Hyatt To Sell Playa’s Owned Real Estate Portfolio To Tortuga For $2B

Hyatt Hotels on Monday said it would sell Playa’s owned real estate portfolio for $2 billion to Tortuga Resorts.

Hyatt Hotels stock edged lower by 0.1% in Monday’s midday trade. Stocktwits data shows sentiment over the past week has been in the ‘bullish’ territory.

The Playa’s portfolio includes 15 all-inclusive resort assets located across Mexico, the Dominican Republic, and Jamaica. Hyatt said the company and Tortuga will enter into 50-year management agreements for 13 of the 15 properties, and the deal is expected to close before the end of 2025.

Hyatt will maintain management of the resorts and hold $200 million in preferred equity as part of the real estate deal. Following the transaction, the net purchase price Hyatt paid for Playa’s asset-light management business totals approximately $555 million.

Earlier in February, Hyatt announced that it would buy Playa Hotels & Resorts for about $2.6 billion, including debt, as part of its effort to expand its presence in Mexico and the Caribbean.

“The planned real estate sale to Tortuga transforms the acquisition of Playa Hotels & Resorts into a fully asset-light transaction and increases Hyatt’s fee-based earnings,” said Mark Hoplamazian, President and Chief Executive Officer.

In recent years, Hyatt has transitioned to an asset-light strategy by divesting owned properties and prioritizing management and franchise partnerships.

This enables Hyatt to expand its international footprint, enhance brand visibility, and increase revenue from fee-based sources.

Hyatt said once the deal is closed, it will use the proceeds to repay the delayed draw term loan used to fund a portion of the Playa acquisition.

Hyatt Hotels’ stock has declined over 11% year-to-date and more than 6% in the past 12 months.

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