Last week, Hyatt quietly closed on its $2.6bn acquisition of the remaining stake in Playa Hotels & Resorts, a move that’s flown somewhat under the radar but has outsized implications for the luxury all-inclusive space. If you blinked, you might have missed it, but for Hyatt loyalists, especially those who’ve dipped their toes into the Inclusive Collection, this is a pivot point worth paying attention to.
Let’s break it down.
From Stakeholder to Sole Owner
Hyatt has had a relationship with Playa for years. In fact, Playa operated several of Hyatt’s first forays into the all-inclusive category, like Hyatt Ziva and Zilara properties across Mexico and the Caribbean. But as Hyatt continued doubling down on the all-inclusive segment, particularly after its 2021 acquisition of Apple Leisure Group (ALG) it became clear that the brand wasn’t just experimenting anymore. It was building a significant position in the all-inclusive space.
Hyatt has acquired the remaining shares of Playa that it didn’t already own. The $2.6bn move brings all Playa-operated resorts, nearly two dozen of them, directly under Hyatt’s ownership and control. For Hyatt, it’s a natural evolution. For travelers? The devil is in the details.
Why Playa Matters
Playa’s portfolio has long served as the backbone of Hyatt’s Ziva and Zilara brands. If you’ve stayed at Hyatt Zilara Rose Hall in Montego Bay or the expansive Hyatt Ziva Cancun, you’ve already experienced a Playa-managed property, even if you didn’t realize it.
The company specializes in upscale beachfront resorts with large footprints, a strong events and weddings business, and an emphasis on leisure-heavy destinations like the Dominican Republic, Mexico, and Jamaica. In other words, the very places Hyatt has identified as growth vectors in its Inclusive Collection strategy.
Up until now, Hyatt operated these resorts through long-term management agreements with Playa. That structure created a bit of operational distance with Hyatt owning the brand, Playa owned the real estate and did the day-to-day management. Now, with full ownership, Hyatt brings the whole operation in-house. That may sound like a technicality, but it opens the door to deeper integration and tighter control.
What Changes For Hyatt Loyalists?
Let’s start with the good news. Hyatt is now fully in charge of quality, consistency, and (arguably most important for Live And Let’s Fly readers) loyalty integration. While the Ziva and Zilara properties have been part of World of Hyatt for years, this change means Hyatt no longer has to negotiate with a third party to implement loyalty-related decisions.
Expect tighter alignment between elite recognition and resort experience. Most importantly, suite upgrades should be better regulated in a way that some franchisees have been less prone to offer, better point redemption consistency, and more standardized elite perks like Club Lounge access and Privé benefits (for properties that may qualify.)
Moreover, this acquisition signals Hyatt’s continued commitment to maintaining and growing its footprint in the all-inclusive space. That bodes well for World of Hyatt members who’ve come to rely on point-rich redemptions at resorts that often command north of $500 per night in cash rates.
Non-Hyatt Properties
Another key change is for the properties in Playa’s portfolio that are outside of the Hyatt network. Four of them were under the Hilton flag and upon completion, Hilton rewards bookings were cancelled:
“Guests who used Hilton Honors rewards points to book have had their rooms canceled last-minute at the following resorts: Hilton La Romana, an All-Inclusive Family Resort; Hilton La Romana, an All-Inclusive Adult Resort; Hilton Rose Hall Resort & Spa; and Hilton Playa del Carmen, an All-Inclusive Resort.”
‘Some of our newly rebranded resorts are integrating into the World of Hyatt program and no longer participate in other loyalty programs,’ the spokesperson said in an email to TMR. ‘We recognize this may have caused redemption issues for some travelers with existing award reservations made through other loyalty programs, and we sincerely apologize for the frustration this has caused.’ – Travel Market Report
Rose Hall was converted to a Dreams (family all-inclusive) under the Inclusive line, La Romana will become a Dreams (for the family side of the all-inclusive property) and a Secrets (adults-only.) Playa also marketed the Wyndham Alltra Cancun which will transition to the brand’s Sunscape line. From the outside, it appears this will be the nicest Sunscape in the chain which typically caters to the lower end of the all-inclusive market.
