Bernstein: Hyatt's acquisition of Playa will be the most transformative deal in nearly three years.

Berenberg analysts said on Monday that if Hyatt (H.US) acquires Playa Hotels & Resorts N.V., it would be the most transformative deal for the hotel giant since acquiring Apple Inc. Leisure Group in 2021. The firm rates Hyatt as "outperforming the market" with a target price of $188, representing a potential upside of 17.6%. The research firm pointed out that Hyatt's management has successfully achieved multiple strategic goals simultaneously, and if the acquisition of Playa Hotels goes through, it will not dilute the company's focus on potential prospects. Berenberg analysts stated, "Hyatt has been actively seeking growth in the all-inclusive hotel business, and Playa will add more small/boutique hotels to its existing large hotel base. They can also acquire some hotels directly from competitors to expand their market share in the sector. Playa will also see growth." The firm said, "Although the acquisition is not yet confirmed, this would be a significant transaction for Hyatt." "Playa is largely an asset-heavy business (owning 16 out of 24 hotels it operates), and Hyatt may consider selling real estate... Therefore, the true value of this deal will depend on how much real estate value can be recovered, which may take many years to determine."