Playa Hotels & Resorts Completes Previously Announced Business Combination With Sagicor Group Jamaica
Playa Hotels & Resorts N.V. (NASDAQ: PLYA, “Playa”), announced that it had completed a business combination with Sagicor Group
Jamaica Limited (“Sagicor”) whereby Sagicor contributed 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 including the 495-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 Montego Bay. The existing assets were previously managed by
an external third-party operator but Playa assumed management of the
assets on the closing of the transaction.
Consideration for such assets was comprised of 20 million shares of Playa's common stock and $100 million in cash, subject to certain post-closing adjustments. In addition, two individuals nominated by Sagicor and recently elected by Playa's shareholders at Playa's annual meeting, joined Playa's Board of Directors upon the consummation of the transaction.
“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. We are excited to welcome our new Jamaican team members and Sagicor as a valuable new investor and partner,” said Bruce Wardinski, Chairman & CEO of Playa Hotels & Resorts.
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 elected 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. 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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