Virginia-based Playa Hotels & Resorts NV agreed to merge with Sagicor Group Jamaica Ltd. in a deal that will see it acquire a portfolio of five all-inclusive resorts and two adjacent developable land sites on Jamaica's north coast from the latter.
The Jamaican financial services provider will, in exchange, receive 20 million shares of Playa Hotels' common stock and $100 million in cash. Playa Hotels will nominate two Sagicor appointees, including Sagicor Chairman Richard Byles, for election to its board of directors.
The portfolio to be acquired by Playa Hotels comprises four externally managed resorts, namely 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, as well as an 88-room hotel tower and spa, two developable land sites with potential to accommodate up to 700 rooms and a hotel management contract for the Jewel Grande Palmyra.
Upon completion of the deal, Playa Hotels will internalize and self-manage the properties, according to a release.
The deal is expected to make Playa Hotels one of the largest resort owners and operators in Jamaica, where it already owns and operates the Hyatt Ziva and Hyatt Zilara Rose Hall.