Hyatt Hotels Corporation closes US$2 billion deal
The Hyatt Hotel Corporation has announced a review of its real estate strategy. The company has sold part of its Playa Hotels assets to Tortuga Resorts. The deal is worth US$2 billion.
Notably, these assets became part of Hyatt’s portfolio relatively recently. In February 2025, Hyatt acquired Playa for US$2.5 billion plus debt. Playa manages 24 elite resort complexes that offer all-inclusive vacations. Playa hotels are located in the Dominican Republic, Mexico, and Jamaica. Hyatt has now decided to sell 15 of its Mexican properties. The remaining Playa assets have an estimated value of approximately US$555 million.
According to Richard Clark of Bernstein, the quick sale is a positive signal for investors. Additionally, the proceeds will help Hyatt pay off some of the debt incurred to purchase Playa.
This approach is consistent with Hyatt’s business model:
1. The company traditionally adheres to a strategy of minimal asset ownership. In this case, Hyatt does not physically own the properties.
2. Hyatt prefers to manage properties or operate under a franchise rather than directly owning real estate.
3. Thanks to the sale of the hotels, the February deal has effectively transformed into a purchase with minimal assets. This increases Hyatt’s revenue from commissions and management services.
According to forecasts, about 90% of the company’s profits will come from so-called “light assets” by 2027.
About Hyatt Hotels & Resorts
Hyatt Hotels & Resorts is an international chain of luxury and business-class hotels, founded in 1957 in Chicago by the Pritzker brothers. The Pritzker family continues to play a key role in managing the business to this day. The chain currently includes approximately 1,350 all-inclusive hotels and resorts. These hotels and resorts are located in 69 countries around the world. Hyatt is present in virtually all regions, from North America to Asia.
It entered the international market in 1969 and has actively expanded its presence on all continents ever since. An important milestone in the company’s development was its acquisition of AmeriSuites in 2004. This expansion continued with deals involving Summerfield Suites in 2005 and Two Roads Hospitality in 2018. In 2021, Apple Leisure Group joined Hyatt. Later, Dream Hotel Group and Standard International became part of the business structure.
The chain’s brands fall into five categories:
– luxury;
– lifestyle;
– inclusive;
– classic;
– standard.
Each offers a range of unique services depending on customers’ needs and financial capabilities.
One of the most prominent representatives of the “luxury” category is the Alila Villas hotel in Bali. At the same time, Hyatt’s assets include options at different price points.