Hyatt Hotels Corporation (NYSE:H) has announced the completion of the sale of the 1,641-room Hyatt Regency Orlando and adjacent 45 acres of land for approximately $1.07 billion. The sale is part of Hyatt's capital allocation strategy to sell owned hotels and reinvest proceeds in asset-light platforms that accelerate growth. The sale exceeds Hyatt's expanded $2 billion asset-disposition commitment announced in 2021. Over a three-year period, Hyatt has now realized $2.6 billion of gross proceeds, net of acquisitions, at a 13.3x multiple.
The Hyatt Regency Orlando, the fourth largest Hyatt hotel globally by room count, has 315,000 square feet of flexible event space and welcomes more than one million guests and attendees on average per year. It is strategically positioned near popular Orlando attractions and the Orange County Convention Center, the second largest convention facility in the U.S.
Rida Development Corporation and an Ares Management real estate fund have acquired the property and intend to invest additional capital in a significant renovation plan that will focus on guestrooms and other amenities to further enhance the guest experience. Additionally, they have entered into a development agreement with Hyatt for a new Grand Hyatt hotel on the adjacent 45 acres of land. Upon the satisfaction of certain conditions, Hyatt and the affiliates of Rida and Ares will enter into a long-term management agreement for the hotel.
The planned Grand Hyatt Orlando is expected to have approximately 2,500 rooms and be developed in multiple phases, creating a combined total of more than 4,000 guestrooms across Hyatt Regency Orlando and Grand Hyatt Orlando at the Orange County Convention Center.
Hyatt's President and CEO, Mark S. Hoplamazian, stated, "The sale of Hyatt Regency Orlando represents the largest single-asset sale in Hyatt history. 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."
Hyatt's portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents as of June 30, 2024. The company's offering includes various brands such as Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, and others. Today the company's shares have moved 0.5% to a price of $143.1. For more information, read the company's full 8-K submission here.
