Hyatt's $2 Billion Property Sale Will Slash Cost of Buying Playa

Skift

2 days ago

After selling these 15 resorts, Hyatt will once again look less like a real-estate company and more like a capital-light services business. It will be less likely to get clobbered during a downturn from volatile cash flows tied to depreciating assets.
Just two weeks after acquiring Playa Hotels & Resorts, Hyatt Hotels announced a deal to sell the real estate portfolio of the all-inclusive resort brand for $2 billion, retaining its asset-light strategy.
Hyatt said on Monday it plans to sell 15 resorts in Mexico and the Caribbean to Tortuga Resorts, a joint venture between private equity firm KSL Capital Partners and investment group Rodina.
Hyatt acquired Playa in a $2.6 billion transaction on June 17. After selling the real estate, Hyatt's net cost to become the manager of Playa's resorts will be about $555 million.
Hyatt will