Hyatt to Sell Playa’s Real Estate Portfolio to Tortuga for $2 Billion

Hyatt Hotels Corporation announced a definitive agreement to sell Playa’s owned real estate portfolio to Tortuga Resorts for $2 billion. The portfolio includes 15 all-inclusive resort properties located in Mexico, the Dominican Republic, and Jamaica. The transaction is anticipated to close before the end of 2025, pending regulatory approval in Mexico and other customary conditions.

As part of the agreement, Hyatt will enter into 50-year management contracts for 13 of the 15 properties with Tortuga, maintaining its existing all-inclusive management fee structure. Two properties will be managed under separate contractual arrangements. Additionally, Hyatt will retain $200 million in preferred equity related to the transaction.

Following the sale, Hyatt’s net purchase price for Playa’s asset-light management business will be approximately $555 million, after accounting for gross proceeds from asset sales. The company expects to achieve $60 to $65 million in stabilized Adjusted EBITDA by 2027, including earnings from its Unlimited Vacation Club and ALG Vacations. The implied EBITDA multiple is projected to be between 8.5x and 9.5x, potentially improving if certain earnout conditions are met.

Hyatt will use the proceeds from the sale to repay the delayed draw term loan utilized for part of the Playa acquisition. The company anticipates maintaining a pro forma net leverage consistent with investment-grade credit profile thresholds.

Financial advisory services for Hyatt in this transaction are being provided by BDT & MSD Partners, with Berkadia serving as the real estate advisor. Legal advice is being offered by Latham & Watkins LLP. Tortuga’s financial advisor is Goldman Sachs & Co. LLC, and legal counsel is provided by Simpson Thacher & Bartlett LLP.