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5 things to know for Dec. 23

Today's headlines: Hyatt, Playa announce exclusive deal talks; Workers at San Francisco Hyatt approve new deal; A new era of luxury in Kuala Lumpur; Travelers brace for busy week; Top Latin American online travel agency sells for $1.7 billion
Roughly 1,000 workers at the Grand Hyatt San Francisco unanimously approved a new contract to end a strike on Dec. 21, 2024. (CoStar)
Roughly 1,000 workers at the Grand Hyatt San Francisco unanimously approved a new contract to end a strike on Dec. 21, 2024. (CoStar)
Hotel News Now
December 23, 2024 | 4:15 P.M.

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1. Hyatt, Playa announce exclusive deal talks

Hyatt Hotels Corp. and Playa Hotels & Resorts have confirmed the two companies are in exclusive negotiations for Hyatt to acquire Playa. Playa is an owner, operator and developer of all-inclusive resorts in Mexico and the Caribbean and currently holds multiple Hyatt, Hilton and Wyndham properties, along with several other brands.

In its announcement, Playa said the company "has been evaluating opportunities to maximize value for shareholders and has engaged with a number of potential counterparties," and has an exclusivity agreement with Hyatt for negotiations through Feb. 3, 2025.

Hyatt President and CEO Mark Hoplamazian said a potential deal "could have compelling strategic merit to add new incremental durable fee streams for Hyatt." But it remains to be seen how a potential acquisition of a resort ownership group fits into the company's long-term plans to sell off real estate.

"We remain steadfastly committed to our asset-light business model and if this process continues, we will continue to map out a clear path for an asset-light outcome for any strategic alternatives we undertake,” Hoplamazian said in a statement.

2. Workers at Grand Hyatt San Francisco approve new deal

Union officials representing the 1,000 striking employees at the Grand Hyatt San Francisco announced a unanimously ratified agreement for a new contract with Hyatt. The San Francisco Examiner reports the deal came in quick succession after a deal for Marriott workers in the city.

The last hotel facing strikes in San Francisco is the Hilton San Francisco Union Square, where 650 workers walked off the job, but Unite Here Local 2 leaders say workers at the Parc 55 could soon join them.

Union officials thanked San Francisco Mayor-elect Daniel Lurie for helping to facilitate a deal.

“Mayor-elect Lurie reached out to us following his election and made some calls to key hotel owners that got the ball rolling here,” Ted Waechter, a spokesman for Unite Here Local 2, told the news outlet.

3. A new era of luxury in Kuala Lumpur

While the property isn't slated to open until 2027, The signing of The Langham, Kuala Lumpur signifies the start of a new era for the Malaysian capital, HNN contributor Tamara Thiessen reports.

Kuala Lumpur is working to catch up on its luxury offerings compared to other Asia-Pacific gateway markets such as Bangkok and Singapore.

Other luxury hotels in the development pipeline include a Waldorf Astoria for 2026 and a Kimpton Hotels & Restaurants’ property in The Exchange TRX financial district in 2025.

“Luxury is in vogue in [the city] with a number of new openings,” said Matthew Burke, STR’s regional director for Asia-Pacific.

4. Travelers brace for busy week

NPR reports winter weather could complicate what's expected to be a record-setting holiday travel season.

The news outlet reports: "Rain and snow showers have impacted the Pacific Northwest since Saturday, while in the Northeast and areas around the Great Lakes, cold air from the Arctic has sent temperatures plunging, according to the National Weather Service."

AAA projects 119.3 million people will travel 50 miles or more between Dec. 21 and Jan. 1, a new record. It would outpace the previous record set in 2019 by 64,000 travelers.

5. Top Latin American online travel agency sells for $1.7 billion

International investment group Prosus, which is listed in Amsterdam, announced a $1.7 billion cash deal to buy Despegar — the largest online travel agency in Latin America — The Wall Street Journal reports. The deal comes out to $19.50 a share, which marks a 33% premium on the online travel agency's closing share price from Friday.

Despegar was found in 1999 in Argentina, and is currently listed on the New York Stock Exchange. The newspaper added Despegar processes 9.5 million transactions each year and had $5.3 billion in gross bookings in 2023.

The deal is expected to close in the second quarter of 2025.

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