WHY IT RATES: Playa Hotels & Resorts received the 2018 Transaction of the Year award at CHRIS. -Codie Liermann, Associate Editor
Playa Hotels & Resorts, an owner, operator and developer of premium all-inclusive resorts, was awarded the 2018 Transaction of the Year Award at the Caribbean Hotel & Resort Investment Summit (CHRIS) for the Company's $300 million business combination with certain companies affiliated with Sagicor Group Jamaica Limited ("Sagicor"). Playa assumed management of the resorts from a third party following the close of the transaction.
The deal resulted in the strategic redirection of the sales and marketing for the five resorts, which comprise 1455 rooms located on the famed Northern Coast of Jamaica. The new strategy focuses on lowering customer acquisition costs, enhancing customer engagement and increasing customer loyalty.
The transaction also facilitated the diversification of cash flows for both parties. Sagicor exchanged a portion of its investment in Jamaica for shares in Playa's more diversified portfolio. Playa increased its family of globally recognized US brand partnerships while also growing its presence in Jamaica and capitalizing on the potential for operational synergies.
As part of the transaction, Playa welcomed Hilton into its family of brands and added two of Sagicor's seasoned business leaders to its board of directors.
"We're thankful for the ongoing support of Sagicor's senior executives, Richard Byles and Christopher Zacca and for their belief in Playa's vision. Their intimate knowledge of the portfolio and the Jamaican tourism industry have been invaluable. The transaction played a pivotal role in Playa's growth and we're grateful to have them as partners as we continue to expand our presence within the Caribbean," said Bruce Wardinski, Playa's Chairman and Chief Executive Officer.
"We're honored to receive this highly coveted award," said Fernando Mulet, Playa's Executive Vice President and Chief Development Officer. This off-market transaction allowed us to show the value of partnering with Playa. Not only did we expand our footprint in Jamaica by 17 percent through this business combination but we also secured a partner who benefits from diversification and our existing yet scalable operational platform in the region."
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