Hyatt Hotels Corporation on Wednesday revealed that Hurricane Melissa damage will keep seven Jamaica properties closed until late 2026, negatively impacting its financial outlook.

The Chicago-headquartered hotel operator disclosed the hurricane’s impact while announcing the completion of its $2 billion sale of Playa Hotel and Resorts’ owned real estate portfolio to Tortuga Resorts. Hyatt said the transaction demonstrates its commitment to an asset-light business model.

According to an 8-K filing with the US Securities and Exchange Commission, Hyatt is reducing its 2025 Adjusted EBITDA outlook for Playa by US$10 million at the mid-point of the range due to hurricane damage from the October 28 storm. Additionally, the company now expects its full-year 2025 Adjusted EBITDA, excluding Playa, to be at the low end of the previously projected $1.09 billion, compared to $1.110 billion range, due to weaker performance from cancellations in Jamaica.

Hurricane Melissa struck Jamaica in October 2025, causing extensive property damage to various Hyatt-owned properties. While all guests and colleagues were safely evacuated with no loss of life, the company has provided financial assistance to affected staff through various support mechanisms.

In November 2025, Hyatt suspended operations and paused reservations at eight resorts in Jamaica. However, at the time, the company said it would begin accepting new bookings for February 2026 and beyond.  

As part of the Tortuga transaction, Hyatt has entered into 50-year management agreements for 13 of the 14 properties it divested. The company can achieve up to an additional $143 million earnout if certain operating thresholds are met, and has retained $200 million of preferred equity in Tortuga.

Funds generated from the sale will be used to repay a draw term loan that financed the Playa acquisition.