 "Hyatt in exclusive talks with Playa Hotels on options, including buyout")
Hyatt Hotels is in exclusive talks regarding a potential takeover of Playa Hotels & Resorts N.V. among other strategic options for the $1.2 billion resort operator, the companies said on Monday.
Playa's shares rose about 11 per cent before the bell, while Hyatt's stock price gained 1 per cent.
Playa, which runs 24 high-end, all-inclusive resorts across Mexico, said its board has been evaluating opportunities and has engaged with a number of potential counterparties.
The exclusive talks with Hyatt, which has a 9.99 per cent stake in Playa, will run through Feb. 3 or until a deal is struck, Playa said, cautioning there was no guarantee of any transaction.
Playa is already in a partnership with Hyatt, through which it operates resorts under the Hyatt Ziva and Hyatt Zilara brands. Its market value is $1.2 billion, per LSEG data.
"Strategic alternatives under consideration could have compelling strategic merit to add new incremental durable fee streams," Chicago, Illinois-based Hyatt said, although it added it was committed to its asset-light business model.
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PJT Partners LP is Playa's financial advisor and Hogan Lovells is its legal counsel.
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