Hyatt Hotels is selling $1bn of bonds to help fund a portion of its acquisition of Playa Hotels & Resorts for $2.6bn.
The company announced the pricing of its public offering, which includes $500m in senior notes due in 2028 with a 5.050% interest rate and another $500m due in 2032 at a 5.750% interest rate.
The offering is set to close on 26 March 2025, pending customary closing conditions.
Hyatt previously stated that it intends to finance the acquisition cost through new debt, including proceeds from this offering and a portion of a senior unsecured delayed draw term loan facility, which is expected to be funded alongside the acquisition’s closing.
The offering is not dependent on the completion of the Playa Hotels acquisition, nor is the acquisition contingent on the completion of this offering.
BofA Securities, J P Morgan, and Wells Fargo Securities are serving as the representatives of the underwriters and joint book-running managers for the offering.
As of 31 December 2024, Hyatt’s portfolio included more than 1,400 hotels and all-inclusive properties in 79 countries throughout six continents.
Earlier this month, Hyatt Hotels announced an update to its executive team, emphasising a brand-focused approach and organisational flexibility.
As part of this change, Marc Jacheet will assume the role of group president for Europe, Africa, and the Middle East (EAME), officially taking full responsibility on 1 July 2025.
Earlier this year, Hyatt Hotels reported a pipeline of nearly 138,000 rooms.
Alongside this growth, the company restructured its brand categories into five collections to better serve diverse guest preferences while maximising returns for property owners.
