Hyatt Plans to Enter the All-Inclusive Resort Segment
CHICAGO -- July 19, 2013
Hyatt Hotels Corporation (NYSE: H) today announced that a wholly owned Hyatt
subsidiary plans to enter the all-inclusive segment in partnership with Playa
Hotels & Resorts B.V. (“Playa”). Playa was created with the goal of becoming a
leading owner, operator and developer of all-inclusive resorts. Hyatt expects
to invest a total of $325 million, consisting of $100 million for an
approximate 20 percent ownership stake in Playa and $225 million for
convertible preferred stock in Playa.
Playa’s hotel portfolio will include 13 resorts totaling approximately 5,800
rooms across the Dominican Republic, Mexico and Jamaica. In connection with
the Hyatt investment, Playa will enter into franchise agreements with Hyatt
for six of the 13 resorts, or approximately 2,800 rooms, which will operate
under Hyatt brands following the completion of significant renovations.
Under an agreement with Hyatt, Playa will pursue the acquisition or
development of new all-inclusive resort opportunities under Hyatt’s brands and
it will also have certain rights to operate Hyatt-branded all-inclusive
resorts in five Latin American and Caribbean countries on an exclusive basis
“The all-inclusive segment has grown rapidly over the past 20 years,” said
Stephen Haggerty, global head, real estate and capital strategy for Hyatt.
“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.”
The first two Hyatt-branded all-inclusive resorts, located in Mexico, will be
introduced later this year following multimillion-dollar renovations of
existing properties. Four additional Hyatt-branded resorts in Jamaica, Mexico
and the Dominican Republic are expected to be introduced in 2014 and 2015.
The Hyatt investment is subject to closing conditions, including, among other
things, approval by relevant authorities and completing certain other
transactions. The investment is expected to occur during the third quarter of
2013, although there can be no assurance when or if such transaction will be
The term “Hyatt” is used in this release for convenience to refer to Hyatt
Hotels Corporation or one or more of its affiliates.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global
hospitality company with a proud heritage of making guests feel more than
welcome. Thousands of members of the Hyatt family strive to make a difference
in the lives of the guests they encounter every day by providing authentic
hospitality. The Company’s subsidiaries manage, franchise, own and develop
hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt
Regency®, Hyatt Place® and Hyatt House® ^ brand names and have locations on
six continents. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation
subsidiary, develops, operates, markets or licenses Hyatt Residences^TM and
Hyatt Residence Club^TM. As of March31, 2013, the Company’s worldwide
portfolio consisted of 508 properties in 46 countries. For more information,
please visit www.hyatt.com.
Forward-Looking Statements in this press release, which are not historical
facts, are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Our actual results, performance or
achievements may differ materially from those expressed or implied by these
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assumptions that, while considered reasonable by us and our management, are
inherently uncertain. Factors that may cause actual results to differ
materially from current expectations include, among others, general economic
uncertainty in Latin America and the Caribbean; lack of acceptance of new
brands or innovation; changes in the tastes and preferences of our customers;
the financial condition of, and our relationships with franchisees and our
joint venture partners; risk associated with potential acquisitions, including
governmental approvals; changes in the competitive environment in our industry
and the markets where we operate; changes in federal, state, local or foreign
tax law; and other risks discussed in the Company’s filings with the U.S.
Securities and Exchange Commission, including our Annual Report on Form 10-K,
which filings are available from the SEC. We caution you not to place undue
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