Hyatt to brand all-inclusive resorts in Mexico and the Caribbean

Hyatt Hotels Corp. will enter the all-inclusive market in partnership with Playa Hotels Resorts, a U.S.-based company that owns and operates all-inclusives in the Dominican Republic, Jamaica and Mexico.

Hyatt will invest $325 million in Playa — $100 million for an approximate 20% ownership stake in Playa and $225 million for convertible preferred stock in Playa.

The transaction is expected to close by the end of September, subject to approval by relevant authorities.

Playa’s 17 resorts operate under the Barcelo flag and AMResorts’ Secrets and Dreams flags. The plan is to renovate and convert six of those resorts to the Hyatt brand under franchise agreements, and to pursue further acquisitions or developments for Hyatt brands.

In a statement, Hyatt said, “”We will be in a position to share more information, including which of the resorts will be Hyatt-branded, once the transaction closes.”

“This transaction will position us to introduce Hyatt’s authentic hospitality to a new guest base, while offering new resort options in sought-after destinations to our existing guests,” said Stephen Haggerty, Hyatt’s global head of real estate and capital strategy.

Follow Gay Nagle Myers on Twitter @gnmtravelweekly.