More and more Americans are looking to international travel to take advantage of the strong dollar. In particular, destinations in the Caribbean and Mexico are a top priority for these travelers, which have long been popular venues for Americans on holiday. What has been changing is the type of experiences these same travelers are looking for. Americans are increasingly turning towards more luxurious and possibly even elite options.
As a means of catering to these changing tastes, Hyatt Hotels & Resorts is buying Playa Hotels & Resorts. Playa operates 24 all-inclusive luxury resorts in Jamaica, the Dominican Republic, and Mexico. Hyatt does have a presence in all three markets but this move will increase that presence dramatically and quickly. Hyatt will then likely sell the properties to third parties which they will then manage, which fits the company's asset light business model.
One of the twists is that some Playa-owned properties are branded for several of Hyatt's main competitors, such as Hilton and Marriot. How that plays out remains to be seen as it's unlikely that Hyatt will be able to rebrand a Hilton resort or that Marriot will want to run a Hyatt branded hotel. These are some of the major details that have yet to be worked out in this massive sale.
Hyatt Hotels & Resorts was founded in the1950s and is based out of Chicago, Illinois. What started as a motel near the Los Angeles Airport has since expanded to have a worldwide footprint with more than 1,300 hotels and resorts. The company is known for operating some of the most luxurious resorts in the world as well as regularly appearing on Fortune magazine's "America's Best Companies to Work For" list.