process continues, we will continue to map out a clear path for an asset-light outcome for any strategic alternatives we undertake.”
“Our Board and management team regularly review our structure, strategy and opportunities to enhance shareholder value, and we are pleased to enter into exclusive discussions with Hyatt regarding potential strategic options,” said Bruce D. Wardinski, chairman and CEO of Playa Hotels & Resorts. “Hyatt’s interest in our company is a testament to the strength of our business and the dedication of our incredible Playa team. The Playa Board and management team will remain open-minded and continue to act in the best interests of all Playa shareholders.”
Hyatt noted that “there can be no assurances” that any transaction will result from these discussions or on what terms any possible transaction might take place. Similarly, neither Hyatt nor Playa intends to comment further on the discussions—“unless and until a definitive agreement has been fully executed.”
As required by federal securities laws, Hyatt, which is the beneficial owner of 9.99 percent of Playa’s outstanding shares, has filed an amendment to its Schedule 13D with the U.S. Securities and Exchange Commission to disclose these discussions.
PJT Partners is serving as financial advisor to Playa Hotels & Resorts and Hogan Lovells is serving as legal counsel.