Hyatt Hotels (H.US) completed a $2 billion real estate sale and firmly promoted the asset weight reduction model

The Zhitong Finance App learned that Hyatt Hotels Group (H.US) announced that it has completed the transaction of selling its real estate asset portfolio previously acquired from Playa Hotels & Resorts N.V., to Tortuga Resorts at a price of about 2 billion US dollars. Additionally, Hyatt can earn up to $143 million in additional revenue if specific operating targets are met. As part of the deal, Hyatt retained its $200 million preferred stock interest in Tortuga. Hyatt and Tortuga have signed 50-year management agreements for 13 of the 14 hotels in the asset portfolio.

The sale's real estate portfolio includes 15 all-inclusive resorts in Mexico, the Dominican Republic, and Jamaica. As previously disclosed, Hyatt sold one of its hotels to another independent third-party buyer for $22 million on September 18. So far, Hyatt has sold its entire Playa real estate portfolio for a total price of $2 billion.

According to reports, the sale of the real estate asset portfolio highlights Hyatt's commitment to its asset-lightweight business model and creates value for shareholders. Going forward, the proceeds from the sale of the property will be used to repay deferred withdrawal term loans raised to partially acquire Playa assets. Hyatt anticipates that formally, its net leverage ratio will remain consistent with the threshold required to maintain its investment-grade credit rating.

It was also revealed that due to damage caused by Hurricane Melissa in October, seven Hyatt hotels in Jamaica are expected to close until the fourth quarter of 2026.

Hyatt Hotels Group's stock price has increased 4.2% cumulatively since this year. Wall Street analysts unanimously rated the stock as a “buy.”