Playa Hotels Sells Jamaica Resort for $28.5 Million Amid Challenges

Playa Hotels & Resorts NV has announced the sale of the Jewel Paradise Cove Beach Resort & Spa in Runaway Bay, St. Ann, Jamaica, for $28.5 million. The 225-room adult-only resort, which opened in December 2013, is expected to be sold to a third party by the end of March 2025. This marks Playa’s third resort sale in Jamaica in five years, following the sale of Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark to Sandals Resorts International in 2023.

The sale comes amid challenges for Playa’s Jamaican portfolio, which saw a 14% decline in revenue to $147.03 million over the first nine months of 2024. Factors contributing to the downturn include a U.S. State Department travel advisory and the impact of Hurricane Beryl, which reduced average occupancy rates from 80.8% to 72.9%. Playa estimates the travel advisory alone cost the company $10 million in annualized earnings.

Playa acquired the Jewel Paradise Cove property in 2018 as part of a $308.53 million deal with Sagicor Real Estate X-Fund Limited and the Sagicor Sigma portfolio. However, the company has since written down $19.79 million in goodwill impairment losses related to its Jamaican properties, including $4.49 million tied to the Jewel Paradise Cove resort. The sale will further reduce Playa’s Jamaican portfolio to four resorts with 1,203 rooms.

The company has been divesting assets across the Caribbean, including the sale of Jewel Palm Beach in Punta Cana, Dominican Republic, for $65.3 million in 2024 and Jewel Punta Cana for $79.1 million in 2023. These moves coincide with ongoing strategic discussions between Playa and Hyatt Hotels Corporation, which could potentially lead to Hyatt acquiring Playa.

Playa’s Jamaican properties, including the Hilton Rose Hall Resort & Spa and Jewel Grande Montego Bay Resort & Spa, remain key assets. The company has invested $13 million in capital projects across its Jamaican resorts and holds $445.24 million in gross property, plant, and equipment in the country.