Playa Hotels & Resorts N.V. Completes the Sale of the Capri Hotel and Executes New Hotel Management Contract
Playa Hotels & Resorts N.V. (NASDAQ: PLYA) announced the sale of the Capri Hotel for $55 million. The transaction enhances liquidity by approximately $48.8 million, net of closing costs. Following the sale, the resort will be rebranded as the Hyatt Zilara Riviera Maya under a new franchise agreement with Hyatt Hotels. Proceeds will be used for general business purposes and to reduce outstanding debt. Playa operates a portfolio of 22 resorts across Mexico and the Caribbean, aiming to provide exceptional guest experiences.
- Increased liquidity by approximately $48.8 million from the sale.
- New franchise agreement with Hyatt Hotels to rebrand the resort, enhancing brand value.
- The sale allows for debt reduction, improving financial health.
- None.
FAIRFAX, Va., June 28, 2021 /PRNewswire/ -- Playa Hotels & Resorts N.V. (NASDAQ: PLYA) (the "Company") today announced that it has completed the sale of the Capri Hotel for a total consideration of
"We are incredibly thrilled to be adding the Hyatt Zilara Riviera Maya to our managed resort portfolio, alongside our other category-defining Hyatt All-Inclusive resorts," said Bruce Wardinski, Chairman and CEO of Playa Hotels & Resorts. "I am excited to watch this resort achieve its full potential following its repositioning and branding, driving value for our new partners, associates and shareholders."
The transaction increased the Company's liquidity by approximately
Proceeds from the sale of the resort will be utilized for general business purposes and reducing the Company's outstanding debt.
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 22 resorts (8,366 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 15 resorts (6,004 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 five 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 Hotels & Resorts N.V.
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