Hyatt Extends Lead in All-Inclusive Resorts With Latest Deal

29.10.2024 - 06:05 / skift.com / Mark Hoplamazian / Sean Oneill

Hyatt Hotels is joining forces with Spanish tourism group Grupo Piñero in a 50-50 joint venture that will add 23 resorts to Hyatt’s all-inclusive portfolio, the companies said Monday.

The deal is expected to close in the coming months, subject to the usual conditions. No financial terms were disclosed.

At a later date, Hyatt will begin managing Grupo Piñero’s Bahia Principe Hotels & Resorts brand, whose core assets span prime territory for U.S. vacationers seeking warm-weather getaways — the Dominican Republic, Mexico, and Jamaica.

The deal will expand Hyatt’s all-inclusive room count by 30%. Hyatt already runs the world’s largest grouping of upscale all-inclusive resorts, with over 120 properties, thanks to its $2.7 billion acquisition of Apple Leisure Group in 2021.

Hyatt CEO Mark Hoplamazian framed the deal as strengthening the company’s position in the competitive all-inclusive resort space, particularly in the four- to five-star category where Bahia Principe operates.

Rather than buying properties outright, Hyatt is pursuing a capital-efficient model focused on brand and management fees.

For the family-owned Grupo Piñero, founded in 1975, the partnership opens access to Hyatt’s powerful U.S. distribution network and bookings from members of Hyatt’s loyalty program.

The Spanish company’s current CEO Julio Pérez will lead the new joint venture. For Grupo Piñero, run by the second generation of the founding family with Encarna Piñero as Global CEO, the deal provides a path to accelerate growth while maintaining the company’s family business culture. The hotel real estate stays with its current owners, who will use the proceeds from this deal to renovate and upgrade them.

All-inclusive resorts have emerged as one of travel’s brightest spots, with consumers gravitating toward predictable pricing and experiences. Larger rivals Marriott and Hilton have also been looking to capture the growing segment of travelers seeking these resorts.

Hilton grew its all-inclusive room footprint in the Caribbean and Latin America by more than 75% since the pandemic.

Marriott began managing its first luxury all-inclusive — the Sanctuary Cap Cana in the Dominican Republic — in May 2022. It’s currently working on its first Ritz-Carlton all-inclusive resort. It’s planning a W Hotel all-inclusive to open in 2025 in the Dominican Republic.

You might think “asset-light” means “we don’t own stuff.” In Hyatt’s case, it means: “We don’t own hotels, except when we occasionally buy some so we can flip them at a profit and help fund our M&A.”

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