FAIRFAX, VA—Playa Hotels & Resorts N.V. entered a definitive agreement for a business combination with Sagicor Group Jamaica Limited whereby Sagicor will contribute to Playa a portfolio of five all-inclusive resorts and two adjacent oceanfront developable land sites located on the desirable North Coast of Jamaica.
The portfolio includes four existing resorts: the 489-room Hilton Rose Hall, the 268-room Jewel Runaway Bay, the 250-room Jewel Dunn’s River and the 225-room Jewel Paradise Cove. It also includes an 88-room hotel tower and spa, two developable land sites with a potential density of up to 700 rooms and a hotel management contract for the Jewel Grande Palmyra. The existing assets are currently managed by an external third-party operator and upon closing of the transaction, Playa will be able to immediately internalize and self-manage the assets.
In exchange, Sagicor will receive 20 million shares of PLYA common stock and $100 million in cash. In addition, Playa has agreed to nominate two Sagicor appointees for election to Playa’s board of directors in connection with the consummation of the transaction.
“Playa’s development track record, management expertise, strong regional presence and deep customer relationships will contribute significantly to improving the Sagicor portfolio performance,” said Bruce Wardinski, chairman and CEO of Playa Hotels & Resorts. “Most importantly, this transaction provides Playa with multiyear, built-in growth opportunities, which we expect will drive outstanding financial returns,” Wardinski continued.
Playa currently owns and operates the Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall in Jamaica. This new business combination with Sagicor will make Playa one of the largest resort owners and operators in Jamaica—both in the total number of rooms and number of brands under management.
Richard Byles, chairman of Sagicor, one of the two Sagicor appointees that will be nominated for election to Playa’s board, stated, “This business combination will be a great benefit to the country of Jamaica, and represents a unique opportunity for growth and development for the people of Jamaica and the tourism sector. It will also create exceptional financial opportunities for Playa taking advantage of Jamaica’s combined attributes of tropical climate, attractive beachfronts, culture, airlift, proximity to U.S. markets, high stabilized occupancy levels versus other Caribbean destinations, and supportive government agencies.”