Hyatt Hotels Seals $2 Billion Real Estate Deal with Tortuga Resorts
Hyatt Hotels has agreed to sell the real estate portfolio of Playa Hotels to Tortuga Resorts for $2 billion, marking a significant step in Hyatt's asset-light business strategy.
Hyatt HotelsTortuga ResortsReal EstateAssetlight ModelPlaya HotelsReal Estate NewsJun 30, 2025
Hyatt had previously entered into a deal to acquire Playa Hotels, which operates 24 high-end, all-inclusive resorts across Mexico, Jamaica, and the Dominican Republic, for $2.6 billion, including debt, in February. Following the sale of the real estate portfolio, which includes 15 resort assets, Hyatt's net purchase price for the remaining part of Playa's business is approximately $555 million.
The real estate deal, subject to regulatory approval in Mexico, is expected to close before the end of 2025. Analyst Richard Clarke from Bernstein commented, 'The rapid sale of the real estate from the transaction is likely to be taken positively by investors.'
In a filing with the US securities regulator, Hyatt disclosed that the acquisition of Playa was completed on June 17, and the deal with Tortuga was entered into on June 29. Hyatt and Tortuga will also enter into 50-year management agreements for certain properties, ensuring that Hyatt will continue to manage the resorts.
Thirteen of the 15 properties will follow terms consistent with Hyatt's existing management fee structure, while the remaining two properties will operate under separate deals. Hyatt operates on an asset-light model, which means the hotel chain prefers not to own physical properties but to manage or franchise them.
Mark Hoplamazian, Hyatt's CEO, stated in a press release, 'The planned real estate sale to Tortuga transforms the acquisition of Playa into a fully asset-light transaction and increases Hyatt's fee-based earnings.' Hyatt anticipates that its asset-light earnings mix could reach at least 90% by 2027.
The proceeds from the latest deal will be used to repay the loan that Hyatt used to fund a portion of the Playa acquisition. This strategic move underscores Hyatt's commitment to optimizing its financial structure and enhancing its operational efficiency.
Frequently Asked Questions
What is the total value of the real estate deal between Hyatt and Tortuga?
The total value of the real estate deal between Hyatt and Tortuga is $2 billion.
How many resorts are included in the real estate portfolio being sold?
The real estate portfolio being sold includes 15 resort assets.
What is Hyatt's net purchase price for the remaining part of Playa's business after the real estate sale?
Hyatt's net purchase price for the remaining part of Playa's business is approximately $555 million.
When is the real estate deal expected to close?
The real estate deal is expected to close before the end of 2025.
What is Hyatt's asset-light earnings mix target by 2027?
Hyatt's target for its asset-light earnings mix by 2027 is at least 90%.
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