Hyatt Hotels Corp. has sold and acquired two properties as part of its ongoing capital strategy.
On June 4, a Hyatt affiliate sold the 490-room Hyatt Regency Lost Pines Resort and Spa near Austin, Texas, for approximately $275 million to an unrelated third party and entered into a long-term management agreement for the property upon sale. The owner anticipates enhancing and expanding the property, which is located along the banks of the Colorado River.
On June 3, a Hyatt affiliate acquired the 59-room Ventana Big Sur, an Alila Resort, located in Big Sur, Calif., for approximately $148 million. The resort also includes 63 camping areas and 15 tent cabins and is one of three Alila resorts operating in California. Hyatt intends to turn to evaluating the sale of this asset while retaining a long-term management agreement.
With the completion of both asset transactions, Hyatt remains on track to realize net proceeds from the sale of real estate of approximately $1.5 billion by March 2022 as part of its capital strategy announced in March 2019. To date, and including the net proceeds from these two most recent transactions, the company has realized approximately $1.1 billion in net proceeds while continuing to expand its management and franchising business.
In addition to reducing the earnings from owned and leased hotels, Hyatt has expanded its managed and franchised property base by approximately 150 hotels, or by 18 percent, from March 2019 to May 2021, which will drive an increased percentage of earnings coming from management and franchising activity.