CHICAGO--(BUSINESS WIRE)--Jul. 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 through 2018.
“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 completed.
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 ResidencesTM
and Hyatt Residence ClubTM. As of
March 31, 2013, the Company’s worldwide portfolio consisted of 508
properties in 46 countries. For more information, please visit www.hyatt.com.
Forward-Looking Statements
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 forward-looking statements. In some cases,
you can identify forward-looking statements by the use of words such as
“may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “continue,” “likely,”
“will,” “would” and variations of these terms and similar expressions,
or the negative of these terms or similar expressions. Such
forward-looking statements are necessarily based upon estimates and
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 reliance on any forward-looking statements, which are
made as of the date of this press release. We undertake no obligation to
update publicly any of these forward-looking statements to reflect
actual results, new information or future events, changes in assumptions
or changes in other factors affecting forward-looking statements, except
to the extent required by applicable laws. If we update one or more
forward-looking statements, no inference should be drawn that we will
make additional updates with respect to those or other forward-looking
statements.
Source: Hyatt Hotels Corporation
Hyatt Hotels Corporation
MEDIA CONTACT:
Farley Kern
312
780 5506
farley.kern@hyatt.com
INVESTOR
CONTACT:
Atish Shah
312 780 5427
atish.shah@hyatt.com