Saturday, August 17, 2024 Today, Hyatt Hotels Corporation declared the finalized sale of the 1,641-room Hyatt Regency Orlando and an adjoining 45-acre tract to entities linked with RIDA Development Corporation and a real estate fund managed by Ares Management (“Ares”). The transaction, valued at roughly $1.07 billion, also sees Hyatt maintain a long-term management role under its Hyatt Regency brand.
Additionally, Hyatt has preserved $265 million in non-controlling preferred equity and extended $50 million in seller financing for the land parcel. This transaction is a component of Hyatt’s broader strategy to divest directly owned properties and channel these funds into less capital-intensive ventures that foster accelerated growth. This approach has exceeded Hyatt’s target, initially set in 2021, to dispose of assets worth $2 billion; the company has now amassed $2.
6 billion in gross proceeds from these sales over the past three years, achieving a 13.3x earnings multiple. The Hyatt Regency Orlando ranks as the company’s fourth largest hotel worldwide, boasting 1,641 rooms and 315,000 square feet of adaptable event space.
The hotel annually hosts over a million guests and attendees, thanks to its advantageous location near top Orlando attractions and its direct link to the Orange County Convention Center, the U.S.’s second-largest convention facility.
Orlando’s robust tourism sector renders it a critical locale for Hyatt, with RIDA and Ares planning substantial i.