Hyatt Exceeds $2 Billion Sell-Down
Commitment
Hyatt Hotels Corporation (NYSE:H) today announced that an
affiliate of Hyatt has completed the sale of the 1,641-room Hyatt
Regency Orlando and adjacent 45 acres of land to affiliates of RIDA
Development Corporation and an Ares Management Real Estate fund
(“Ares”) for approximately $1.07 billion, while retaining a
long-term management agreement under the Hyatt Regency brand. In
connection with the transaction, Hyatt retained $265 million of
non-controlling preferred equity and provided an additional $50
million of seller financing for the adjacent 45-acre parcel.
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Hyatt Completes Sale of Hyatt Regency
Orlando, Exceeding $2 Billion Sell-Down Commitment (Photo: Business
Wire)
The sale of Hyatt Regency Orlando is part of Hyatt’s capital
allocation strategy to sell owned hotels and reinvest proceeds in
asset-light platforms that accelerate growth, and exceeds Hyatt’s
expanded $2 billion asset-disposition commitment announced in 2021.
Over a three-year period, Hyatt has now realized $2.6 billion of
gross proceeds, net of acquisitions, at a 13.3x multiple.
Hyatt Regency Orlando, the fourth largest Hyatt hotel globally
by room count, has 1,641 rooms with 315,000 square feet of flexible
event space. The hotel – which welcomes more than one million
guests and attendees on average per year – is strategically
positioned in the market given its prime location near popular
Orlando attractions and direct connection to the Orange County
Convention Center, the second largest convention facility in the
U.S. The city’s strong tourism industry makes Orlando a key market,
and RIDA and Ares intend to invest additional capital in a
significant renovation plan that will focus on guestrooms and other
amenities to further enhance the guest experience.
Additionally, with significant experience developing large-scale
convention properties, RIDA and Ares have entered into a
development agreement with Hyatt for a new Grand Hyatt hotel on the
45 acres of land adjacent to Hyatt Regency Orlando. Upon the
satisfaction of certain conditions, Hyatt and an affiliate of RIDA
and Ares will enter into a long-term management agreement for the
hotel.
Mark S. Hoplamazian, president and chief executive officer,
Hyatt, said, “The sale of Hyatt Regency Orlando represents the
largest single-asset sale in Hyatt history. We are thrilled to be
working with RIDA and Ares on this transaction, and in
collaboration with these world-class developers, we will continue
driving the success of Hyatt Regency Orlando and thoughtfully
expand our brand footprint in the most-visited destination in the
U.S. with a new Grand Hyatt hotel.”
RIDA and Ares anticipate pursuing necessary approvals and other
governmental support over the next several years for the planned
Grand Hyatt Orlando, which is expected to have approximately 2,500
rooms and be developed in multiple phases. The development of Grand
Hyatt Orlando is positioned to create a combined total of more than
4,000 guestrooms across Hyatt Regency Orlando and Grand Hyatt
Orlando at the Orange County Convention Center, further positioning
Hyatt strategically in this thriving high-demand market.
Ira Mitzner, President & CEO of RIDA Development Corp.,
added, “We are extremely pleased to be partnering again with Ares
in this historic transaction. We are excited to work with Hyatt to
grow and enhance the Orange County Convention Center (OCCC)
district and create a guest experience unparalleled for both group
and leisure customers. We look forward to collaborating on a
visionary public-private partnership with the State of Florida,
Orange County, the OCCC, and all community stakeholders.”
Andrew Holm, Partner and Ares’ Co-Head of U.S. Real Estate
Investments, added, “Hyatt has established Hyatt Regency Orlando as
a landmark of its community’s vibrant business and leisure
activity, and we are excited to work closely with the Hyatt team
and advance our partnership with RIDA to realize the potential of
this important location. We look forward to leveraging our
extensive investment experience undertaking large-scale, complex
projects as we seek to create long-term value in this attractive
market.”
To learn more about Hyatt Regency Orlando, visit
hyattregencyorlando.com.
The term “Hyatt” is used in this release for convenience to
refer to Hyatt Hotels Corporation and/or one or more of its
affiliates.
About Hyatt Hotels
Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading
global hospitality company guided by its purpose – to care for
people so they can be their best. As of June 30, 2024, the
Company's portfolio included more than 1,350 hotels and
all-inclusive properties in 78 countries across six continents. The
Company's offering includes brands in the Timeless Collection,
including Park Hyatt®, Grand Hyatt®, Hyatt
Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt
Place®, Hyatt House®, Hyatt Studios, and
UrCove; the Boundless Collection, including Miraval®,
Alila®, Andaz®, Thompson Hotels®, Dream®
Hotels, Hyatt Centric®, and Caption by Hyatt®;
the Independent Collection, including The Unbound Collection by
Hyatt®, Destination by Hyatt®, and JdV by Hyatt®;
and the Inclusive Collection, including Impression by
Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry®
Wellness & Spa Resorts, Secrets® Resorts & Spas,
Breathless Resorts & Spas®, Dreams® Resorts &
Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels
& Resorts®, and Sunscape® Resorts & Spas.
