Playa to sell two Jewel hotels for US$60 million
Photo of Jewel Runaway Bay Beach and Resort in St Ann.
Playa Hotels & Resorts announced over the weekend that it has entered into a binding agreement with a third party to sell the Jewel Dunn’s River Beach Resort & Spa and the Jewel Runaway Bay Beach Resort & Waterpark for a total consideration of US$60 million in cash.
The sale comes less than two years after the international report group acquired the properties in St Ann from Sagicor Group Jamaica.
Playa, a developer of all-inclusive resorts in Mexico and the Caribbean, owns and/or manages a total portfolio consisting of 23 resorts (8,690 rooms) located in Mexico, Jamaica, and the Dominican Republic.
In mid-year 2018 the resort group acquired the Hilton Rose Hall Resort & Spa, Jewel Dunn’s River Beach Resort & Spa, Jewel Grande Montego Bay, Jewel Runaway Bay Beach Resort & Waterpark and Jewel Paradise Cove Beach Resort & Spa from Sagicor.
Sagicor group received 20 million Playa shares and US$100 million in cash under the deal.
Commenting on the sale of the two Jewell properties, Bruce Wardinski, Chairman and CEO of Playa Hotels & Resorts, was quoted as saying, “We are extremely proud of the team and the performance of these two spectacular resorts and the ability to execute this sale during such unprecedented times is a testament to their hard work and the attractiveness of the Jamaican market.”
In Jamaica, Playa also owns and manages Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall.
He outlined that the sale of these two resorts “will enhance our liquidity at a superb cost of capital for our shareholders.”
“The company will continue to maintain a significant presence in Jamaica and we remain committed to being a leader in the Jamaican community as we move beyond this pandemic,” it was noted.
Wardinski said the sale of the two resorts is subject to customary closing conditions.
The company expects the transaction to close in the second quarter of 2020.