Hyatt in exclusive talks with Playa Hotels on options, including buyout

(Reuters) – Hyatt Hotels (NYSE:H) is in exclusive talks regarding a potential takeover of Playa Hotels & Resorts (NASDAQ:PLYA) N.V. among other strategic options for the $1.2 billion resort operator, the companies said on Monday.

Playa’s shares rose about 11% before the bell, while Hyatt’s stock price gained 1%.

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% 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.

Companies in the hospitality sector are navigating challenges in global travel demand as American and Chinese consumers remain cautious of macroeconomic trends.

PJT Partners (NYSE:PJT) LP is Playa’s financial advisor and Hogan Lovells is its legal counsel.