Originally Posted by
lincolnjkc
From the linked release...
It seems that Hyatt wants the brand/platform and not the physical assets so it's likely either (a) they'll sell off the Hilton branded properties to a 3rd party that may or may not continue to manage them as Hiltons, or (b) they'll sell to the adjacent Hyatt operator who would manage as Hilton until either the franchise agreement runs out on its own terms or they negotiate an early out
I wouldn't expect any changes for months if not longer, practically.
Hyatt don't need the brand (they have plenty of brands already) nor the platform (they also have ALG and MMS already). What they want is the management right and the annual management fees associated with the properties. Therefore both your scenarios will NOT happen.
100% Hyatt will convert the existing Playa-owned properties to Hyatt brands (if they're not Hyatt already) then sell the physical properties and retain management right via long-term management contract. This is what they have done in recent years, since they pursuit the asset-light strategy.
For the Playa-managed properties, there're 2 directions that the owners can choose:
- They cut the franchise contract with the current brand and sign new management contract with Hyatt => that property will become a Hyatt under a suitable brand.
- They cut the management contract with Playa and hire a new management company. From there, they can either (a) keep the current brand, (b) go fully independent, or (c) franchise a new brand.
These properties will definitely exit Hilton portfolio:
- Hilton Playa del Carmen All-Inclusive Resort
- Hilton La Romana, All-ages
- Hilton La Romana, Adults-only
- Hilton Rose Hall
The only property that might stay Hilton is The Yucatan Playa del Carmen, Tapestry Collection by Hilton, but just might.