USA – Hyatt Hotels has completed the sale of the 1,641-room Hyatt Regency Orlando and adjacent 45 acres of land to affiliates of RIDA Development and an Ares Management Real Estate fund.
The sale was made for approximately US$1.07 billion, while retaining a long-term management agreement under the Hyatt Regency brand.
In connection with the transaction, Hyatt retained US$265 million of non-controlling preferred equity and provided an additional US$50 million of seller financing for the adjacent 45-acre parcel.
The sale of Hyatt Regency Orlando is part of Hyatt’s capital allocation strategy to sell owned hotels and reinvest proceeds in asset-light platforms that accelerate growth, and exceeds Hyatt’s expanded US$2 billion asset-disposition commitment announced in 2021.
Over a three-year period, Hyatt has now realized US$2.6 billion of gross proceeds, net of acquisitions, at a 13.3x multiple.
Hyatt Regency Orlando, the fourth largest Hyatt hotel globally by room count, has 1,641 rooms with 315,000 square feet of event space.
The hotel, which has more than one million guests and attendees on average per year, is well-positioned in the market given its prime location near popular Orlando attractions and direct connection to the Orange County Convention Center, the second largest convention facility in the U.S.
RIDA and Ares have entered into a development agreement with Hyatt for a new Grand Hyatt hotel on the 45 acres of land adjacent to Hyatt Regency Orlando.
Upon the satisfaction of certain conditions, Hyatt and an affiliate of RIDA and Ares will enter into a long-term management agreement for the hotel.
“The sale of Hyatt Regency Orlando represents the largest single-asset sale in Hyatt history,” Hyatt President and CEO Mark Hoplamazian said in a statement.
“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.”
RIDA and Ares anticipate pursuing necessary approvals and other governmental support over the next several years for the planned Grand Hyatt Orlando, which is expected to have approximately 2,500 rooms and be developed in multiple phases.
The development of Grand Hyatt Orlando is positioned to create a combined total of more than 4,000 guestrooms across Hyatt Regency Orlando and Grand Hyatt Orlando at the Orange County Convention Center, further positioning Hyatt strategically in this thriving, high-demand market.
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