Hyatt sells Hyatt Regency Orlando for $1.07 Billion

Hyatt has announced the sale of the 1,641-room Hyatt Regency Orlando and its adjacent 45 acres of land to affiliates of RIDA Development Corporation and Ares Management’s Real Estate fund for approximately $1.07 billion. Despite the sale, Hyatt will retain a long-term management agreement under the Hyatt Regency brand, ensuring continued operational oversight of the property. Additionally, Hyatt has maintained a $265 million non-controlling equity stake and provided $50 million in seller financing for the adjacent parcel.

This sale aligns with Hyatt's capital allocation plan, which focuses on selling owned hotels to reinvest in asset-light platforms that drive growth. The transaction exceeds Hyatt’s expanded $2 billion asset-disposition commitment announced in 2021. Over the past three years, Hyatt has generated $2.6 billion in gross proceeds, net of acquisitions, at a 13.3x multiple, demonstrating the effectiveness of its strategy.

Mark S. Hoplamazian, president and chief executive officer, Hyatt, 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 US with a new Grand Hyatt hotel.”

In addition to the Hyatt Regency Orlando acquisition, RIDA and Ares have entered into a development agreement with Hyatt to build a new Grand Hyatt hotel on the adjacent 45 acre parcel. Once certain conditions are met, Hyatt and its partners will finalise a long-term management agreement for the new property. The planned Grand Hyatt Orlando is expected to feature approximately 2,500 rooms and will be developed in multiple phases. This new development will create a combined total of over 4,000 guest rooms across the Hyatt Regency Orlando and the future Grand Hyatt Orlando, solidifying Hyatt's presence in the high-demand Orlando market.