Hyatt is planning to enter the all-inclusive resort market, following the signing of a new partnership with Playa Hotels & Resorts.
The US hotel company said it intends to invest a total of US$325 million in the new venture, including paying a US$100m for a 20% ownership stake in Playa and US$225m for Playa stock.
Playa’s portfolio includes 13 resorts with approximately 5,800 rooms across the Dominican Republic, Mexico and Jamaica. Following Hyatt’s investment, Playa will enter into franchise agreements with Hyatt for six of the 13 resorts, or approximately 2,800 rooms, which will then be renovated before being rebranded as Hyatt properties.
Playa will also acquire or develop new all-inclusive resorts under Hyatt’s brands, and well as operating Hyatt-branded all-inclusive resorts in five Latin American and Caribbean countries between now and 2018.
“The all-inclusive segment has grown rapidly over the past 20 years,” said Stephen Haggerty, Hyatt’s global head of real estate & capital strategy. “This transaction will position us to introduce Hyatt’s authentic hospitality to a new guest base, while offering great new resort options in sought-after destinations to our existing guests. Our agreement with Playa also provides us with a platform for future global growth in an attractive segment, and our investment is structured to generate strong returns through our common and preferred interests as well as recurring franchise fees.”
Hyatt’s first two all-inclusive resorts will open in Mexico later this year, following major renovations of existing properties. Four additional Hyatt-branded resorts will then be introduced to Jamaica, Mexico and the Dominican Republic in 2014 and 2015.
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