Hyatt Closes on Deal With Playa Hotels & Resorts
Hyatt Hotels Corporation came one step closer to entering the all-inclusive market with the closing of its investment in Playa Hotels & Resorts, which develops all-inclusive resorts. The affiliation will also enable Hyatt to expand into the Caribbean and Latin America, where Playa is a player.
The agreement calls for a roster of 13 all-inclusive resorts and 5,800 rooms for Playa in the Dominican Republic, Mexico and Jamaica. Hyatt will enter into franchise agreements for six of the properties, accounting for 2,800 rooms. They will be operated under the Hyatt brand. The first two – the Barcelo Los Cabos and The Royal Cancun – are scheduled to enter service as Hyatt-branded all-inclusives later this year following renovations. Others will open in in 2014 and 2015.
The agreement also states that Playa have rights to operate Hyatt-branded all-inclusives in five Latin American and Caribbean countries through 2018.
Hyatt’s move to enter the all-inclusive market has a two-fold benefit, said Bjorn Hanson, divisional dean of New York University’s Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management. “Hyatt has fewer segments than some other of the major brand management companies like Marriott, Starwood and Hilton and this is a way for it to expand its portfolio. Also, opportunities in the Caribbean and South America are extremely important for any lodging company.”
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