by Donald Wood
Last updated: 10:59 AM ET, Tue June 8, 2021
Hyatt Hotels Corporation announced an increase to its 2021 net rooms growth outlook and the completion of two transactions as part of its ongoing capital strategy.
A Hyatt affiliate and Service Properties Trust (SVC) reached an agreement last week on 22 Hyatt Place hotels in the United States. The deal calls for the hotel company to manage 17 of the 22 properties for a 10-year term, increasing Hyatt's net rooms growth outlook for 2021 to approximately six percent, up from the prior expectation of greater than five percent.
Another Hyatt affiliate acquired the 59-room Ventana Big Sur, an Alila Resort, located in Big Sur, California, for approximately $148 million. The resort also includes 63 distinctive camping areas and 15 tent cabins and is one of three Alila resorts operating in California.
On June 4, a Hyatt affiliate sold the 490-room Hyatt Regency Lost Pines Resort and Spa near Austin, Texas, for approximately $275 million. The new owner anticipates enhancing and expanding this unique resort destination located on 405 acres along the banks of the Colorado River.
Hyatt remains on track to realize net proceeds from the sale of real estate of around $1.5 billion by March 2022 as part of its capital strategy announced in March 2019. To date, the company has realized $1.1 billion in net proceeds while continuing to expand its management and franchising business.
In addition to reducing the earnings from owned and leased hotels, Hyatt has expanded its managed and franchised property base by approximately 150 hotels (18 percent) from March 2019 to May 2021.
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