Hyatt Expands in Mexico, the Caribbean, and Las Vegas Amid Asset-Light Shift

Hyatt Hotels Corporation (NYSE: H) is deepening its presence in key leisure markets with a planned acquisition of Playa Hotels & Resorts, announced in February. The deal aims to strengthen Hyatt’s foothold in Mexico and the Caribbean while aligning with its asset-light strategy. As part of this approach, Hyatt intends to sell Playa’s owned properties to third-party investors.

This follows Hyatt’s expansion in Las Vegas, where it secured a long-term licensing agreement with The Venetian Resort late last year. The deal will integrate The Venetian and its sister property, The Palazzo, into Hyatt’s booking platforms, further extending its reach in a key U.S. hospitality market.

In its latest earnings report, the company posted a slight revenue decline of -0.3% year-over-year to $6.6 billion for 2024. Revenue from owned and leased properties fell -12% to $1.2 billion, reflecting the company’s efforts to reduce direct property holdings. In contrast, management and franchise fees—key components of Hyatt’s asset-light strategy—rose +13% to $1.1 billion.

This trend is expected to continue in 2025. Analysts project owned and leased hotel revenues will decline by -33% in the first quarter and -15% for the full year. Meanwhile, management and franchise fees are forecast to rise +9% in Q1 and +10% for the year.