Playa Hotels & Resorts has announced the completion of their previously announced merger with Sagicor Group Jamaica Limited, adding five all-inclusive resorts to Playa's portfolio in Jamaica.
The additions include Hilton Rose Hall, Jewel Runaway Bay, Jewel Dunn's River and Jewel Paradise Cove as well as the hotel management contract for the Jewel Grande Montego Bay. It also includes an 88-room hotel tower and spa along with two adjacent, oceanfront sites for future development.
The existing assets were previously managed by a third-party, but Playa assumed management at closing.
"The closing of this transaction with Sagicor elevates Playa into a strategically dominant position in Jamaica, diversifies our resorts portfolio and will allow for several years of strong profit growth as we execute our rebranding, expansion and renovation projects," said Bruce Wardinski, Chairman & CEO of Playa Hotels & Resorts.
"We are excited to welcome our new Jamaican team members and Sagicor as a valuable new investor and partner."
Playa currently owns and operates the Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall in Jamaica, and this combination with Sagicor will make Playa one of the largest resort owners and operators in the country.
Sagicor's compensation in the arrangement is 20 million shares of Playa's common stock and $100 million in cash. In addition, two individuals nominated by Sagicor joined Playa's Board of Directors following a recent election by Playa's shareholders at Playa's annual meeting,
"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," said Richard Byles, Chairman of Sagicor, one of the two Sagicor appointees elected to Playa's board.
"Through this transaction, Playa will leverage Jamaica's hospitality assets of tropical climate, attractive beachfronts, culture, airlift, proximity to US markets, high stabilized occupancy levels versus other Caribbean destinations, and supportive government agencies."
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