Wed | Jun 26, 2019

Sagicor closes $39B deal with Playa Hotels and Resorts

Published:Monday | June 4, 2018 | 6:26 AMAvia Collinder

Financial services conglomerate Sagicor Group Jamaica announced earlier today that it has closed the deal with NASDAQ-listed Playa Hotels & Resorts N.V., to combine their tourism assets.

Sagicor disclosed that having met all contractual requirements, the approximately J$39 billion transaction with Playa is now complete.

Arising from the deal, Sagicor Group is expected to benefit from an expanded presence in resort markets in Mexico, the Dominican Republic and Jamaica as well as being invested in a listed entity on the NASDAQ.

Playa owns and/or manages a total portfolio consisting of 20 resorts (7,769 rooms) located in Mexico, Jamaica and the Dominican Republic. In Jamaica, the resort group now owns and manages Hyatt Zilara Rose Hall and Hyatt Ziva Rose Hall, Hilton Resort & Spa Rose Hall, Jewel Dunn’s River Beach Resort, Jewel Grande Montego Bay, Jewel Runaway Bay Beach & Golf Resort and Jewel Paradise Cove Beach Resort.

Sagicor said that in keeping with the terms of the transaction, Jewel Resorts and Hilton Rose Hall Resort and Spa employees will be placed on new employment contracts with Playa effective June 1.

In a release announcing the close of the deal, Sagicor said a series of consultative meetings were held with Playa representatives prior to the redundancy exercise and that plans for the future were outlined to staff during the initial stages of the transition.

President and CEO of Sagicor Group Jamaica, Christopher Zacca said the combination of assets “will ultimately see tremendous expansion in Jamaica’s tourism industry. Playa is expected to invest over US$200 million to build 760 additional rooms in Jamaica over the next three years.”

Chairman of Sagicor Real Estate X Fund and Sagicor Group Jamaica, Richard Byles "welcome the closing of this significant deal with Playa" and used the opportunity "to pay tribute to the management team and staff that contributed to the growth of the Jewel and Hilton brands within the hospitality industry in Jamaica.”

Sagicor Group Jamaica offers products and services in the areas of banking, insurance, investments, real estate, asset management and retirement planning and operates in over 20 countries.

avia.collinder@gleanerjm.com