Tue Jan 07 14:40:00 UTC 2025: ## Playa Hotels Sells Jamaican Resort for $28.5 Million Amidst Tourism Downturn
**Montego Bay, Jamaica** – Playa Hotels & Resorts NV announced the sale of its Jewel Paradise Cove Beach Resort & Spa in Runaway Bay for US$28.5 million (approximately J$4.41 billion). The sale, to an undisclosed third party, is expected to close before the end of March 2025. This marks Playa’s third Jamaican resort sale in five years, following the sale of two other Jewel-branded properties to Sandals Resorts International.
The 225-room adult-only resort, which opened in 2013, was part of a larger portfolio acquired from Sagicor in 2018. This acquisition significantly expanded Playa’s Jamaican holdings, but the recent sale reduces its Jamaican room count from 1,428 to 1,203 across four remaining resorts. The sale will also lead to further write-downs of goodwill associated with the original Sagicor acquisition.
The sale comes amidst a challenging year for Playa’s Jamaican operations. Revenue for owned resorts in Jamaica dropped 14 percent to US$147.03 million in the first nine months of 2024, due in part to a US State Department travel advisory and Hurricane Beryl. Playa estimates the advisory cost the company US$10 million annually.
Despite these challenges, Playa recently sold other properties in the Dominican Republic, generating significant gains. The company is also currently in strategic discussions with Hyatt Hotels Corporation, which could potentially lead to an acquisition. Playa’s full-year results are expected at the end of February 2025.
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