Hyatt Hotels Corporation has announced the sale of the Hyatt Regency Orlando to affiliates of RIDA Development Corporation and an Ares Management Real Estate fund for approximately $1.07 billion.
The sale includes the 1,641-room hotel and an adjacent 45-acre parcel of land. Despite the sale, Hyatt will retain a long-term management agreement under the Hyatt Regency brand and maintain a $265 million non-controlling preferred equity stake, alongside providing $50 million in seller financing for the adjacent land.
This sale is part of Hyatt’s broader capital allocation strategy, which focuses on selling owned properties and reinvesting in asset-light platforms to fuel growth. The deal exceeds Hyatt’s expanded $2 billion asset-disposition goal announced in 2021, with the company now having realized $2.6 billion in gross proceeds over the past three years.
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Located near Orlando’s top attractions and directly connected to the Orange County Convention Center, the Hyatt Regency Orlando is a significant property in Hyatt’s portfolio, welcoming over one million guests annually. RIDA and Ares plan to invest in a major renovation of the hotel, enhancing guest rooms and amenities. Additionally, a new Grand Hyatt hotel with approximately 2,500 rooms is planned for the adjacent land, further expanding Hyatt’s presence in Orlando.
Mark S. Hoplamazian, Hyatt’s CEO, called the sale the largest single-asset transaction in the company’s history and highlighted the ongoing collaboration with RIDA and Ares in developing the Orange County Convention Center district.
RIDA’s CEO Ira Mitzner and Ares’ Co-Head of U.S. Real Estate Investments, Andrew Holm, expressed enthusiasm for the partnership, citing the opportunity to further develop the site into a premier destination for both business and leisure travelers. The proposed Grand Hyatt hotel will add to the convention center’s capacity, positioning the area as a leading convention and tourism hub.
Source: Hyatt Sells Hyatt Regency Orlando for $1.07 Billion in Landmark Deal
