Hyatt To Sell $1.5B Worth Of Properties Over The Next 3 Years
Hyatt Hotels Corp. plans to dispose of $1.5B worth of properties over the next three years in an effort to shift its business strategy.
The hotel company wants to focus its efforts on the management and franchise side of the business in an attempt to drive shareholder value by offloading a number of its assets to boost returns over time, Hotel News Now reports. The sales will also provide funds for future growth investment.
Hyatt has been pushing to add value to its portfolio as of late by investing in new lines of business. This year the company acquired boutique fitness and spa brands Miraval Group and Exhale Spa. It also invested in room-sharing service Oasis and recently announced a partnership to exclusively list its high-end suites on a platform called Suiteness.
As for its properties, Royal Palms Resort and Spa in Phoenix and the Hyatt Regency Scottsdale Resort & Spa were recently sold for a combined total of $305M. The Hyatt Regency Grand Cypress was sold for $206M in May and the Hyatt Regency Louisville was sold in June for an estimated $66M, Hotel Management reports. At least one more property is expected to be sold by the end of the year with several more assets slated to be offloaded in early 2018.
"Looking ahead, we plan to extend this strategy to sell roughly $1.5B of real estate over the next three years, which we are confident will unlock additional shareholder value and drive the growth of our business," Hyatt President and CEO Mark S. Hoplamazian said in a statement.