Truist Securities analysts reaffirmed a Buy rating and a $13 price target on Playa Hotels & Resorts (NASDAQ:PLYA), highlighting the potential for a strategic transaction with Hyatt Hotels. Public filings reveal that Playa is in exclusive talks with Hyatt regarding “strategic options,” a development that could result in a sale of the company.
Hyatt currently holds a 9.9% stake in Playa and has brand ownership of several of Playa’s all-inclusive properties, including the highly-rated Ziva and Zilara hotels. The exclusivity period for these discussions runs until February 3, 2025.
Playa’s openness to a sale is unsurprising, as the company has consistently signaled its belief that its shares are undervalued on the public market. While a private buyer, such as a high-net-worth family, had been considered the more likely acquirer given Hyatt’s recent shift toward an asset-light strategy, this potential transaction underscores Hyatt’s continued interest in strategic assets that align with its portfolio.
Although the deal is not finalized, the analysts view the likelihood of completion as more probable than not, emphasizing that Playa’s shares could be worth at least $13—or potentially higher—if the transaction proceeds.