by Donald Wood
Last updated: 10:30 AM ET, Tue February 27, 2018
Playa Hotels & Resorts announced Tuesday that it has signed a deal with Sagicor Group Jamaica Limited to add five all-inclusive resorts and two adjacent oceanfront developable land sites in Jamaica to its portfolio.
The new portfolio consists of four existing Jamaican resorts, including 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.
In addition, the deal between Playa and Sagicor also includes an 88-room hotel tower and spa, two developable land sites with a potential for up to 700 rooms and a hotel management contract for the Jewel Grande Palmyra.
Once the deal is complete, Playa will immediately internalize and self-manage the assets.
"Playa's development track record, management expertise, strong regional presence and deep customer relationships will contribute significantly to improving the Sagicor portfolio performance," Playa Hotels & Resorts CEO Bruce Wardinski said in a statement. "Most importantly, this transaction provides Playa with multi-year built-in growth opportunities, which we expect will drive outstanding financial returns."
In return for the expanded portfolio, Sagicor will receive $100 million in cash, 20 million shares of Playa's common stock and two appointees for election to the hotel company's Board of Directors.
While Playa already owns the Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall in Jamaica, the new additions to its portfolio will make the hotel company one of the largest resort owners and operators on the island.
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