Hyatt Hotels Corporation has announced a definitive agreement to sell the entirety of Playa Hotels & Resorts’ owned real estate portfolio to Tortuga Resorts (a joint venture formed by KSL Capital Partners and Rodina) for $2.0 billion.
The transaction, subject to regulatory approval in Mexico and other closing conditions, is expected to finalize by the end of 2025.
Recently acquired by Hyatt on June 17th, the portfolio includes 15 all-inclusive resorts across Mexico, the Dominican Republic, and Jamaica.
As part of the deal, Hyatt and Tortuga will enter into 50-year management agreements for 13 of the 15 properties that aligns with Hyatt’s existing all-inclusive fee structure. The remaining two properties will be operated under separate contractual arrangements.
Hyatt also stands to gain up to $143 million in earnout payments based on property performance, and will retain $200 million in preferred equity as part of the transaction.
“The planned real estate sale to Tortuga transforms the acquisition of Playa Hotels & Resorts into a fully asset-light transaction and increases Hyatt’s fee-based earnings,” says Mark Hoplamazian, president and CEO of Hyatt. “Hyatt has secured long-term, durable management agreements and the planned real estate sale demonstrates Hyatt’s commitment to its asset-light business model and ability to deliver value to shareholders that is accretive in the first full year.”
More from HD:
7 Tasting Rooms and Wineries Make a Visual Impact
Experimental Group Balances Innovation and Legacy
Artful Surprises Await at Hotel Saint Augustine
