Hyatt Sells Regency Orlando for $1.07 Billion

Hyatt Hotels Corporation has finalized the sale of the 1,641-room Hyatt Regency Orlando and an adjacent 45-acre parcel for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund. This transaction, which includes a long-term management agreement to retain the Hyatt Regency brand, is part of Hyatt's strategy to transition to an asset-light business model, exceeding its original $2 billion asset-disposition commitment. Following the sale, Hyatt anticipates a net rooms growth of 5.5% to 6.0% and a capital return of $1.25 billion to shareholders in 2024. The hotel, which boasts significant event space and is located near the Orange County Convention Center, is expected to see the development of a new Grand Hyatt hotel in the coming years. Despite a projected reduction in Adjusted EBITDA due to the sale, Hyatt's financial outlook remains stable. The sale represents the largest single-asset transaction in Hyatt's history.