While negotiating a big deal with Hyatt, Playa Hotels &
Resorts sells all-inclusive Jewel Paradise Cove Resort & Spa.
FAIRFAX, Virginia – Playa Hotels & Resorts has entered
into a binding agreement with an unnamed third party to sell the all-inclusive Jewel
Paradise Cove Resort & Spa in Jamaica for $28.5 million in cash.
Just over a week ago, Playa confirmed that it executed an
exclusivity agreement with Hyatt Hotels Corp. to negotiate strategic options,
which may include the acquisition of the company by Hyatt. The exclusivity
agreement will remain in place until February 3, 2025. A merger with Hyatt
reportedly would top the $1.2 billion market capitalization of Playa Hotels.
While having a short-term impact on revenue, this latest
disposition would improve Playa’s financial position, enhance shareholder value,
and allow it to focus on higher-performing assets.
Playa currently owns and/or managers some 24 resorts with
8,627 rooms with strength in resort markets such as Jamaica, Mexico and the
Dominican Republic. Eight are third-party management agreements, while the
other resorts are owned and managed by Playa.
In August, Playa agreed to sell the Jewel Palm Beach in
Punta Cana, Dominican Republic, to a third party for approximately $68 million
in cash.