Hyatt Hotels Corporation announced that an affiliate has completed the sale of the 1,641-room Hyatt Regency Orlando and adjacent 45 acres of land to affiliates for approximately $1.07 billion.
Hyatt will maintain a long-term management agreement under the Hyatt Regency brand, retain $265 million in non-controlling preferred equity and provide an additional $50 million in seller financing for the adjacent 45-acre property.
The sale of Hyatt Regency Orlando is part of Hyatt’s capital allocation strategy to sell owned hotels and reinvest the proceeds in asset-light platforms that accelerate growth. The deal exceeds the company’s expanded $2 billion asset divestiture commitment announced in 2021.
Over the past three years, Hyatt has generated gross revenue of $2.6 billion.
“The sale of Hyatt Regency Orlando is the largest single property sale in Hyatt history,” said Mark S. Hoplamazian, President and CEO of Hyatt.
“We are very pleased to partner with RIDA and Ares on this transaction. Working with these world-class developers, we will continue to advance the success of Hyatt Regency Orlando and expand our brand presence in the nation’s most visited destination with a new Grand Hyatt hotel,” continued Hoplamazian.
Hyatt Regency Orlando, the fourth largest Hyatt hotel in the world by room count, features 1,641 rooms and 300,000 square feet of flexible event space. The property welcomes more than one million guests and attendees annually.
In addition, RIDA and Ares have entered into a development agreement with Hyatt for a new Grand Hyatt hotel on the 45-acre site adjacent to the Hyatt Regency Orlando. Upon satisfaction of the terms, Hyatt and an affiliate of RIDA and Ares will enter into a long-term management agreement for the hotel.
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