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Investing.com - Hyatt Hotels (NYSE:H), currently trading at $140.96 with a market capitalization of $13.4 billion, announced the sale of Playa’s owned real estate portfolio for $2.0 billion, including a $200 million preferred equity interest retained by Hyatt, according to Citi.
The transaction, announced Monday before market open, involves 15 hotels and 5,779 rooms from Playa’s owned hotel portfolio as of the first quarter of 2025, representing a sale price of approximately $346,000 per room. The deal aligns with Hyatt’s moderate debt profile, currently maintaining a debt-to-equity ratio of 1.33.
Citi views this transaction positively due to both its substantial size and the quick execution following Hyatt’s acquisition of Playa. The investment bank maintained its Neutral rating and $138.00 price target on Hyatt stock. According to InvestingPro, Hyatt shows strong fundamentals with a P/E ratio of 17.3 and has delivered robust returns over the past five years.
The sale aligns with Hyatt’s previously announced strategy to divest $2.0 billion in assets by 2027, with Playa’s owned hotels expected to comprise the majority of these planned dispositions.
Hyatt completed the transaction faster than initially anticipated, having only recently acquired Playa before executing this significant real estate sale.
In other recent news, Hyatt Hotels Corporation has finalized its $2.6 billion acquisition of Playa Hotels & Resorts, adding 15 all-inclusive resorts across Mexico, the Dominican Republic, and Jamaica to its portfolio. This strategic move aims to enhance Hyatt’s presence in the all-inclusive resort market. Following this acquisition, Hyatt announced a definitive agreement to sell Playa’s entire real estate portfolio for $2 billion to Tortuga Resorts, a joint venture between KSL Capital Partners (WA:CPAP) and Rodina. The sale is expected to close by the end of 2025, subject to regulatory approval. Hyatt will retain a $200 million preferred equity position and enter into 50-year management agreements for 13 of the properties. Stifel has responded to these developments by raising its price target for Hyatt to $149, maintaining a Hold rating. This transaction transforms the Playa acquisition into a fully asset-light deal, increasing Hyatt’s fee-based earnings potential. The company anticipates earning $60 to $65 million of stabilized Adjusted EBITDA by 2027.
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