by Donald Wood
Last updated: 9:00 AM ET, Mon August 19, 2024
Hyatt Hotels Corporation announced that a company affiliate has
completed the sale of the 1,641-room Hyatt Regency Orlando and adjacent 45
acres of land to affiliates for approximately $1.07 billion.
Hyatt will retain a long-term management agreement under the
Hyatt Regency brand, keep $265 million of non-controlling preferred equity, and
provide an additional $50 million of seller financing for the adjacent 45-acre
parcel.
The sale of Hyatt Regency Orlando is part of Hyatt’s capital
allocation strategy to sell owned hotels and reinvest proceeds in asset-light
platforms that accelerate growth. The deal exceeds the company’s expanded $2
billion asset-disposition commitment announced in 2021.
Over the last three years, Hyatt has realized $2.6 billion
of gross proceeds.
“The sale of Hyatt Regency Orlando represents the largest
single-asset sale in Hyatt history,” Hyatt President and Chief Executive Officer
Mark S. Hoplamazian said.
“We are thrilled to be working with RIDA and Ares on this
transaction, and in collaboration with these world-class developers, we will
continue driving the success of Hyatt Regency Orlando and thoughtfully expand
our brand footprint in the most-visited destination in the U.S. with a new
Grand Hyatt hotel,” Hoplamazian continued.
Hyatt Regency Orlando, the fourth largest Hyatt hotel
globally by room count, has 1,641 rooms with 315,000 square feet of flexible
event space. The property welcomes more than one million guests and attendees
annually.
In addition, RIDA and Ares have entered into a development
agreement with Hyatt for a new Grand Hyatt hotel on the 45 acres of land
adjacent to Hyatt Regency Orlando. Upon the satisfaction of conditions, Hyatt
and an affiliate of RIDA and Ares will enter into a long-term management
agreement for the hotel.
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