3 weeks ago
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The Chicago-based Hyatt Hotels Corporation this week closed its US$2-billion sale of the Playa Hotels & Resorts real estate portfolio to Tortuga Resorts, but confirmed that in Jamaica, seven Hyatt properties will remain shuttered until late 2026 owing to damage from Hurricane Melissa.
The deal will see Hyatt retain long-term management contracts with the properties as part of the sale terms.
“Seven Hyatt properties in Jamaica are expected to remain closed until the fourth quarter of 2026,” stated Hyatt in its release to shareholders, explaining that it was due to hurricane damage in October.
The storm forced the evacuation of guests and staff from the resorts. Though no lives were lost, property damage left the hotels shuttered. The closures represent a hit to Jamaica’s tourism sector, which relies on all-inclusive resorts to drive visitor arrivals and foreign exchange earnings. Hyatt has provided financial assistance to affected employees through the Hyatt Care Fund and direct support, but the absence of operational properties will likely weigh on local communities dependent on tourism jobs and supply chains.
Overall, Hyatt’s portfolio includes more than 1,450 hotels and all-inclusive properties in 82 countries across six continents.
The portfolio deal was divested in stages. Originally, it spanned 15 all-inclusive resorts across Mexico, the Dominican Republic, and Jamaica. Hyatt sold one property in September 2025 for US$22 million before finalising the Tortuga deal in December. The agreement includes 50-year management contracts for 13 of the 14 properties, ensuring Hyatt continues to operate the resorts even without owning the underlying real estate.
Said Javier Águila, president of Inclusive Collection at Hyatt: “With this transaction, we’ve secured long-term management agreements for a portfolio of exceptional resorts that reflect our commitment to excellence.” For Tortuga, the acquisition marks its emergence as a major player in beachfront hospitality. CEO Leo Schlesinger described the deal as “a defining moment” that establishes Tortuga as a scaled platform across Mexico and the Caribbean.
The deal strengthens Hyatt’s cash flow and frees up its capital. Proceeds will be used to repay debt tied to the Playa acquisition, with Hyatt expecting leverage to remain consistent with investment-grade thresholds. The company also retained US$200 million in preferred equity in Tortuga and could earn an additional US$143 million if performance targets are met.
“Proceeds from the real estate 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,” stated the release.
Analysts note that the asset-light model allows Hyatt to focus on brand management and guest experience, while partners like Tortuga shoulder the capital burden of property ownership. Yet in Jamaica, the immediate concern is not balance sheet optimisation, but the absence of marquee resorts during a critical recovery period.
Hyatt’s governance of the Inclusive Collection remains intact, and Tortuga has pledged to work closely with brand partners and property teams to “unlock new opportunities for growth”. But for Jamaica, the next 12 months will be defined by rebuilding. The reopening of Hyatt’s resorts in late 2026 will be a litmus test for resilience — not only of the properties themselves, but of the island’s broader tourism economy.
As Águila put it, the transaction reflects “strong cultural alignment grounded in care”. For Jamaica, that care will be measured by how quickly shuttered resorts return to life, restoring jobs, visitor flows, and confidence in one of the Caribbean’s most vital industries.
English (US) ·