Hyatt Hotels Corp.’s goal of transforming into an asset-light business is well on its way after several sales in the second quarter.
During the company’s second-quarter earnings call, President and CEO Mark Hoplamazian said it’s been an active first half of the year for the company. Hyatt generated gross proceeds of $812 million from asset sales related to its owned and leased portfolio during the second quarter. Asset sales include the 530-room Hyatt Regency Indian Wells Resort and Spa sold for $145 million; the 1,003-room Grand Hyatt San Antonio River Walk for $310 million; the 189-room The Driskill for $125 million; and the 339-room The Confidante Miami Beach for $232 million. Each property was sold to an unrelated third-party buyer, and Hyatt entered into long-term management agreements on the hotels.
Hoplamazian added that Hyatt is also marketing two owned hotels for sale. “We are also pleased to announce that on August 3, we acquired the Hotel Irvine in Irvine, California, a hotel we know very well, as it was previously the Hyatt Regency Irvine for over 20 years before exiting our system several years ago,” he said. “We purchased this 541-room hotel for $135 million, securing our presence in a highly sought-after location where we are underrepresented.” Hyatt plans to unlock the property’s value through a renovation and repositioning, then will seek a third-party buyer to be a long-term owner.