Published on
December 31, 2025
Hyatt Hotels Corporation (NYSE: H) has completed the sale of its real estate portfolio, originally acquired from Playa Hotels & Resorts N.V., to Tortuga Resorts for approximately $2 billion. This deal marks a significant moment in Hyatt’s strategy to streamline operations and focus on its asset-light business model. Tortuga, a renowned real estate and asset management platform specializing in luxury beachfront hospitality across Mexico and the Caribbean, will now manage a portfolio of properties previously under Hyatt’s control. Hyatt stands to receive up to an additional $143 million earnout based on specific operating milestones and has retained $200 million of preferred equity in Tortuga as part of the agreement.
Hyatt’s Divestiture of Playa Properties
The portfolio sold to Tortuga includes 15 all-inclusive resorts located across prime destinations in Mexico, the Dominican Republic, and Jamaica. Hyatt had previously sold one of these properties to a separate third-party buyer for $22 million on September 18, 2025. With this recent transaction, Hyatt has effectively divested the entire Playa real estate portfolio for a total of $2 billion.
As part of the deal, Hyatt and Tortuga have entered into long-term management agreements for 13 of the 14 properties in the portfolio. These agreements, spanning 50 years, are aligned with Hyatt’s existing all-inclusive management agreements, ensuring continuity in operations and maintaining Hyatt’s involvement in the hospitality experience at these properties. The remaining property is subject to a separate contractual arrangement.
A Strategic Shift to an Asset-Light Model
The completion of this sale is viewed as a crucial step in Hyatt’s shift toward an asset-light business model, allowing the company to focus on expanding its global reach through management and franchise agreements rather than owning physical assets. Hyatt’s commitment to this model aligns with its broader strategy to drive long-term growth while ensuring shareholder value. The proceeds from the real estate sale will be directed toward repaying the delayed draw term loan that funded part of Hyatt’s earlier Playa acquisition.
Hyatt anticipates that its pro forma net leverage will remain in line with the thresholds required to maintain its investment-grade credit rating. The company remains focused on delivering high-quality experiences to its guests while optimizing its financial position.
Tortuga’s Rise in Luxury Beachfront Hospitality
For Tortuga Resorts, the acquisition represents a major milestone in its journey to becoming a leading platform in luxury beachfront hospitality. The deal significantly enhances Tortuga’s portfolio, allowing the company to establish a stronger foothold in the high-demand vacation destinations of Mexico and the Caribbean. Tortuga Resorts, led by CEO Leo Schlesinger, is poised to capitalize on this expansion, working closely with Hyatt and other brand partners to offer unparalleled experiences to guests while unlocking new opportunities for growth.
Schlesinger expressed excitement about deepening the partnership with Hyatt, emphasizing the potential to create long-term value for all stakeholders. Tortuga’s focus on responsible growth, sustainable development, and strong local partnerships will play a key role in realizing these opportunities.
A Partnership Rooted in Excellence
Javier Águila, President of Hyatt’s Inclusive Collection, described the transaction as a culmination of a transformative process for Hyatt’s all-inclusive portfolio. He highlighted the strong cultural alignment between Playa and Hyatt throughout the transaction, noting the shared commitment to excellence and care that has defined their partnership. This alignment has been essential in achieving the sale and ensuring that the resorts will continue to offer exceptional all-inclusive experiences for guests.
Hyatt’s relationship with Tortuga is expected to flourish in the coming years, with both companies sharing a dedication to delivering high-quality service and memorable vacations. Águila thanked the teams involved in making the transaction possible and expressed confidence that the agreement would support the continued success of the resorts under Tortuga’s management.
Impacts from Hurricane Melissa and Hyatt’s Response
In addition to the completion of the Tortuga transaction, Hyatt has addressed the ongoing impact of Hurricane Melissa, which caused significant damage to seven Hyatt properties in Jamaica in October 2025. As a result, these properties are expected to remain closed until the fourth quarter of 2026. Fortunately, no lives were lost, and all guests and colleagues were safely evacuated.
Hyatt has provided financial assistance to affected colleagues through the Hyatt Care Fund, including donations from colleagues and direct financial support. This response underscores Hyatt’s commitment to supporting its workforce during times of crisis. The company’s actions to assist those impacted by the hurricane reflect its dedication to employee care and recovery efforts in the region.
Financial Advisors and Legal Counsel Involved in the Transaction
In connection with the sale, Hyatt was advised by BDT & MSD Partners as its lead financial advisor, with Berkadia serving as the real estate advisor and Latham & Watkins LLP providing legal counsel. Tortuga Resorts received financial advisory services from Goldman Sachs & Co. LLC, with Simpson Thacher & Bartlett LLP acting as its legal counsel. The collaboration between these advisors ensured that the transaction was executed efficiently, with all necessary legal and financial frameworks in place.
Looking Ahead: Hyatt’s Continued Commitment to Growth
The successful sale of the Playa real estate portfolio to Tortuga represents a significant step in Hyatt’s continued transformation and growth. The company’s focus on expanding its portfolio through management agreements and strategic partnerships will allow it to maintain its leadership position in the global hospitality industry. Hyatt is committed to delivering exceptional guest experiences, while its investment-grade credit profile ensures the company’s ability to pursue future opportunities and sustain long-term growth.
As Hyatt moves forward, the company remains dedicated to its purpose of caring for people so they can be their best, creating memorable experiences for guests, and providing opportunities for colleagues and partners alike. The partnership with Tortuga will play a vital role in achieving these goals, marking a new chapter for Hyatt’s all-inclusive business in the years to come.
