Playa Hotels & Resorts has announced that it has completed a “business combination” with Sagicor Group Jamaica Limited, whereby Sagicor contributed to Playa a portfolio of five all-inclusive resorts and two adjacent oceanfront developable land sites located on the 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,” said Bruce Wardinski, chairman and CEO of Playa Hotels & Resorts, in a written release.
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.