FAIRFAX, Va. - Playa Hotels & Resorts N.V. (NASDAQ: PLYA), a prominent operator of all-inclusive resorts, has entered into a definitive agreement to sell its Jewel Paradise Cove resort for $28.5 million in cash. The company announced the transaction today, with the sale expected to close in the first quarter of 2025, subject to standard closing conditions.
The Jewel Paradise Cove resort is part of Playa's extensive portfolio, which includes 24 resorts across prime beachfront locations in Mexico, Jamaica, and the Dominican Republic. The company, which generated nearly $950 million in revenue over the last twelve months and maintains a healthy current ratio of 2.97, operates under various brands such as Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, and others, leveraging its expertise in the all-inclusive resort sector to provide premium experiences to its guests.
Playa's decision to sell the resort comes with no assurance that the transaction will be completed as anticipated. The company has cautioned that the sale is contingent upon customary closing conditions being met. This move is part of Playa's strategic business operations, which involve managing and developing all-inclusive resorts in sought-after beachfront areas.
The company's press release includes forward-looking statements, which are based on current expectations and projections about future events. These statements carry inherent risks and uncertainties, and actual outcomes could differ materially. For deeper insights into Playa's financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports, which are available for over 1,400 US stocks. The company has advised that these forward-looking statements should not be relied upon as guarantees of future performance and has disclaimed any obligation to update them.
The information regarding the sale of the Jewel Paradise Cove resort is based on a press release statement from Playa Hotels & Resorts N.V.
In other recent news, Playa Hotels & Resorts reported robust third-quarter earnings, with notable performance in the Yucatan and Dominican Republic, and recovery in Jamaica. The company's owned resort EBITDA reached $36.6 million, despite a 36% decline due to Hurricane Barrel and construction disruptions. Playa Hotels & Resorts has been actively repurchasing shares, a move often seen as a sign of confidence in a company's financial health and future prospects.
Truist Securities maintained a Buy rating on Playa Hotels & Resorts, with an adjusted price target of $13.00. The firm noted recent public filings indicating that Playa is in exclusive talks with Hyatt Hotels (NYSE:H) about potential strategic options, including a potential sale of the company.
Oppenheimer also raised Playa's price target based on strong third-quarter earnings and recovery in Jamaica, while maintaining an Outperform rating on the stock. The company ended the third quarter with $211.1 million in cash and $1.08 billion in debt, and anticipates a stronger holiday period and recovery post-renovations, particularly in 2026.
These recent developments highlight the company's strategic decisions and commitment to long-term growth.
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