Latest news with #TortugaResorts
Yahoo
01-07-2025
- Business
- Yahoo
Raymond James bumps Hyatt rating as $2 bln resort sale eases balance sheet worries
-- Raymond James on Tuesday upgraded Hyatt Hotels Corp to Strong buy and lifted its price target to $165, saying a $2 billion deal to offload recently acquired Playa Hotels & Resorts real‑estate assets removes a 'significant overhang' on the stock. Hyatt shares were up about 5% Tuesday at $146 in trading. RJ said the agreement to sell all 15 Playa resorts to Tortuga Resorts, a joint venture between KSL Capital Partners and Mexico's Rodina, came sooner than expected, covered the full portfolio and accelerates Hyatt's target of raising $2 billion from asset sales by 2027. The deal values the properties at roughly eight times forecast 2024 earnings before interest, tax, depreciation and amortisation and is due to close before year‑end 2025. Raymond James wrote that the transaction 'removes a significant overhang on the stock' and praised management's execution despite macro‑economic uncertainty. It called investors' muted initial reaction 'a bit of a head‑scratcher,' arguing progress on disposals was more important than the sale multiple. The broker noted Hyatt now trades about 2.5 EBITDA turns below Marriott International (NASDAQ:MAR.O) and five turns below Hilton Worldwide (NYSE:HLT) even though more than 90% of Hyatt's earnings are expected to come from fee‑based, asset‑light operations by 2027. Hyatt has lagged Marriott by nine percentage points and Hilton by 19 points so far this year, it added. Following the divestiture, Hyatt's net purchase price for Playa's management contracts falls to roughly $555 million, or about nine times projected 2026 EBITDA, with a potential $143 million earn‑out tied to performance. The company will keep $200 million of preferred equity in the venture and retain 50‑year management agreements on 13 of the resorts, preserving fee income while lightening its balance sheet. Hyatt bought Playa for $2.6 billion only two weeks ago to expand in the fast‑growing all‑inclusive segment. The swift flip of the bricks‑and‑mortar assets 'underscores management's commitment to an asset‑light strategy,' Raymond James said. Related articles Raymond James bumps Hyatt rating as $2 bln resort sale eases balance sheet worries Nuclear microreactor stocks fall after DOE selects Westinghouse, Radiant for tests Citi sees upside for Trade Desk into Q2 results, adds on a catalyst watch Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Travel Weekly
01-07-2025
- Business
- Travel Weekly
Hyatt to sell all its Playa real estate to an investment joint venture
Hyatt Hotels Corp. has agreed to sell the entire real estate portfolio it acquired from Playa Hotels & Resorts for $2 billion to Tortuga Resorts, a joint venture between investment firms KSL Capital Partners and Rodina. The deal, which is expected to close before the end of the year, comprises 15 all-inclusive resort properties across Mexico, the Dominican Republic and Jamaica. Following the real estate sale, Hyatt will maintain operational control through 50-year management agreements for 13 of the 15 properties. Two properties will operate under separate arrangements. Hyatt said it could earn an additional $143 million if certain operating thresholds are met. Additionally, Hyatt reported that the transaction reduces its net purchase price for Playa's management business to approximately $555 million after asset sale proceeds. Hyatt's $2.6 billion acquisition of the Playa portfolio closed on June 17. The company began reflagging a portion of Playa's all-inclusives earlier this month.
Skift
30-06-2025
- Business
- Skift
Hyatt to Sell Playa's Real Estate Portfolio
The DJIA rose 276 points while the Nasdaq was up 96, the S&P 500 rose 32 points and the 10-year treasury yield was down .05 to 4.23% but lodging stocks were mostly lower. SOND continued its surge, up another 19% but SOHO is now down below $1 again, down -5%. Hyatt Hotels Corporation has entered into a definitive agreement to sell the entirety of Playa's owned real estate portfolio, acquired from Playa on June 17, 2025, for $2.0 billion to Tortuga Resorts, a joint venture between an affiliate of KSL Capital Partners, LLC and Rodina. Hyatt can achieve up to an additional $143 million earn-out if certain operating thresholds are met. The real estate transaction is expected to close before the end of 2025 and is subject to regulatory approval in Mexico and other customary closing conditions. The real estate portfolio includes 15 all-inclusive resort assets located across Mexico, the Dominican Republic, and Jamaica. Concurrent with the real estate sale, Hyatt and Tortuga will enter into 50-year management agreements for 13 of the 15 properties, with terms consistent with Hyatt's existing all-inclusive management fee structure, while the remaining two properties are under separate contractual arrangements. Hyatt will retain $200 million of preferred equity in connection with the real estate transaction. In connection with the transaction, BDT & MSD Partners are acting as lead financial advisor to Hyatt, with Berkadia serving as Hyatt's real estate advisor. Latham & Watkins LLP is Hyatt's legal advisor. Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Tortuga, and Simpson Thacher & Bartlett LLP is acting as Tortuga's legal advisor. Analysts were positive on this Hyatt/Playa property deal, although there seems to be confusion about what it means. Just a sample, but Truist said this deal gives Hyatt the potential accretion of $8 a share, while Barclays said it worked out to $4 to $5 NPV per share. We couldn't find any analysts who did not think this was positive, and for us, it showed there are still buyers out there for hotels and real estate. Hyatt is debuting its Hyatt Centric brand in Canada with its first property in Montreal. The Hyatt Centric Ville-Marie Montreal has 177 guestrooms, including 5 suites; a restaurant, terrace, and private dining room; a fitness space; 5,000 square feet of meeting and event space; and a rooftop pool, is opening this summer. The Hyatt Place at Mount Pleasant Towne Center, in Mount Pleasant, South Carolina, has changed hands for $17.9 million. The 92-room, six-story property is between the Belk department store and the Regal Cinemas movie theater. Its amenities include an indoor pool, outdoor patio with bar access, and dining. The shop-and-stay Hyatt was built under the ownership of OTV Towne Centre LLC. It was developed by Four17 Partners and is managed by Raines Hospitality. Public property records show the new owner is C.H. McEntire Real Estate LLC. AD1 Hospitality welcomed the 112-room TownePlace Suites Raleigh-Durham Airport/Morrisville to its growing managed portfolio. The TownePlace Suites by Marriott Venture Oxnard has opened in Oxnard, California. The 121-suite property is managed by DKN Hotels. The property features a fitness center, a sports court, an outdoor courtyard and Weber grills, an outdoor game area, guest laundry, a market, an outdoor pool, and 365 square feet of functional meeting space. Stonebridge has added The MC Hotel, Autograph Collection in Montclair, New Jersey, to its expanding portfolio. In tandem, Stout NYC Hospitality Group has been named the exclusive food and beverage operator for the property, marking its official expansion into New Jersey. The eight-story, 159-room lifestyle hotel, owned in partnership with CSP MC Partners LLC, boasts over 8,000 square feet of flexible meeting space. Stout NYC Hospitality Group now operates Alto Rooftop, the only rooftop in Montclair, and Allegory Restaurant & Bar. Both venues are set to undergo significant renovations and rebranding in collaboration with hotel ownership later this year, including the launch of a new coastal Mediterranean concept adjacent to the hotel. Alpharetta, Georgia's newest hotel, Fairfield Inn & Suites Alpharetta - Avalon Area, is now open. The property features 166 guestrooms, a fitness center, and free onsite parking. Hotel Bourre Bonne, Curio Collection by Hilton, is now open in the heart of downtown Louisville, Kentucky. Developed by Nick Campisano and the team at Zyyo, the hotel features 168 guestrooms, world-class dining, and a first-of-its-kind rooftop bar, pool, restaurant, and over 7,000 square feet of flexible meeting space, including two boardrooms and a ballroom. The property is managed by Driftwood Hospitality Management. voco The Shelby - Myrtle Beach officially opens today, marking the brand's first property in South Carolina. voco The Shelby features 241 guestrooms and suites, an all-day restaurant and bar, over 1,300 square feet of flexible event space, and a lazy river and pool that comprise The Shelby Beach Club. Kimpton Hotel Palomar Phoenix, located in the downtown dining and entertainment hub CityScape, began a renovation of all 242 guestrooms, including 27 suites. The $5.5 million project is expected to be completed by September. Rooms will be renovated floor by floor and the hotel will remain open during the summer. The hotel, its Blue Hound Kitchen & Cocktails restaurant, rooftop pool, and rooftop Eden Bar will be open during the renovation. The Sage Investment Group has purchased the Studio 6 hotel in Mountlake Terrace, Washington, closing a $12.1 million sale. Sage plans to convert the current three-level, 119-room property into 120 studio apartment units by next year, according to The Puget Sound Business Journal. SIG is preparing to break ground in the next six to eight months and expects the construction costs to be between $3.8 million and $4.5 million. Rentyl Resorts has been named the exclusive hospitality partner and property manager for the retail environment of Miami Worldcenter - a $6 billion, 27-acre mixed-use destination in the heart of downtown Miami. As part of this long-term collaboration, Rentyl Resorts will oversee retail property management and guest experience operations at Miami Worldcenter while integrating its full-service national hospitality platform across the project's residential, resort, and lifestyle offerings. Plamondon Hospitality Partners announced the acquisition of a critical parcel of land in downtown Frederick, Maryland, marking a transformative step forward in realizing the vision for their full-service hotel and conference center. The land was previously owned by the Randall family. While the full site plan includes restoration of the Trolley Building and repurposing of the Eagles Building, Plamondon's land purchase does not include those structures, both of which are owned and managed by the Randall family. Once a trolley station, the building at 200 E Patrick Street is being redeveloped as a mixed-use commercial space, with completion expected in 2026. Meanwhile, the former home of the Fraternal Order of the Eagles, will become The Banyan, a new restaurant, event