Originally Posted by
bcosinteno
Yes. My theory is they will purchase Playa, sell off the real estate assets for a profit with 30 year management contacts and use the capital to do another acquisition. This has been Hyatt’s MO for some time and likely will continue to be.
If you can sell off real estate assets "for a profit", then Playa should be doing it themselves. But the longer the management contract, the less valuable the property. (unless you are locking in below-market management fees, which I would doubt)
"Use the capital for another acquisition"? If there's capital available they don't need to tie it up in Playa - just partner with a real estate hedge fund and save your capital for that "another acquisition"