Playa Hotels & Resorts S.L., has added a third resort in the Dominican Republic with the acquisition of the Ocean Bavaro Spa and Beach Resort in Punta Cana, the company announced today. The amount paid for the resort, the second acquisition in the Dominican Republic in two months, was not released.
The all-inclusive resort on Bavaro Beach has 738 rooms, including 93 suites; 3,121 square feet of meeting space and a business center; a European-style spa; a theater and new casino that was completed in June. It is located about 12 miles from the Punta Cana International Airport.
Playa Hotels & Resorts, formed in 2006 by Grupo Barcelo in Palma de Mallorca, Spain, said the property would be rebranded and operated as the Barcelo Dominican Beach Resort. On July 26, CPN reported that the company had acquired the 756-room, all-inclusive Sunscape Casa del Mar Resort in La Romana, Dominican Republic. A luxury resort and spa, it is located on the southern coast adjacent to the Casa de Campo resort and golf community. In 2006, the company also bought the Breezes Punta Cana Resort, Spa and Casino, which it is now operating as the Barcelo Premium Punta Cana Resort.
"The Dominican Republic is well-positioned as a growing vacation and meetings destination because of its pristine beaches, national ecological parks and its wide array of championship golf courses," Bruce Wardinski, chairman & CEO, said in a release today. "Playa Hotels & Resorts continues to see much upside potential in the Dominican Republic, with its array of resorts that appeal to a wide variety of North American and international travelers."
Wardiniski said the company was going to upgrade the quality of food and beverages to be in line with Barcelo’s upscale, all-inclusive programs. He added that physical improvements would be made to the resort and guestrooms but did not specify what type of renovations would be done or how much they would cost. The Barcelo Premium Punta Cana Resort is currently undergoing a multimillion facelift.
With today’s announcement, Playa Hotels & Resorts owns nine upscale, all-inclusive resorts in the Dominican Republic and Mexico. The company, a private equity fund with $1 billion in available capital, said it is in negotiations to acquire additional hotels and land for development of all-inclusive resorts in Costa Rica and Panama as well as in Mexico and the Dominican Republic. It expects to announce more closings before the end of the year. For its acquisitions, the company focuses on submarkets with high barriers to entry that appear to have moderate downside risk and potential for long-term appreciation. The company noted that development of new resorts would likely be limited to targeted markets including Cancun, Riviera Maya, Los Cabos and Nuevo Vallarta, Mexico; Costa Rica and Jamaica. |
