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Hyatt Completes Sale of Hyatt Regency Orlando for $1.07 Billion Page 1

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Hyatt Completes Sale of Hyatt Regency Orlando for .07 Billion Page 1

Hyatt Hotels Corporation (NYSE:H) today announced that a subsidiary of Hyatt has completed the sale of the 1,641-room Hyatt Regency Orlando and an adjacent 45 acres of land to affiliates of RIDA Development Corporation and an Ares Management Real Estate fund (“Ares”) 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 in seller financing for the adjacent 45 acres of land.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240816453911/en/

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Hyatt Completes Sale of Hyatt Regency Orlando, Exceeds $2 Billion Sales Commitment (Photo: Business Wire)

Hyatt Completes Sale of Hyatt Regency Orlando, Exceeds $2 Billion Sales Commitment (Photo: Business Wire)

The sale of Hyatt Regency Orlando is part of Hyatt’s capital allocation strategy to sell owned hotels and reinvest the proceeds in asset-light platforms that accelerate growth. The sale exceeds Hyatt’s expanded $2 billion commitment for asset sales announced in 2021. Over a three-year period, Hyatt has now realized $2.6 billion in gross proceeds, excluding acquisitions, at a multiple of 13.3x.

Hyatt Regency Orlando, the fourth-largest Hyatt hotel in the world by number of rooms, features 1,641 rooms with 315,000 square feet of flexible event space. The hotel, which typically welcomes more than one million guests and attendees annually, is strategically positioned in the market due to its prime location near popular Orlando attractions and direct access to the Orange County Convention Center, the second-largest convention center in the U.S. The city’s strong tourism industry makes Orlando a key market, and RIDA and Ares plan to invest additional capital in a significant renovation plan focused on guest rooms and other amenities to further enhance the guest experience.

Additionally, RIDA and Ares, with their significant experience developing large-scale convention venues, have entered into a development agreement with Hyatt for a new Grand Hyatt hotel on the 45 acres adjacent to the Hyatt Regency Orlando. Upon satisfaction of certain conditions, Hyatt and an affiliate of RIDA and Ares will enter into a long-term management agreement for the hotel.

Mark S. Hoplamazian, president and chief executive officer of Hyatt, said, “The sale of Hyatt Regency Orlando is the largest single-asset sale in Hyatt’s history. We are pleased to partner with RIDA and Ares on this transaction, and in partnership with these world-class developers, we will continue to drive 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.”

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