Hyatt Hotels Corp. announced last week that it will enter the all-inclusive resort segment by entering into a partnership with Playa Hotels & Resorts, created recently with the goal of owning, operating and developing all-inclusive resorts in Mexico and the Caribbean.
In exchange for a $325 million investment in Playa, Hyatt will receive a 20 percent ownership stake in the company, as well as convertible preferred stock. Playa, meanwhile, will open 13 resorts totaling approximately 5,800 guest rooms across Mexico, the Dominican Republic and Jamaica, entering into franchise agreements with Hyatt for six of those resorts, totaling approximately 2,800 guest rooms. The first two Hyatt-branded all-inclusive resorts — both in Mexico — will be introduced later this year following multimillion-dollar renovations of existing properties. Four additional Hyatt-branded resorts in Jamaica, Mexico and the Dominican Republic are expected to open in 2014 and 2015.
“The all-inclusive segment has grown rapidly over the past 20 years,” Stephen Haggerty, Hyatt’s global head of real estate and capital strategy, said in a statement. “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.”
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