Hyatt Moves to Fully Asset-Light Model with $2 Billion Playa Portfolio Deal and 50-Year Resort Contracts
(IN SHORT) Hyatt Hotels Corp. has agreed to sell the $2 billion real estate portfolio it acquired from Playa Hotels & Resorts to Tortuga Resorts, retaining up to $143 million in earnouts and $200 million in preferred equity. The deal covers 15 all-inclusive resorts in Mexico, the Dominican Republic, and Jamaica. Hyatt will then enter 50-year management agreements for 13 properties and maintain separate contracts for two others. Net of the sale proceeds, Hyatt’s investment in Playa’s asset-light operations is roughly $555 million. The company anticipates $60–65 million of stabilized Adjusted EBITDA by 2027, equating to an 8.5×–9.5× multiple. Proceeds will repay acquisition financing, preserving Hyatt’s investment-grade leverage. Advisors include BDT & MSD Partners, Berkadia, Latham & Watkins, Goldman Sachs, and Simpson Thacher & Bartlett.
(PRESS RELEASE) CHICAGO, 2025-Jun-30 — /Travel PR News/ — Hyatt Hotels Corporation (NYSE: H) has signed a definitive agreement to divest the entire real estate portfolio it acquired from Playa Hotels & Resorts on June 17, 2025. The $2.0 billion sale to Tortuga Resorts—a joint venture between an affiliate of KSL Capital Partners, LLC and Rodina—could yield up to an additional $143 million in earnout payments if specific performance targets are reached. Subject to Mexican regulatory approval and customary closing conditions, the transaction is slated to conclude by year’s end.
The portfolio comprises 15 all-inclusive resorts spanning Mexico, the Dominican Republic, and Jamaica. Simultaneous with the property sale, Hyatt and Tortuga will enter into 50-year management contracts for 13 of these resorts under Hyatt’s standard all-inclusive fee structure; the remaining two properties will continue under separate agreements. In addition, Hyatt will retain $200 million in preferred equity following the closing.
After applying the sale proceeds against its original outlay, Hyatt’s net cost for acquiring Playa’s asset-light management operations stands at approximately $555 million. The company forecasts stabilized Adjusted EBITDA of $60–65 million in 2027—factoring in contributions from Unlimited Vacation Club and ALG Vacations—implying a valuation multiple of 8.5×–9.5×, which could improve if earnout criteria are met.
“This planned real estate sale to Tortuga completes our transition to a fully asset-light acquisition of Playa Hotels & Resorts and enhances our fee-based revenue stream,” said Mark Hoplamazian, President and CEO of Hyatt. “Securing long-term management rights and monetizing the real estate underscores our dedication to an asset-light strategy and delivers accretive value for shareholders in the first full year post-close.”
Proceeds from the transaction will be used to repay the delayed-draw term loan originally deployed for the Playa acquisition, with Hyatt expecting pro forma net leverage to remain within investment-grade targets. A detailed supplemental presentation accompanies today’s Form 8-K, available under “Financials” on Hyatt’s Investor Relations website.
Hyatt’s advisors on the deal include BDT & MSD Partners (lead financial) and Berkadia (real estate), with legal counsel from Latham & Watkins LLP. Tortuga’s advisors are Goldman Sachs & Co. LLC (exclusive financial) and Simpson Thacher & Bartlett LLP (legal).
For further information:
Hyatt Media Contact:
Franziska Weber
franziska.weber@hyatt.com
Hyatt Investor Contacts:
Adam Rohman
adam.rohman@hyatt.com
Ryan Nuckols
ryan.nuckols@hyatt.com
Tortuga Media Contact:
Kate Thompson / Erik Carlson / Kate Kelley
Joele Frank, Wilkinson Brimmer Katcher
Tortuga-JF@JoeleFrank.com
SOURCE: Hyatt Corporation
