Hyatt Hotels Corp. closed the loop on its acquisition and prompt sale of the Playa Hotels & Resorts portfolio at the year-end buzzer.
In a news release, Hyatt said it closed the sale of 14 all-inclusive Playa resorts to Tortuga Resorts for about $2 billion on Tuesday. The sale was initially announced on June 30, less than two weeks after Hyatt closed on its deal to acquire the portfolio for $2.6 billion.
“This closing is the culmination of a transformative transaction for Hyatt’s Inclusive Collection,” said Javier Águila, president of Hyatt's Inclusive Collection. “With this transaction, we’ve secured long-term management agreements for a portfolio of exceptional resorts that reflect our commitment to excellence."
Hyatt has entered into a 50-year management agreement for 13 of the 14 properties in the portfolio. The deal initially included 15 Playa resorts, but Hyatt sold one of the properties to a third-party buyer for $22 million in September.
The Chicago-based hotel brand company can earn an additional $143 million if certain operating thresholds are met. Hyatt has also retained $200 million of preferred equity in Tortuga.
Hyatt's net purchase price for Playa's management business is about $555 million, net of gross proceeds from asset sales.