Hyatt Hotels is shuffling its European property holdings, and planning a rebrand of one of its key hotels in Austria.
The international hotel group has revealed it has disposed of its ownership interest in the Andaz Vienna am Belvedere hotel, selling the asset to an open-ended investment fund for approximately EUR92 million. However, the 303 room hotel is not leaving the Hyatt stable. In the coming months, the property will be converted to the Hyatt Regency brand, under a franchise agreement that will see operator MHP Hotel am Schweizergarten GmbH continue to lease the building on a long term basis.
Sales in Austria and Spain
The disposal in Vienna comes shortly after it was revealed Hyatt has sold three hotels on the Spanish island of Tenerife. The Alua Tenerife, Alua Soul Orotava Valley and Alua Atlantica Golf Resort were sold to Spanish investment company Arcano Partners.
In Vienna, Hyatt owned the Andaz hotel in a joint venture with local group Signa Development Selection. The property was opened in 2019 as part of the Quartier Belvedere, to designs by architecture firm Renzo Piano. The 16 storey property features a rooftop bar, four restaurants and bars, plus capacious conference facilities.
Buyer Deka will add the hotel to its real estate fund, WestInvest InterSelect. Being the fund’s first asset in Vienna, it will support a broader geographical diversification of investment assets. Deka continues to actively manage the fund, and in January it sold the Jumeirah Port Soller Hotel & Spa out of the fund’s portfolio, agreeing a deal with buyer Dubai Holding. In that case, the decision to sell was down to the conclusion of the fund’s strategy to develop, extend and stabilise the investment. It originally acquired the site in 2007, as a development project.
As in Vienna, Hyatt will retain an interest in the Spanish hotels it has sold. There are plans to upgrade the Alua branded properties, which are currently ranked as four star accommodation, to create all-inclusive resorts which Hyatt will continue to manage. Hyatt acquired the hotels from Blantyre Capital in early 2025, paying what was reported at the time around EUR 120 million for the 1,050 room portfolio.
Actively Deploying Capital to Shape the Portfolio
Hyatt has continued to deploy capital to grow and shape its international hotel business, as it also works towards a stated goal of becoming a more asset-light group, comparable in structure to other large hotel brand groups such as Marriott and IHG. In 2025, the company set a target of more than 90% of earnings by 2027 being from asset-light hotels. This will require further disposals from its still significant hotel ownership interests.
Among recent major capital deployments was the acquisition by Hyatt of the Playa Hotels & Resorts business, a USD2.6 billion deal that was completed in the first half of 2025. The transaction included buying 14 owned resort assets, which were then sold, months later, to Tortuga Resorts in a USD2 billion deal. Back to back, Hyatt signed 50 year management agreements to continue to operate 13 of the 14 properties.
