Hyatt Hotels Corp. has increased its 2021 net rooms growth outlook to approximately 6%, while at the same time completed the sale (while retaining management) of 490-room Hyatt Regency Lost Pines Resort and Spa near Austin, Texas, for approximately US$275 million, and acquired the 59-room Ventana Big Sur, an Alila Resort, located in Big Sur, California for approximately US$148 million.
Hyatt’s deal on June 4 with Service Properties Trust (SVC) to continue to manage 17 of the 22 Hyatt Place hotels owned by subsidiaries of SVC for a 10-year term resulted in the net rooms growth outlook update.
Hyatt’s acquisition in Big Sur secures its long-term brand presence in a highly sought-after resort destination. The resort, situated on 162 acres, also includes 63 camping areas and 15 tent cabins. Hyatt said it intends to evaluate the sale of this asset while retaining a long-term management agreement.
With the completion of both asset transactions, Hyatt added that it remains on track to realize net proceeds from the sale of real estate of approximately US$1.5 billion by March 2022 as part of its capital strategy announced in March 2019. To date, Hyatt has realized approximately US$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%, from March 2019 to May 2021 that will drive an increased percentage of earnings coming from management and franchising activity.