Hyatt Completes $2bn Tortuga Deal
Playa portfolio sale finalized
Photo: Travel and tour world
Hyatt Hotels Corporation has completed the sale of its Playa Hotels & Resorts real estate portfolio to Tortuga Resorts for approximately $2 billion. The transaction covers 15 all-inclusive properties across Mexico, the Dominican Republic and Jamaica, excluding one asset sold to a third party in September 2025. The agreement also includes a potential earnout of up to $143 million, contingent on achieving specified operational performance targets.
Long-term management retained
A central feature of the transaction is Hyatt’s continued operational involvement. The company has entered into 50-year management agreements for 13 of the 14 remaining properties, preserving brand control and operational continuity while transferring real estate ownership. One property is governed by a separate contractual arrangement, without altering the overall strategic intent.
Advancing the asset-light strategy
The deal reinforces Hyatt’s long-term shift toward an asset-light business model. Proceeds from the sale will be used to repay a delayed draw term loan associated with the Playa acquisition. Hyatt expects its pro forma net leverage to remain within the parameters required to maintain its investment-grade credit profile.
Financial structure and retained exposure
Despite divesting the underlying real estate, Hyatt retained $200 million in preferred equity in Tortuga. This structure allows Hyatt to participate in the portfolio’s future upside while significantly reducing capital intensity and balance-sheet exposure to property ownership.
Climate-related operational risks
The transaction coincides with ongoing recovery efforts following Hurricane Melissa, which caused significant damage to several Hyatt properties in Jamaica in October 2025. Seven hotels are expected to remain closed until the fourth quarter of 2026. While no casualties were reported, the closures highlight the increasing operational and financial risks associated with climate events in Caribbean resort markets.
As reported by International Investment experts, Hyatt’s transaction with Tortuga illustrates the evolution of the asset-light model in global hospitality. By monetizing real estate while retaining management control and equity exposure, Hyatt strengthens its balance sheet, mitigates risk and preserves long-term brand value—an increasingly critical strategy amid rising climate and capital market uncertainties.