venue, and rooftop bar. The newly acquired land surrounding these sites will house the hotel and conference center footprint, making them integral to the broader redevelopment vision. The Breakwater Inn, in Kennebunkport, Maine, will reopen on July 1, 2025, following a complete renovation of its harbor-side guestrooms and the debut of a brand-new restaurant and bars. The renovation has refreshed each guestroom in the 15-unit Harbor Building. The original Inn Building, featuring 20 waterfront guestrooms, most with private decks, has also been refreshed. The property offers versatile indoor and outdoor settings with event rooms, buyout options, multiple bars, and tented setups. VIP Hospitality Operations announced the Sylvia Beach Hotel, located in Newport, Oregon, will reopen the hotel next week as The Hotel Sylvia. The remodeled, rebranded, and spanking new 112-year-old oceanfront, four-story hotel features a new Café Sylvia and, keeping with its literary theme, mini-libraries throughout the hotel, including in the new lobby lounge, in a new nook downstairs, and a reading area in the attic, plus bookshelves in each of the guestrooms. The 9 Group has pitched new plans for a 17-story hotel in the Gulch neighborhood of Nashville, Tennessee. The company is leading the development of the hotel, which will offer 186 hotel rooms, ground-level restaurant and retail space, and an underground parking garage, according to documents submitted to the Metropolitan Development and Housing Agency's Design Review Committee. No hotel brand was indicated in the documents. Valor Hospitality Partners announced its official expansion into the Caribbean market through a strategic partnership with Cove Bay Developments. The collaboration marks Valor's first Caribbean venture and includes the management of Plymouth Peninsula Tobago, a flagship luxury destination set to open on Tobago's northern coast in 2027. Designed and developed by Cove Bay Developments, Plymouth Peninsula Tobago will feature a collection of luxury apartments available for purchase with managed rental opportunities for owners, alongside a range of immersive hospitality offerings. Valor's food and beverage arm, SAVOR, will curate destination-worthy dining concepts, including signature restaurants and a beach club. Wellness experiences, curated guest service, and thoughtful programming rooted in Trinidad and Tobago's cultural identity will round out the development's offerings. Europe Highlights Just a few years ago, Goldman Sachs had ambitions to create a hotel brand in Greece that could one day expand to spots around the Mediterranean. The company bought three seaside resorts in northern Greece in 2022, with plans to spruce them up and start welcoming guests as soon as this year. This spring, Goldman abruptly sold the three hotels, barely breaking even on the roughly €100 million it had invested in the project, according to people familiar with the matter. It also pulled the plug on its plans for a hotel brand in the region. The firm sold the hotels to Sani/Ikos Group, a privately held company. The new owner of the hotels announced a more than 400 million euro investment in the project. The properties will feature nearly 750 rooms, multiple pools, more than 30 restaurants and bars, theaters, and spas. The hotels are scheduled to open in 2029.
Yahoo
30-06-2025
- Business
- Yahoo
Hyatt Hotels to Offload Playa's Resort Portfolio to Tortuga Resorts in $2 Billion Deal
Hyatt Hotels (H) agreed to sell Playa Hotels & Resorts' real estate portfolio to Tortuga Resorts for Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
30-06-2025
- Business
- CTV News
Hyatt to sell Playa's real estate portfolio for US$2 billion
Hyatt Hotels said on Monday it has agreed to sell the real estate portfolio owned by Playa Hotels to Tortuga Resorts for US$2 billion, as the U.S. hospitality chain seeks to strengthen its asset-light business. Hyatt had entered into a deal to buy Playa, 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 portfolio, which includes 15 resort assets, Hyatt's net purchase price for the remaining of Playa's business is about $555 million, the company said. The real estate deal, subject to regulatory approval in Mexico, is expected to close before the end of 2025. 'The rapid sale of the real estate from the transaction is likely to be taken positively by investors,' said Richard Clarke, analyst at Bernstein. Hyatt, in a filing with the U.S. securities regulator, disclosed that its purchase of Playa was completed on June 17 and it entered into the deal with Tortuga on June 29. Hyatt and Tortuga, concurrent with the portfolio sale, will enter into 50-year agreements for certain properties under which Hyatt will continue managing the resorts. Thirteen of the 15 properties follow terms consistent with Hyatt's existing management fee structure, while the remaining two properties fall under separate deals. Hyatt operates on an asset-light model, where the hotel chain prefers not to own physical properties but to manage or franchise them. '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 CEO Mark Hoplamazian said in a statement. Hyatt said it expects its asset-light earnings mix could reach at least 90 per cent by 2027. It expects to use the proceeds from the latest deal to repay the loan used to fund a portion of the Playa acquisition. (Reporting by Aishwarya Jain in Bengaluru; Editing by Shailesh Kuber)
