Hyatt Hotels Corporation (NYSE:H) completed the sale of the 1,641-room Hyatt Regency Orlando and adjacent 45 acres of land to affiliates of RIDA Development Corporation and an Ares Management Real Estate fund for approximately $1.07 billion.
The Chicago-headquartered Hyatt will retain a long-term management agreement for the property under the Hyatt Regency brand. Hyatt also retained $265 million of non-controlling preferred equity and provided an additional $50 million of seller financing for the adjacent 45-acre parcel.
The company added the hotel’s sale was part of a “capital allocation strategy to sell owned hotels and reinvest proceeds in asset-light platforms that accelerate growth, and 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 is the company’s fourth largest hotel globally by room count and includes 315,000 square feet of flexible event space.
“The sale of Hyatt Regency Orlando represents the largest single-asset sale in Hyatt history,” said Hyatt President and CEO Mark S. Hoplamazian. “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 US with a new Grand Hyatt hotel.”
