Research Update: Hyatt Hotels Corp. Outlook Revised To Stable On Accelerated Asset Sales And Planned Debt Reduction; 'BBB-' ICR Affirmed

Hyatt Hotels Corp. has signed a definitive agreement to sell all 15 hotels in Playa?s owned real estate portfolio for $2 billion to Tortuga Resorts, a joint venture between an affiliate of KSL Capital Partners LLC and Rodina. Hyatt can achieve up to an additional $143 million earnout if certain operating thresholds are met and will also retain $200 million of preferred equity following the transaction. Hyatt will enter into 50-year management agreements with Tortuga for 13 of the 15 hotels upon closing, while two properties remain under separate management agreements. The company expects to close the sale before the end of 2025, subject to regulatory approval in Mexico. Subsequent to the transaction close, Hyatt is required to use the

...Hyatt Hotels Corp. has signed a definitive agreement to sell all 15 hotels in Playa's owned real estate portfolio for $2 billion to Tortuga Resorts, a joint venture between an affiliate of KSL Capital Partners LLC and Rodina. Hyatt can achieve up to an additional $143 million earnout if certain operating thresholds are met and will also retain $200 million of preferred equity following the transaction. Hyatt will enter into 50-year management agreements with Tortuga for 13 of the 15 hotels upon closing, while two properties remain under separate management agreements. The company expects to close the sale before the end of 2025, subject to regulatory approval in Mexico....

Research Update