Hyatt Hotels Corp. (H: Quote) announced that a wholly owned Hyatt subsidiary plans to enter the all-inclusive segment in partnership with Playa Hotels & Resorts B.V. Hyatt said it expects to invest a total of $325 million, consisting of $100 million for an approximate 20 percent ownership stake in Playa and $225 million for convertible preferred stock in Playa.
Playa's hotel portfolio will include 13 resorts totaling approximately 5,800 rooms across the Dominican Republic, Mexico and Jamaica.
In connection with the Hyatt investment, Playa will enter into franchise agreements with Hyatt for six of the 13 resorts, or approximately 2,800 rooms, which will operate under Hyatt brands following the completion of significant renovations.
Under an agreement with Hyatt, Playa will pursue the acquisition or development of new all-inclusive resort opportunities under Hyatt's brands and it will also have certain rights to operate Hyatt-branded all-inclusive resorts in five Latin American and Caribbean countries on an exclusive basis through 2018.
The first two Hyatt-branded all-inclusive resorts, located 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 be introduced in 2014 and 2015.
The Hyatt investment is expected to occur during the third quarter of 2013.
by RTT Staff Writer
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