CHICAGO, Illinois—Hyatt Lodges Company introduced that it has entered right into a definitive settlement to promote the whole lot of Playa’s owned actual property portfolio, acquired from Playa on June 17, 2025, for $2.0 billion, to Tortuga Resorts (“Tortuga”), a three way partnership between an affiliate of KSL Capital Companions, LLC and Rodina. Hyatt can obtain as much as a further $143 million earnout if sure working thresholds are met. The actual property transaction is predicted to shut earlier than the tip of 2025 and is topic to regulatory approval in Mexico and different customary closing situations.
The actual property portfolio consists of 15 all-inclusive resort property situated throughout Mexico, the Dominican Republic, and Jamaica. Concurrent with the actual property sale, Hyatt and Tortuga will enter into 50-year administration agreements for 13 of the 15 properties, with phrases according to Hyatt’s current all-inclusive administration charge construction, whereas the remaining two properties are beneath separate contractual preparations. Hyatt will retain $200 million of most well-liked fairness in reference to the actual property transaction.
Following the sale of the actual property portfolio, Hyatt’s internet buy worth for Playa’s asset-light administration enterprise is roughly $555 million, internet of gross proceeds from asset gross sales. Hyatt expects to earn $60 to $65 million of stabilized Adjusted EBITDA in 2027, inclusive of earnings from Limitless Trip Membership and ALG Holidays, representing an implied a number of of 8.5x – 9.5x. The implied a number of can be additional improved to the extent that the earnout situations are met.
“The deliberate actual property sale to Tortuga transforms the acquisition of Playa Lodges & Resorts into a totally asset-light transaction and will increase Hyatt’s fee-based earnings,” mentioned Mark Hoplamazian, president and chief government officer, Hyatt. “Hyatt has secured long-term, sturdy administration agreements, and the deliberate actual property sale demonstrates Hyatt’s dedication to its asset-light enterprise mannequin and skill to ship worth to shareholders that’s accretive within the first full yr.”
Upon completion of the actual property sale, Hyatt is required to make use of the proceeds to repay the delayed draw time period mortgage used to fund a portion of the Playa acquisition and expects professional forma internet leverage to be according to thresholds crucial to take care of its investment-grade credit score profile.
In reference to the transaction, BDT & MSD Companions is performing as lead monetary advisor to Hyatt, with Berkadia serving as Hyatt’s actual property advisor. Latham & Watkins LLP is Hyatt’s authorized advisor. Goldman Sachs & Co. LLC is performing as unique monetary advisor to Tortuga, and Simpson Thacher & Bartlett LLP is performing as Tortuga’s authorized advisor.
