16 hours ago
Hyatt's Playa acquisition has big impact on Hilton's all-inclusive portfolio
With Hyatt nearing the completion of its acquisition of Playa Hotels & Resorts, Hyatt plans to convert five of Playa's all-inclusive resorts to Hyatt-owned brands. Four of those resorts are currently Hiltons.
According to a research note from Baird Equity Research's Michael Bellisario, the impacted properties are the Hilton Playa del Carmen, which is switching to the Hyatt Vivid brand; the Hilton La Romana family and adults-only resorts in the Dominican Republic, which will switch to Dreams and Secrets; and the Hilton Rose Hall in Jamaica, which is reflagging to Dreams.
Additionally, the Wyndham Alltra Cancun is becoming the Sunscape Cancun Resort & Spa.
The Jewel Grande Montego Bay Resort & Spa in Jamaica and the Wyndham Alltra Playa del Carmen appear to be remaining under their current branding. (Playa owns the Jewel brand.)
The conversions reduce Hilton's all-inclusive portfolio to a dozen properties across Mexico, Curacao, the Dominican Republic, Greece and Turkiye. While Bellisario said losing those resorts won't likely have a material impact on Hilton's earnings, he called it a "strategic loss."
Playa's Hyatt-branded portfolio includes the Hyatt Ziva Cancun, Hyatt Zilara Cancun, Hyatt Ziva Los Cabos and Hyatt Ziva Puerto Vallarta in Mexico; the Hyatt Ziva Cap Cana and Hyatt Zilara Cap Cana in the Dominican Republic; and the Hyatt Ziva Rose Hall and Hyatt Zilara Rose Hall in Jamaica.
Hyatt struck the deal to acquire Playa for approximately $2.6 billion in February.
