Hyatt Hotels completes the $2bn sale of its Playa Hotels & Resorts real estate portfolio to Tortuga Resorts, including 15 all-inclusive properties in the Dominican Republic, Jamaica, and Mexico. Hyatt retains $200m in preferred equity with potential additional earnings based on operational milestones.

Hyatt sold its Playa real estate portfolio to Tortuga, finalizing a 50-year management agreement for most properties. Proceeds will be used to repay a loan. Hyatt aims to maintain its investment-grade credit profile. Advisors included BDT & MSD Partners, Berkadia, and Latham & Watkins.

Goldman Sachs & Co and Simpson Thacher & Bartlett advised Tortuga on the transaction. Seven Hyatt properties in Jamaica remain closed after Hurricane Melissa damage. Hyatt Care Fund provided financial assistance to evacuated guests and staff.

Hyatt Inclusive Collection president Javier Águila lauds the transformative transaction with Tortuga, securing long-term management agreements for exceptional resorts. Cultural alignment and care between Playa and Hyatt were crucial. Hyatt recently opened its first branded hotel in Nha Trang, Vietnam.

Overall, Hyatt’s sale of its Playa portfolio to Tortuga Resorts represents a significant milestone for the company, reinforcing its commitment to excellence in the all-inclusive sector. The transaction was facilitated by strong cultural alignment and a shared dedication to providing memorable guest experiences.

Read more at Yahoo Finance: Hyatt finalises $2bn Playa portfolio transaction with Tortuga Resorts