A blank-check company backed by private equity firm TPG, Pace Holdings Corp (PACEU.O), is buying resort owner Playa Hotels & Resorts BV, creating a publicly listed firm with an enterprise value of about $1.75 billion, the companies said.
Playa owns and operates 13 resorts in Mexico, the Dominican Republic and Jamaica, under brands including The Royal and Gran. The company also operates six Hyatt Hotels (H.N) resorts in Mexico and Jamaica.
The combined company will retain the Playa name and will continue to be led by Playa Chief Executive Bruce Wardinski.
The deal, expected to close in the first quarter of 2017, will provide $500 million of capital to Playa, allowing it to strength its balance sheet, pursue acquisitions, and enhance distribution, the companies said.