Playa Hotels & Resorts announced it has entered into a binding agreement to sell the Jewel Paradise Cove resort in Jamaica for $28.5 million in cash. In a statement, the owner, operator and developer of all-inclusive resorts said it would be selling the all-inclusive resort to a third-party.
The sale is expected to close in the first quarter of 2025, Playa said. The resort’s sale is subject to customary conditions.
The adult-only resort opened in December 2013 under its current brand and is owned by Paradise Cove Resort Lucia Ltd., according to a report by Jamaica Observer. The sale marks Playa’s third resort in Jamaica in five years, following the sale of Jewel Dunn’s River Beach Resort & Spa and the Jewel Runaway Bay Beach Resort & Waterpark to Sandals Resorts International, the report added. The Jewel Dunn’s River property was rebranded to the Sandals Dunn’s River and reopened in May 2023.
Offering a Caribbean-inspired environment, the Jewel Paradise Cove Resort offers rooms across multiple types, ranging from premier, pool view, ocean view, oceanfront rooms and butler service junior suites.
The announcement of the Jamaican resort’s sale comes within a few weeks of Hyatt announcing that it had executed an exclusivity agreement with Playa, under which Playa had agreed to negotiate exclusively with Hyatt regarding potential strategic alternatives, which may include Playa’s acquisition by Hyatt. The exclusivity agreement will remain in place until February 3.
Playa’s Jamaican portfolio shrunk in 2024, with owned resort revenue declining by 14% to $147.03 million over the nine months, the Jamaica Observer report said. Average occupancy also slipped from 80.8% to 72.9% due to the impact of the U.S. State Department’s travel advisory and Hurricane Beryl.
In September 2024, Playa sold the Jewel Palm Beach in Punta Cana, Dominican Republic to an unnamed buyer in a $68 million cash deal. In a statement, the company said it expected total net proceeds of $64 million from the transaction. In December 2023, Playa sold Jewel Punta Cana for $82 million and said it had entered into a long-term hotel management agreement with the unnamed new owner to manage the resort.
Playa currently owns and/or manages 24 resorts, totaling 8,627 rooms, across Mexico, Jamaica and the Dominican Republic under several brands, including Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Tapestry Collection by Hilton, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts and The Luxury Collection.
