The 1,641-room Hyatt Regency Orlando (formerly The Peabody) and adjacent 45 acres of land has been sold to affiliates of RIDA Development Corporation and an Ares Management Real Estate fund for approximately $1.07 billion, while retaining a long-term management agreement under the Hyatt Regency brand. In connection with the transaction, Hyatt retained $265 million of non-controlling preferred equity and provided an additional $50 million of seller financing for the adjacent 45-acre parcel.
The sale of Hyatt Regency Orlando – located across the street from the Orange County Convention Center – is part of Hyatt’s capital allocation strategy to sell owned hotels and reinvest proceeds in asset-light platforms that accelerate growth, and exceeds Hyatt’s expanded $2 billion asset-disposition commitment announced in 2021.
A staple of accomodations for the PGA Show held annually un January in the OCCC – the Hyatt Regency Orlando, is the fourth largest Hyatt hotel globally by room count.
Mark S. Hoplamazian, president and chief executive officer, Hyatt, said,
“The sale of Hyatt Regency Orlando represents the largest single-asset sale in Hyatt history,” said Mark S. Hoplamazian, president and chief executive officer of Hyatt, “We are thrilled to be working with RIDA and Ares on this transaction, and in collaboration with these world-class developers, we will continue driving the success of Hyatt Regency Orlando and thoughtfully expand our brand footprint in the most-visited destination in the U.S. with a new Grand Hyatt hotel.”
Photo Courtesy of Hyatt Hotels