Hospitality company Hilton has brokered an arrangement with Playa Hotels and Resorts.

The alliance marks further expansion of Hilton’s all-inclusive resort portfolio across the Caribbean and Latin America. By year-end, Hilton and Playa will rebrand Mexico-based Royal Playa del Carmen to Hilton Playa del Carmen, an all-inclusive resort.

The hospitality companies will also rebrand Dreams La Romana, Hilton La Romana, adding 1,269 new Hilton guest rooms to its existing global portfolio as part of a new strategic alliance between the two hotel companies. Playa will manage the operations.

By 2025, the hospitality companies have initial plans to open eight additional all-inclusive resorts.

“At Hilton, we are dedicated to offering our guests the type of world-class hospitality that matters most to them, in the destinations they want to visit,” President and CEO of Hilton, Christopher J Nassetta, said in a release from the company.

“Today we are pleased to begin our ambitious expansion journey with Playa Hotels & Resorts. Together we are responding to our shared guests, who are seeking attractive resort offerings. And as our all-inclusive portfolio grows, so too does our commitment to world-class hospitality in the Caribbean and Latin America,” he continued. The announcement was made during a reception of the soon-to-be Hilton Playa del Carmen all-inclusive resort.

Hilton currently operates a robust portfolio of nearly 140 world-class hotels and resorts in the Caribbean and Latin America, including nearly 60 properties in Mexico. Approximately 90 properties are in the region’s development pipeline, which includes the first Tapestry Collection by Hilton hotel in Peru, as well as the first Waldorf Astoria Hotels & Resorts property in Mexico.

Playa Hotels and Resorts, which earlier this year signed an agreement with Sagicor Group Jamaica, highlights increased brand and sourcing diversification, targeted stabilised cash-on-cash returns and the ability to leverage the expertise and cost of Playa’s existing loyal and regional management teams as some of the selling points from the deal.

“We look forward to capitalising on the power of the Hilton brand, the strength of our respective development teams, and Playa’s world-class all-inclusive management expertise, to accelerate the growth of Hilton’s all-inclusive resorts,” says Fernando Mulet, senior vice-president, head of development at Playa.

Sagicor, through its ownership of approximately 15 per cent or 20 million shares in Playa is also expected to benefit indirectly from the transaction. Sagicor now stands as the second largest shareholder in Playa Hotels and Resorts.

The deal saw Sagicor contribute five all-inclusive resorts and two adjacent oceanfront land sites in Jamaica to Playa’s growing portfolio.

The portfolio includes four existing resorts, including the 489-room Hilton Rose Hall, the 268-room Jewel Runaway Bay, the 250-room Jewel Dunn’s River, and the 225-room Jewel Paradise Cove. It also includes an 88-room hotel tower and spa, two land sites with a potential density of up to 700 rooms, and a hotel management contract for the Jewel Grande Palmyra.