A Competitive Shot Across Marriott’s Bow
Let’s not ignore the broader industry context. Marriott has aggressively been expanding its all-inclusive portfolio first with its Autograph Collection all-inclusives and now with its newer Luxury Collection resorts in Mexico and the Caribbean. Meanwhile, Hilton has been playing catch-up through partnerships with local operators (now one fewer option for partners.)
Hyatt, though, has been playing a longer, more strategic game. First it picked up ALG. Then it grew the Inclusive Collection brand architecture. Now it folds in Playa. While competitors are still building out pipelines or trying to slap brand names onto third-party resorts, Hyatt is vertically integrating.
It’s a bold move. Riskier, yes but potentially more rewarding. It also continues Hyatt’s huge bet that the leisure market and all-inclusive space are a better place to grow than business markets. These have traditionally been the more all-weather markets but Hyatt continues to focus on heavy leisure in its acquisitions.
Not Everything Will Be Immediate
Despite the abrupt change for Hilton redemptions, don’t expect overnight transformations. Resort branding changes take time. Staff training, systems migration, and standardization of operations won’t happen at the flip of a switch. For Hyatt brands like Ziva and Zilara, they were already under the umbrella so training staff that the upsells may now be included benefits will take some time.
Sanctuary Cap Cana, for example, fits comfortably within the upper-tier of Hyatt’s all-inclusive aspirations. Jewel Paradise Cove? Maybe less so. Hyatt now has decisions to make about brand alignment, renovation investment, and strategic repositioning. There is no doubt that Hyatt has a plan, but at the time of writing, I couldn’t surface the fate for these particular products.
The All-Inclusive Model: Still Not for Everyone
Let’s not forget, all-inclusive resorts can be polarizing. Some travelers love the ease and predictability. Others find them cookie-cutter or devoid of cultural immersion. It’s targeting vacationers who want a frictionless, sun-soaked escape—and who might otherwise have looked at Sandals or AMResorts. That market is big, loyal, and lucrative. And if Hyatt can deliver superior quality with the backing of World of Hyatt perks, it has a real shot at becoming the go-to choice for high-end all-inclusive travelers.
Conclusion
Hyatt’s full acquisition of Playa Resorts won’t make headlines like a major airline merger or a mega credit card revamp. But for those of us who track the slow, strategic movements in the loyalty and hospitality space, it’s a moment to take note.
More control means more consistency and potentially more value for guests. But it also signals that Hyatt continues to double down on a vision for its future, one that puts leisure travel, and the all-inclusive segment specifically, at the heart of its global strategy.
For World of Hyatt elites, this could be the beginning of an even more integrated and rewarding all-inclusive experience. For Hyatt’s competitors, it’s clear that Hyatt isn’t just trying to become competent in the space but to dominate it.
What do you think?
“Hyatt, though, has been playing a longer, more strategic game.”
This is NOT true.
Hyatt has had no strategic game.
Against its significant full-service hotel deficit in North America and facing zero demand by owners or developers to build new full-service hotels under the Hyatt Regency or Grand Hyatt brands (or convert existing properties), Hyatt has had to find niche boutiques and resorts, mostly all-inclusives, to produce the kind of growth that investors want to see.
Meanwhile, Hyatt’s limited full-service portfolio in North America consists of a lot of tired 1970s and 1980s hotels that are approaching 50 years of age and, in many cases, need extensive (and expensive) renovations to be competitive 4-star hotels.
Hyatt is playing a strategic game – and I think a good one – in the market they have to play in
You don’t see huge pipelines of Marriott Marquis, Sheratons, or “name brand Hilton/Marriott” flags either – developers either want to build ultra luxury (so they can sell condos) or ultra flexible, low-entry point hotels which is how you get growth in select service (Hyatt Place, Tru, Spark) or boutiques (Unbound, JdV, Curio, Autograph).
I’m sure Hyatt would love a bunch of GH builds in major US cities – those cities aren’t getting a Hilton/Marriott comparable either.
I’ll take the all-inclusive + standard + unbound-esque hotel growth over Marriott and Hilton’s current plan to grow into as many budget select hotels as possible
“You don’t see huge pipelines of Marriott Marquis, Sheratons, or “name brand Hilton/Marriott” flags either – developers either want to build ultra luxury (so they can sell condos) or ultra flexible, low-entry point hotels which is how you get growth in select service (Hyatt Place, Tru, Spark) or boutiques (Unbound, JdV, Curio, Autograph).”
