Supplier: Playa Hotels & Resorts
Playa Hotels & Resorts and Hilton have announced plans to leverage Playa Hotels & Resorts’ industry-leading, all-inclusive expertise with Hilton’s global portfolio of brands, and over 78 million participating members in Hilton Honors, Hilton’s award-winning loyalty program, to accelerate the growth of Hilton’s all-inclusive resorts.
This alliance will empower Playa to reach more guests, on more occasions, and in more geographies, than ever before. As part of the alliance, by the end of 2018, two Playa resorts, The Royal Playa del Carmen, and Dreams La Romana, will be converted to Hilton all-inclusive resorts, with the potential for the conversion and management of eight additional resorts by 2025. The converted properties will allow guests to earn and redeem Points through Hilton Honors.
Key strategic positives for Playa:
• Increased brand and sourcing diversification: delivering the best products and service to more guests, more often, in more locations
• The ability to leverage the expertise and cost of Playa’s existing loyal local and regional management teams
• As part of the transaction, Playa will commence management of the resort currently known as Dreams La Romana. The property will be rebranded as the Hilton La Romana, an All-inclusive Resort by year-end
• Targeted stabilized cash-on-cash returns of 25% – 31%, on capex of $39k – $42k per key for the two projects combined
Playa Resorts looks forward to capitalizing on the power of the Hilton brand, the strength of their respective development teams, and Playa’s world-class all-inclusive management expertise, to accelerate the growth of Hilton’s all-inclusive resorts.
For more information, visit playaresorts.com