Playa Hotels & Resorts N.V. Announces the Sale of the Capri Hotel and New Hotel Management Contracts
Playa Hotels & Resorts N.V. (NASDAQ: PLYA) announced the sale of the Capri Hotel for $55 million in cash, with plans for management post-renovation. The transaction is expected to close in the second quarter of 2021. Additionally, Playa signed a hotel management agreement for a 438-room luxury hotel in Riviera Maya, slated to open as the Hyatt Ziva Riviera Cancun in Q3 2021. This move aligns with Playa's strategy to expand its portfolio of branded all-inclusive resorts, enhancing its operational model without substantial capital expenditure.
- Sale of Capri Hotel for $55 million enhances liquidity.
- Management agreement for Hyatt Ziva Riviera Cancun expands branded portfolio.
- Operational model focuses on capital-light expansion.
- Transaction completion is uncertain due to customary closing conditions.
FAIRFAX, Va., April 19, 2021 /PRNewswire/ -- Playa Hotels & Resorts N.V. (NASDAQ: PLYA) (the "Company") today announced that it has entered into a binding agreement with a third party to sell the Capri Hotel for a total consideration of
The Company has also signed a hotel management agreement with the same third party for a 438-room luxury hotel in Riviera Maya, Mexico that is currently under renovation and expected to open during the third quarter of 2021 as the Hyatt Ziva Riviera Cancun.
"These management contracts are a capital-light step forward on our path to operating a fully branded portfolio of all-inclusive resorts," said Bruce Wardinski, Chairman and CEO of Playa Hotels & Resorts. "We are looking forward to working with our new owner partner and once the resorts reopen we will focus on what we do best: deliver unparalleled Service from the Heart."
"We are extremely pleased to announce this strategic transaction, which is a milestone confirming hotel owners' interest in proven, branded all-inclusive resorts managed by Playa," said Fernando Mulet, EVP and Chief Development Officer. "These resorts are high quality additions to our exceptional portfolio of managed resorts that will further leverage our existing infrastructure and expertise."
The sale of the Capri Hotel is subject to customary closing conditions, and the Company offers no assurances that this sale will be completed. The Company expects the transaction to close in the second quarter of 2021.
About Playa Hotels & Resorts N.V.
Playa Hotels & Resorts N.V. (NASDAQ: PLYA, "Playa") is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. Playa owns and/or manages a total portfolio consisting of 21 resorts (7,927 rooms) located in Mexico, Jamaica, and the Dominican Republic. Playa leverages years of all-inclusive resort operating expertise and relationships with globally recognized hospitality brands to provide a best in class experience and exceptional value to our guests, while building a direct relationship to improve customer acquisition cost and drive repeat business. Playa owns and manages 17 resorts (6,295 rooms) located throughout Mexico, Jamaica and the Dominican Republic. Playa also owns two resorts in the Dominican Republic that are managed by a third party and manages two resorts on behalf of third-party owners. For more information, please visit www.playaresorts.com.
Forward-Looking Statements
This press release contains ''forward-looking statements,'' as defined by federal securities laws. Forward-looking statements reflect Playa's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Playa's Annual Report on Form 10-K, filed with the SEC on March 4, 2021, as such factors may be updated from time to time in Playa's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Playa's filings with the SEC. Currently, some of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements are the adverse effects of the current COVID-19 pandemic on our financial condition, liquidity, results of operations and prospects, reductions in service by the airlines that service the locations where we own resorts, the short and longer-term demand for travel, the global economy and the local economies where we own resorts, and the financial markets. The extent to which the COVID-19 pandemic will continue to impact us and consumer behavior will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, continuing resurgences of the pandemic, government actions taken to contain the pandemic or mitigate its impact, the speed, effectiveness and distribution of vaccines and treatment therapies, and the direct and indirect economic effects of the pandemic and containment measures, including the magnitude of its impact on unemployment rates and consumer discretionary spending, among others. While forward-looking statements reflect Playa's good faith beliefs, they are not guarantees of future performance. Playa disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Playa (or to third parties making the forward-looking statements).
For additional information visit investors.playaresorts.com.
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SOURCE Playa Management USA, LLC
FAQ
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What new hotel is Playa managing in Riviera Maya?
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