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Hyatt Sells Playas Real Estate Portfolio for $2 Billion to Tortuga

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Business Honor
07 July, 2025

Sale reduces Hyatt's physical asset ownership, enhancing its asset-light business model and fee-based revenue.

Hyatt Hotels has revealed a deal to sell its Playas real estate portfolio to Tortuga Resorts for $2 billion. It is one of the steps the company is taking towards a more asset-light business model. The sale of 15 resort properties will enable the U.S.-based hospitality giant to lighten its ownership of physical assets while enhancing its fee-based revenue. The sale follows Hyatt’s acquisition of Playa Hotels in February for $2.6 billion, including debt. Through the real estate transaction, Hyatt's net cost of purchasing the remaining Playa business will be lowered to around $555 million. The deal remains pending regulatory approval in Mexico but will close by year-end 2025.

Hyatt and Tortuga will also sign long-term management contracts for the resorts. Hyatt, under these contracts, will continue managing the properties for up to 50 years. Thirteen of the 15 resorts will be governed under Hyatt's current management fee structure, while the other two will have different terms. By divesting the real estate portfolio, Hyatt makes its Playa acquisition an all-asset-light transaction. This is a tactical approach that enables the company to concentrate more on franchising and managing hotels than on owning actual property. Hyatt CEO Mark Hoplamazian explained that this deal would considerably boost the company's fee-based income. Hyatt believes its mix of asset-light earnings will be at least 90% by 2027.

The proceeds of the sale will be applied toward repayment of the loan that was utilized to make the Playa acquisition. This realignment is an important aspect of Hyatt's continued efforts to simplify its operations and optimize shareholder value. This strategic step is likely to find favor with investors, who prefer Hyatt's increasing emphasis on an asset-light business model.