Hyatt is all-in on all-inclusive. The Chicago-based lodging company has announced plans to enter into a long-term, asset-light strategic joint venture with Spain’s Grupo Piñero, whereby it will manage all Bahia Principe-branded hotels and resorts and own the Bahia Principe brand outright. Terms of the deal were not disclosed.
Hyatt said that the 50/50 JV is expected to expand Hyatt’s all-inclusive room portfolio by approximately 30%. The deal, expected to close in the coming months, would add 23 resorts, totaling over 12,000 rooms, including 22 resorts under the Bahia Principe Hotels & Resorts brand located across the Dominican Republic, Mexico, