Playa Hotels & Resorts N.V. Completes the Sale of Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark

Rhea-AI Summary

Playa Hotels & Resorts N.V. (NASDAQ: PLYA) announced the successful sale of Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark for $60 million in cash. This transaction enhanced the company's liquidity by approximately $58.7 million after closing costs. The proceeds will be used for general business purposes, potentially including debt reduction. Playa operates 21 all-inclusive resorts in prime locations across Mexico, Jamaica, and the Dominican Republic, aiming to strengthen its financial position amidst ongoing uncertainties.

Positive

• Sale of two resorts for $60 million improves liquidity by $58.7 million.
• Proceeds may reduce outstanding debt, enhancing financial stability.

Negative

• The current COVID-19 pandemic poses risks to financial condition and operating results.

FAIRFAX, Va., May 22, 2020 (GLOBE NEWSWIRE) -- Playa Hotels & Resorts N.V. (NASDAQ: PLYA) (the “Company”) today announced that it closed on the sale of the Jewel Dunn’s River Beach Resort & Spa and the Jewel Runaway Bay Beach Resort & Waterpark for a total consideration of $60 million in cash.

The transaction increased the Company’s liquidity by approximately $58.7 million, reflecting the $60 million consideration net of customary closing costs.

Proceeds from the sale of these resorts will be utilized for general business purposes which may include reducing the Company’s outstanding debt.

About Playa Hotels & Resorts N.V.
Playa Hotels & Resorts N.V. (“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 (8,172 rooms) located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancun, Hyatt Ziva Cancun, Panama Jack Resorts Cancun, Panama Jack Resorts Playa del Carmen, Hilton Playa del Carmen, Hyatt Ziva Puerto Vallarta and Hyatt Ziva Los Cabos. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay and Jewel Paradise Cove Beach Resort & Spa. In the Dominican Republic, Playa owns and manages the Hilton La Romana, Hyatt Ziva Cap Cana and Hyatt Zilara Cap Cana. Playa also owns four resorts in Mexico and the Dominican Republic that are managed by a third party and Playa manages the Sanctuary Cap Cana, in the Dominican Republic.  

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 factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including the risks described under the section entitled “Risk Factors” in Playa’s Annual Report on Form 10-K, filed with the SEC on February 27, 2020 and Form 8-K filed April 2, 2020, 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.  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, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the adverse effects of the current COVID-19 pandemic on the financial condition, operating results and cash flows of Playa, the airlines that service the locations where Playa owns resorts, the short and longer-term demand for travel, the global economy and the local economies where Playa owns its resorts, and the financial markets.  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).

Contact:
Playa Hotels & Resorts N.V.
Pedram Saif, VP, IR & Strategy
571-529-6014
psaif@playaresorts.com

For additional information visit investors.playaresorts.com.

FAQ

What is the recent sale announced by Playa Hotels & Resorts?

Playa Hotels & Resorts announced the sale of Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark for $60 million.

How much liquidity did Playa gain from the recent transaction?

The sale increased Playa's liquidity by approximately $58.7 million after accounting for closing costs.

What will the proceeds from the sale be used for?

The proceeds will be utilized for general business purposes, which may include reducing outstanding debt.

What challenges does Playa Hotels & Resorts face currently?

Playa faces challenges due to the COVID-19 pandemic, which affects its financial condition and operating results.

What kind of resorts does Playa Hotels & Resorts own?

Playa owns and operates all-inclusive resorts in popular vacation destinations in Mexico, Jamaica, and the Dominican Republic.