(Bloomberg) -- Hyatt Hotels Corp. is nearing the sale of a sprawling property in Orlando, Florida, according to people with knowledge of the matter.
The lodging company is selling the Hyatt Regency Orlando to a joint-venture between Ares Management Corp. and Rida Development Corp., said the people, who requested anonymity to discuss confidential information. The deal values the hotel at more than $1 billion, one of the people said.
The buyers are seeking to finance the transaction in the market for commercial-mortgage backed securities, another of the people said.
A representative for Ares declined to comment. A Rida representative didn’t immediately respond to a request for comment.
A spokesperson for Hyatt said, “We do not have any news to share beyond what we shared in our second-quarter earnings.” In an Aug. 6 statement, the company said it expects to complete an asset sale by the end of August, meeting its commitment to offload $2 billion worth of real estate.
The Orlando hotel has 1,641 rooms and is linked to the Orange County Convention Center. It has 315,000 square feet (29,260 square meters) of meeting space and is near local attractions including Walt Disney World Resort and Universal Orlando.
Rida, headquartered in Houston, has partnered with Ares on more than $4 billion worth of investments across three continents, according to the company’s website. Rida was also the developer of the 1,400-room Hilton Orlando, near the Hyatt Regency.
Hyatt, led by Chief Executive Officer Mark Hoplamazian, has been selling real estate and buying hotel brands as it pursues an asset-light business model. In recent months, it has also sold the Park Hyatt Zurich and the Hyatt Regency Aruba Resort Spa and Casino.
©2024 Bloomberg L.P.