JLL Hotels & Hospitality secures $620m for Hyatt Regency Orlando acquisition financing

JLL Hotels & Hospitality Group has successfully secured a substantial $620 million in acquisition financing for the Hyatt Regency Orlando, a prestigious AAA Four Diamond resort in Orlando, Florida. This financing, arranged through a floating-rate, five-year loan, was facilitated by prominent financial institutions including Wells Fargo, Bank of America, and Deutsche Bank. The transaction involved representing affiliates of RIDA Development Corporation and an Ares Management Real Estate fund, marking a significant milestone in the hospitality real estate sector.

Hyatt Regency Orlando: A Premier Destination

The Hyatt Regency Orlando, located at 9801 International Drive, boasts 1,641 keys and is renowned for its luxurious accommodations. The resort features guest rooms averaging 453 square feet and suites averaging 846 square feet, all equipped with upscale amenities such as marble-accented bathrooms, sleeper sofas, mini-fridges, and 65-inch streaming televisions. Guests can enjoy a range of facilities, including six dining options, a 24-hour fitness center, tennis courts, a spa, and an expansive outdoor pool.

In addition to its accommodation offerings, the resort stands out with 315,000 square feet of meeting and event space, including direct connections to the Orange County Convention Center (OCCC), the second-largest convention center in the United States. This strategic location enhances its appeal as a prime venue for large-scale events and conventions.

Proximity to Major Orlando Attractions

The Hyatt Regency Orlando’s location provides exceptional access to major Orlando attractions, including Walt Disney World and Universal Studios, both of which are less than a 15-minute drive away. The hotel is also situated near Universal Orlando’s upcoming Epic Universe, a 750-acre theme park set to open in 2025, further cementing the hotel’s significance in the Orlando hospitality market.

Key Players and Future Prospects

The acquisition financing deal was orchestrated by JLL’s Hotels & Hospitality team, led by Kevin Davis, the Americas CEO, Mike Huth, Managing Director, and Barnett Wu, Senior Director. Davis expressed satisfaction with the transaction, highlighting the collaborative effort with RIDA, Ares, and Hyatt, and the strategic vision for the future of the Orlando convention district.

Hyatt’s Strategic Capital Allocation

In a related development, Hyatt Hotels Corporation has finalized the sale of the Hyatt Regency Orlando for approximately $1.07 billion, marking a key step in its capital allocation strategy. The sale, executed by an affiliate of Hyatt, includes the 1,641-room hotel and 45 adjacent acres, with RIDA Development Corporation and an Ares Management Real Estate fund as the buyers. Despite the sale, Hyatt will retain a long-term management agreement under the Hyatt Regency brand and has kept $265 million in non-controlling preferred equity, alongside providing $50 million in seller financing for the adjacent land.

This transaction is part of Hyatt’s broader strategy to transition towards an asset-light model, focusing on enhancing growth and profitability. Over the past three years, Hyatt has generated $2.6 billion in gross proceeds, exceeding its $2 billion asset-disposition target set in 2021, and achieving a 13.3x multiple on its investments.

JLL’s Industry-Leading Performance

JLL’s Hotels & Hospitality Group, a leader in global real estate advisory, has completed over $83 billion in transactions over the last five years. The group’s extensive global team, comprising 370 professionals across 20 countries, has also executed more than 7,350 advisory, valuation, and asset management assignments, solidifying its position as a top advisor in the hospitality real estate sector.