Hyatt closes sale of real estate portfolio from Playa Hotels

Hyatt (H) Hotels last night announced the closing of the sale of the real estate portfolio previously acquired from Playa Hotels & Resorts to Tortuga Resorts, for $2B. Hyatt can achieve up to an additional $143M earnout if certain operating thresholds are met and has retained $200M of preferred equity in Tortuga in connection with the transaction. Proceeds from the sale will be used to repay the delayed draw term loan that funded a portion of the Playa acquisition, and Hyatt expects pro forma net leverage to remain consistent with thresholds necessary to maintain its investment-grade credit profile.