TPG Capital's Pace Holdings to merge with Playa Hotels & Resorts

Pace Holdings Corp, a special-purpose acquisition company formed by private equity firm TPG Capital, yesterday struck a deal to combine with Playa Hotels & Resorts BV and create a publicly listed company with an enterprise value of around $1.75 billion.
 
The transaction will provide $500 million of additional capital to Playa, allowing it to strength its balance sheet, pursue acquisitions, and enhance distribution, the companies said in a statement.

Playa owns and operates 14 resorts across 13 locations located on prime beachfront properties in the Dominican Republic, Jamaica, and Mexico.

The company's business model, which provides guests with the all-inclusive vacation experience year round, produces higher occupancy rates than competing traditional or seasonal resort structures.

In 2013, Playa entered into a strategic partnership with Hyatt to create two all-inclusive brands under the Hyatt name, Hyatt Ziva and Hyatt Zilara, of which Playa is the sole franchisee operating six Hyatt resorts across Mexico and Jamaica.