That’s because virtually every U.S. market that can support a Marriott, Sheraton, JW Marriott, etc. already has one. Marriott is tapped out on full-service properties.
Plus, owners, who often own multiple hotels, don’t want to build a new 300-room Hyatt Regency when they already own the 250-room Marriott and 275-room Sheraton. They would just cannibalize their existing property or properties in a given market. That’s one of the flaws of an asset-light hotel company. You are wholly dependent upon others to build and own your hotels.
Right — so Hyatt is playing the best strategic game in a market where developers have no interest in developing HR/GH esque properties
And for what it’s worth, I’m sure if Marriott or Hilton could get someone to build something half decent and new in Boston/Philly like a JW or Conrad, they’d be all over it. Both are great markets with very poor big 3 saturation unless you enjoy staying next to Mass General or at a Sheraton half converted to BU dorms.
Many complain that they don’t get their benefits in Hyatt’s outside the US with little recourse. I doubt this will change in these properties either.
As for the All Inclusive model, thanks for saying it’s not for everyone. I personally can’t imagine traveling anywhere and not hitting the locals spots for food and drinks. But we also know there is a certain segment of the population that feels a Carnival Cruise is a good time and value.
What are you talking about? Who complains about this? Maybe this is a problem in the Caribbean, but my Globalist benefits go MUUUUCCCHH farther in Asia, Europe, and the Middle East, than they ever do in the U.S. Plus, front desk staff are more likely to go above and beyond and thank you for being a Globalist at hotels in these regions. If anything, I find U.S. hotels offer way fewer perks to Globalists: they rarely have club lounges and almost never leave me a bottle of wine in the room, whereas outside of North America, it’s not just common to have a nice welcome amenity, I’ve come to expect it, given such amenities are offered 95% of the time.
Read Matt’s and other comments on her and Reddit about issues with Hyatt’s in Mexico in getting benefits. It’s very commonplace, even taking that it’s Reddit into consideration.
Also note THIS story is about an acquisition in Mexico and the Caribbean. Your experiences in the 3rd world have nothing to do with this situation. But I could see how those towel heads, terrorists and child sellers would be happy to take your American cash and thank you for it.
Meanwhile enjoy the grind of the “business” world and your travel thinking you are important clown.
For sure. There are almost no Hyatts in the USA with open and operational club lounges. As for welcome amenities? I can’t remember the last time I received a globalist welcome amenity at a Hyatt in the USA. Internationally, I at least get a personally addressed welcome letter or card with every stay.
+1
Ziva , Zilaro , Zorro , and zylofono .
I have photos of Ziva when it opened as the Camino Real. The pyramid was the only building on a gorgeous peninsula that looks like Manhattan now ). It had a natural lagoon with sea turtles on my balcony ( the lagoon is now a concrete pool for swimming with dolphins ).
It was architecturally beautiful and while I am happy to see a vestige of the exterior remain, I would never return to see what it has become.
On the point that All Inclusives aren’t for everyone – I wonder if some of these become Aula esque and offer half-board packages?
The new Hyatt Vivid strikes me as a location that could probably get me at a half board rate, but I would hate to limit myself to just resort food and activities in such a good location. I know it’s probably not the brand standard they’re looking for with Vivid, but I could see it in some of these other acquired locations…
Hyatt has oversubscribed to the AI market. That wouldn’t be a problem except they’re ignoring what made them successful in the first place: quality full service hotels. If Hyatt can now refocus on those Hyatt/Hyatt Regency/Thompson/Grand Hyatt hotels, increasing their number and bringing lagging or aging properties back up to snuff then this should work out well. If not, Hyatt is only hanging on to a lot of loyalty members because Marriott and Hilton keep screwing over loyal members worse than Hyatt. Being least bad isn’t something to cheer about. How about Hyatt insisting that all full service hotels have an operational club lounge in the next 12 months? That shouldn’t even be a tough ask but when Hyatt is distracted by their shiny new toys, other things get ignored.