Hyatt Hotels Corporation H has left no stone unturned to expand its portfolio and strengthen the company’s position in the hospitality sector. The company is not only focusing on new hotel openings but also concentrating on acquisitions.

Recently, the company entered into exclusive discussions with Playa Hotels & Resorts N.V. PLYA regarding potential strategic options, including the possible acquisition of Playa.

Playa Hotels & Resorts, known for its all-inclusive resort offerings, presents an attractive opportunity for Hyatt to enhance its presence in key leisure markets. The potential acquisition underscores Hyatt’s focus on driving shareholder value and expanding its global footprint.

Playa Hotels & Resorts’ board of directors has been proactive in exploring avenues to maximize shareholder returns, engaging with multiple potential partners before entering exclusive talks with Hyatt. This decision indicates management’s commitment to identifying strategic options that align with the interests of its stakeholders.

While the discussions are promising, there is no guarantee of a definitive agreement or transaction. Terms and timing remain uncertain and both parties are navigating the complexities of such a strategic move.

Hyatt has consistently demonstrated its ability to adapt and grow through strategic acquisitions. If successful, this partnership could solidify its position as a leader in the leisure and all-inclusive segments.

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Acquisition & Divestitures as Hyatt’s Growth Strategies

Hyatt is strongly invested in the strategies related to various acquisitions and divestitures that can drive growth for it. In the last six years, the company generated substantial funds through the divestment of company-owned hotels and the proceeds were strategically reinvested in asset-light acquisitions.

In October, the company completed the acquisition of Standard International, which includes the Standard, StandardX and Bunkhouse brands, enhancing its position in the lifestyle segment. This acquisition added 22 hotels with approximately 2,000 rooms. In the same month, the company also announced the signing of a long-term strategic joint venture agreement with Grupo Piñero to manage Bahia Principe hotels and resorts.

In June, Hyatt announced the acquisition of the Me and All Hotels brand from Lindner Hotels Group. This acquisition is expected to accelerate the brand's growth, particularly in the fast-growing upscale segment in Europe. The Me and All Hotels brand, known for its high margins and adaptability to conversions, aligns well with Hyatt's strategy to expand in key Europe’s markets.

In the past year, the company’s shares have increased 22.1% compared with the industry’s growth of 28%.

H’s Zacks Rank and Stocks to Consider

Hyatt currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Consumer Discretionary sector have been discussed below.

Cinemark Holdings, Inc. CNK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

CNK delivered a trailing four-quarter earnings surprise of 164.8%, on average. The stock has surged 116.4% in the past year. The Zacks Consensus Estimate for CNK’s 2025 sales indicates growth of 11.1% from the year-ago levels.

Norwegian Cruise Line Holdings Ltd. NCLH currently has a Zacks Rank #2. NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 24.7% in the past year.

The Zacks Consensus Estimate for NCLH’s 2025 sales and earnings per share (EPS) indicates growth of 8.4% and 25.4%, respectively, from the year-ago levels.

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Hyatt Hotels Corporation (H) : Free Stock Analysis Report

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Playa Hotels & Resorts N.V. (PLYA) : Free Stock Analysis Report

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