Hyatt Hotels Sells Playa's Real Estate Portfolio for $2 Billion to Tortuga Resorts
Hyatt Hotels has entered into an agreement to sell the real estate portfolio of Playa Hotels to Tortuga Resorts for $2 billion, part of its strategy to strengthen its asset-light business model.
Hyatt HotelsPlaya HotelsTortuga ResortsMexicoJamaicaReal Estate NewsJul 01, 2025
Hyatt had initially entered into a deal to buy Playa Hotels for $2.6 billion, including debt, in February. Playa operates 24 high-end, all-inclusive resorts across Mexico, Jamaica, and the Dominican Republic. 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 is subject to regulatory approval in Mexico and is expected to close before the end of 2025. Hyatt and Tortuga will also enter into 50-year agreements for certain properties under which Hyatt will continue managing the resorts. Thirteen of the 15 properties will follow terms consistent with Hyatt's existing management fee structure, while the remaining two properties will fall under separate deals.
This transaction is seen as a positive move by investors. Richard Clarke, an analyst at Bernstein, commented, 'The rapid sale of the real estate from the transaction is likely to be taken positively by investors.' Hyatt CEO Mark Hoplamazian stated, '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 expects its asset-light earnings mix to reach at least 90% by 2027. The proceeds from this latest deal will be used to repay the loan that funded a portion of the Playa acquisition. This strategic move underscores Hyatt's commitment to enhancing its financial flexibility and focusing on its core strengths in management and franchising.
Frequently Asked Questions
What is the total value of the deal between Hyatt and Tortuga Resorts?
The total value of the deal between Hyatt and Tortuga Resorts for the sale of Playa's real estate portfolio is $2 billion.
How many resorts does Playa operate, and where are they located?
Playa operates 24 high-end, all-inclusive resorts across Mexico, Jamaica, and the Dominican Republic.
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 after the real estate sale is approximately $555 million.
What is Hyatt's asset-light business model?
Hyatt's asset-light business model focuses on not owning physical properties but managing or franchising them, which allows for greater financial flexibility and focus on core strengths.
When is the real estate deal expected to close, and what regulatory approvals are needed?
The real estate deal is expected to close before the end of 2025 and is subject to regulatory approval in Mexico.
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