Subsidiaries of the Company operate the World of Hyatt® loyalty
program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation
Club®, Amstar DMC destination management services, and Trisept
Solutions® technology services. For more information, please visit
www.hyatt.com.
About Hyatt Regency
The Hyatt Regency brand is a global collection of hotels and
resorts found in more than 230 locations in over 40 countries
around the world. The depth and breadth of this diverse portfolio,
from expansive resorts to urban city centers, is a testament to the
brand’s evolutionary spirit. For more than 50 years, the Hyatt
Regency brand has championed fresh perspectives and enriching
experiences, while its forward-thinking philosophy provides guests
with inviting spaces that bring people together and foster a spirit
of community. As a hospitality original, Hyatt Regency hotels and
resorts are founded on openness—our colleagues consistently serve
with open minds and open hearts to deliver unforgettable
celebrations, effortless relaxation and notable culinary
experiences alongside expert meetings and technology-enabled
collaboration. The brand prides itself on an everlasting reputation
for insightful care—one that welcomes all people across all
countries and cultures, generation after generation. For more
information, please visit hyattregency.com. Follow @HyattRegency on
Facebook, Twitter and Instagram, and tag photos with
#HyattRegency.
About Grand Hyatt
Around the world, Grand Hyatt hotels bring travel dreams to life
by celebrating the iconic in small details and magnificent moments.
Located at the crossroads of local culture and global business
within major gateway cities and resort destinations, each Grand
Hyatt hotel is uniquely designed to be a captivating destination
within a destination. Grand Hyatt hotels deliver welcoming and
elevated service, first-class accommodations and an abundance of
options within a multicultural backdrop of dramatic architecture
and bold and vibrant design. Grand Hyatt hotels boast inventive
restaurants, luxury spas, fitness centers, and business and meeting
facilities. For additional information or to make a reservation,
please visit grandhyatt.com. Follow @GrandHyatt on Facebook and
Instagram, and tag photos with #GrandHyatt.
About RIDA Development
Corporation
RIDA Development Corporation is an internationally recognized
real estate organization that has successfully developed and owned
office, residential, industrial, hospitality, mixed-use, convention
and retail developments for nearly 50 years. Established in 1975,
RIDA has invested in over $7 billion of successful investment and
development projects and has been a pre-eminent big-box, conference
hotel developer and owner in the US over the past two decades.
Recent developments by RIDA include the Gaylord Rockies (1,500
rooms), Marriott Marquis Houston (1,000 rooms), the Hilton Orlando
(1,424 rooms), the Omni Orlando Resort at ChampionsGate (1,005
rooms), and the Gaylord Pacific Resort and Conference Center (1,600
rooms) which is under development on the San Diego Bayfront and
scheduled to open in May 2025. RIDA’s corporate headquarters is
located in Houston, TX with regional offices in Orlando, FL, San
Diego, CA and Warsaw, Poland.
About Ares Management
Corporation
Ares Management Corporation (NYSE: ARES) is a leading global
alternative investment manager offering clients complementary
primary and secondary investment solutions across the credit, real
estate, private equity and infrastructure asset classes. We seek to
provide flexible capital to support businesses and create value for
our stakeholders and within our communities. By collaborating
across our investment groups, we aim to generate consistent and
attractive investment returns throughout market cycles. As of June
30, 2024, Ares Management Corporation's global platform had over
$447 billion of assets under management with more than 2,950
employees operating across North America, Europe, Asia Pacific and
the Middle East. For more information, please visit
www.aresmgmt.com.
The Ares Real Estate team oversees approximately $52 billion of
assets under management and has more than 270 investment
professionals across seventeen local offices in core markets in the
U.S. and Europe as of June 30, 2024. The team leverages its scale
and vertically integrated operating platform to execute
comprehensive real estate equity and debt strategies that are
flexible by geography, product type and sector.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements include statements about our development plans for a
Grand Hyatt property, strategies, development prospects or future
events and involve known and unknown risks that are difficult to
predict. As a result, our actual results, performance or
achievements may differ materially from those expressed or implied
by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as
"may," "could," "expect," "intend," "plan," "seek," "anticipate,"
"believe," "estimate," "predict," "potential," "continue,"
"likely," "will," "would" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by us
and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, among others, the risks discussed in the Company’s filings
with the SEC, including our annual report on Form 10-K and
subsequent reports, which filings are available from the SEC. We
caution you not to place undue reliance on any forward-looking
statements, which are made only as of the date of this press
release. We do not undertake or assume any obligation to update
publicly any of these forward-looking statements to reflect actual
results, new information or future events, changes in assumptions
or changes in other factors affecting forward-looking statements,
except to the extent required by applicable law. If we update one
or more forward-looking statements, no inference should be drawn
that we will make additional updates with respect to those or other
forward-looking statements.
HHC-FIN
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version on businesswire.com: https://www.businesswire.com/news/home/20240816453911/en/
Hyatt Contacts: Media Jorian Weiner, 312.780.3004,
jorian.weiner@hyatt.com
Investors Adam Rohman, 312.780.5834,
adam.rohman@hyatt.com
Ares Contact: media@aresmgmt.com
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