On Monday, Hyatt Hotels (NYSE:H) entered exclusive negotiations with Playa Hotels & Resorts (NASDAQ:PLYA) N.V. as part of potential strategic moves for the resort operator valued at $1.2 billion.
The announcement led to an increase in Playa's share price by approximately 11% before market opening, and a 1% rise in Hyatt's stock.
Playa, which manages 24 luxury, all-inclusive resorts across Mexico, has been exploring various opportunities and has been in discussions with several interested parties. The company's board is actively examining these options for potential growth and value enhancement.
The period of exclusive dialogue with Hyatt, which currently holds a 9.99% stake in Playa, is set to last until February 3, or until an agreement is reached. However, Playa has stated that there is no certainty that this will result in a transaction.
The two companies are not strangers to collaboration; Playa operates resorts under the Hyatt Ziva and Hyatt Zilara brands, which are part of their existing partnership. According to data from the London Stock Exchange Group (LON:LSEG), Playa's market capitalization stands at $1.2 billion.
Hyatt, based in Chicago, Illinois, has expressed that the strategic options under review could provide significant and lasting new fee-based revenue streams. Nevertheless, the company has reaffirmed its commitment to maintaining an asset-light business strategy.
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