Shares of Playa Hotels & Resorts NV soared on Thursday to new all-time highs after Hyatt Hotels Corporation extended its exclusive agreement which may lead to an eventual acquisition of Playa by Hyatt.

Playa traded at a record high of US$13.14, which not only left the stock up by more than 35 per cent over the last two months but also pushed the company’s market capitalisation to over US$1.58 billion. Playa signed an agreement with Hyatt in December to enter exclusive strategic discussions, which included the possibility of Hyatt acquiring Playa in its entirety. That agreement was set to end on Monday but was extended by a week to February 10. Hyatt currently owns about 10.22 per cent of Playa through some of its subsidiaries.

If Hyatt were to acquire Playa, it would see its Jamaican hotel portfolio rise to seven properties after incorporating the three properties it got from the previous acquisition of Apple Leisure Group (ALG) and AMResorts collection, along with the four proprietary hotels owned by Playa. Playa announced in December that it was selling Jewel Paradise Cove Beach Resort & Spa in Runaway Bay, St Ann, for a consideration of US$28.5 million ($4.41 billion). That 225-room resort sale should be complete in the current first quarter.

Playa’s fourth-quarter report will be released after 4:00 pm on February 25, with the earnings call to take place the following morning. It had the grand opening for the Paraiso de la Bonita, a Luxury Collection Resort, Riviera Maya, Mexico, on January 30, which is the latest managed resort under its portfolio.

Playa’s Jamaican portfolio reported a net 14 per cent dip in owned resort revenue to US$147.03 million for Jamaica over the nine months as average occupancy dipped from 80.8 per cent to 72.9 per cent due to the impact of the US State travel advisory and Hurricane Beryl. Owned resort EBITDA also dipped by a third to US$43.36 million.

The Sangster International Airport (SIA) reported a three per cent dip in total terminal passengers from 5.21 million to 5.06 million passengers for 2024 while the Norman Manley International Airport (NMIA) saw a two per cent rise in total terminal passengers from 1.75 million to 1.78 million passengers. For the month of January, SIA reported a seven per cent dip in total terminal passengers from 491,900 to 456,200 passengers, while NMIA had a 13 per cent improvement from 148,400 to 167,000 passengers.

Sagicor Financial Company Limited (SFC), a 9.24 per cent owner in Playa, saw its share price hit a 52-week high of CA$8.40 on Thursday. SFC’s average Playa share price is around US$4.85 per share. SFC Chairman Mahmood Khimji currently sits on Playa’s board of directors.

Hyatt’s own stock is currently trading at record highs of US$165.54, which leaves it with a market capitalisation of US$15.90 billion. Hyatt’s fourth quarter results will be published before the stock market opens on February 13, with the earnings call taking place at 10:00 am.