Hyatt Hotels has finalised the sale of Hyatt Regency Orlando and an adjacent 45-acre land parcel in Florida, US, for $1.07bn.

The property has been sold to affiliates of RIDA Development Corporation and an Ares Management Real Estate fund.

This deal also includes a long-term management agreement to retain the Hyatt Regency branding.

It is part of Hyatt’s capital allocation strategy, which aims to transition to an asset-light business model.

The Hyatt Regency Orlando transaction surpasses the company’s $2bn asset-disposition commitment set in 2021.

Hyatt president and CEO Mark S Hoplamazian said: “The sale of Hyatt Regency Orlando represents the largest single-asset sale in Hyatt history.

“We are thrilled to be working with RIDA and Ares on this transaction, and in collaboration with these world-class developers, we will continue driving the success of Hyatt Regency Orlando and thoughtfully expand our brand footprint in the most-visited destination in the US with a new Grand Hyatt hotel.”

Hyatt Regency Orlando offers 1,641 rooms and 315,000ft² of event space.

Located near Orlando attractions, the hotel offers direct access to the Orange County Convention Center.

RIDA and Ares plan to invest further in the property, with a revamp planned for guestrooms and other amenities.

In addition, RIDA and Ares agreed with Hyatt to develop a new Grand Hyatt hotel on the adjacent land.

The planned Grand Hyatt Orlando is set to feature around 2,500 rooms and will be developed in phases, subject to necessary approvals.

The development is projected to create a combined offering of more than 4,000 rooms between the existing Hyatt Regency Orlando and the Grand Hyatt Orlando.

It follows Hyatt’s recent announcement of a renovation and rebranding initiative at Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch in Arizona.

This initiative will transform the property into the Grand Hyatt Scottsdale Resort.