Nasdaq-listed Playa Hotels & Resorts N.V. on Monday (April 19) announced that it has entered into a binding agreement with a third party to sell the Capri Hotel for $55 million in cash, as part of a capital-light strategy.
Upon closing, Playa expects to execute a management contract and will operate the resort once it reopens after repositioning and renovation. The third party purchasing the hotel expects to simultaneously sign a franchise agreement with a globally recognized brand upon closing.
Playa 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.
The family friendly Hyatt Ziva Riviera Cancun will offer a variety of amenities including several globally inspired and locally authentic restaurants; multiple swimming pools; the Zen Spa inspired by pre-Hispanic Mayan culture with 12 indoor and eight outdoor treatment rooms; a fitness center with state-of-the-art amenities; and ocean views of the crystalline waters of the Caribbean Sea and the lagoon of Bahia Petempich.
Additionally, the property will offer more than 15,000 square feet of meeting and event space, ideal for weddings, anniversary celebrations and a variety of gatherings. The Hyatt Ziva Riviera Cancun debut will bring the total number of Hyatt Ziva resorts to six across Mexico and the Caribbean.
“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.”
Speaking on the developments, Fernando Mulet, EVP and Chief Development Officer, stated: “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. 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 Playa offers no assurances that this sale will be completed. The company expects the transaction to close in the second quarter of 2021.
Playa Hotels & Resorts N.V. 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.