InforCapital
M&A Transaction•

Tortuga Buys Playa Resort Portfolio From Hyatt in $2B Deal - InforCapital

Hyatt sells Playa’s 15-property resort portfolio to Tortuga for $2 billion, securing long-term management deals.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Leisure.
  • Geography: Dominican Republic, Jamaica, Mexico.

Analysis

Hyatt Hotels Corporation has announced a definitive agreement to sell the real estate portfolio of Playa Hotels & Resorts to Tortuga Resorts — a joint venture between KSL Capital Partners and Rodina — for a total of $2 billion USD, marking a major step in Hyatt’s shift toward an asset-light business model. The transaction, expected to close by year-end pending regulatory approvals in Mexico and other jurisdictions, includes 15 luxury, all-inclusive resorts located across Mexico, the Dominican Republic, and Jamaica.

Under the deal, Hyatt will retain 50-year management contracts for 13 of the 15 properties, securing long-term fee-based earnings. The remaining two resorts fall under alternate existing agreements. Hyatt also announced it will maintain $200 million in preferred equity as part of the deal and may earn up to $143 million in additional earnouts tied to future operating performance thresholds.

The transaction transforms Hyatt’s June 2025 acquisition of Playa into a fully asset-light deal, reducing ownership risk while enhancing recurring fee-based revenue. The net purchase price of Playa’s management platform now stands at approximately $555 million, following the monetization of real estate holdings.

Hyatt projects $60–$65 million in stabilized Adjusted EBITDA by 2027 from the transaction, reflecting an implied EBITDA multiple of 8.5x to 9.5x — with potential upside if performance milestones are met.

“This deal completes our strategic goal of converting Playa into a high-margin, asset-light growth engine,” said Mark Hoplamazian, Hyatt’s President and CEO. “The long-term management contracts enhance our fee income profile and strengthen shareholder value from year one.”

Proceeds from the sale will be used to repay a delayed draw term loan that helped fund the Playa acquisition, helping Hyatt maintain its investment-grade credit rating. The company expects pro forma leverage to remain within rating agency parameters.

Tortuga Resorts, formed specifically to consolidate ownership of premium beachfront resorts in Latin America and the Caribbean, will integrate the Playa assets into its existing 2,900-room portfolio. Backed by private equity leader KSL Capital Partners and Mexico-based Rodina, Tortuga aims to become a dominant regional hospitality platform.

Advisors to the deal include BDT & MSD Partners and Berkadia for Hyatt, and Goldman Sachs for Tortuga. Legal counsel was provided by Latham & Watkins for Hyatt and Simpson Thacher & Bartlett for Tortuga.

This landmark transaction underscores growing investor appetite for all-inclusive beachfront properties and demonstrates how global hotel operators like Hyatt are evolving their business models to reduce asset exposure while securing reliable, long-term revenue streams.