Playa Inns’ (PLYA) shares surged Monday after the resort operator stated it has entered into an settlement to discover a possible acquisition by Hyatt Inns (H).

The perimeters will talk about «strategic choices,» together with a possible acquisition, and the settlement will final both till a deal has been made, or by way of Feb. 3, Playa stated Monday.

Hyatt Chief Govt Officer Mark Hoplamazian on Monday referred to as Playa a «precious companion for a few years,» and stated a possible deal may «have compelling strategic benefit so as to add new incremental sturdy charge streams for Hyatt.»

Playa Inns Runs Resorts in Mexico, Jamaica, Dominican Republic

Playa operates two dozen resorts with greater than 8,600 rooms throughout Mexico, Jamaica, and the Dominican Republic, below manufacturers together with Hyatt, Hilton (HLT), and Wyndham (WH). Hyatt operates greater than 1,300 lodges throughout 79 international locations.

In its newest earnings call final month, Playa CEO Bruce Wardinski reiterated Playa’s perception that there’s «large alternative» for consolidation within the all-inclusive resort business. When discussing a deal Hyatt had made with one other resort firm that operates in among the identical markets as Playa, Wardinski stated Hyatt was «simply actually good strategically» and stated the deal seemingly would not have a lot influence on Playa’s enterprise.

Hyatt shares had been practically 2% decrease Monday. Playa shares had been up about 28%, pushing them better than 40% increased on the 12 months.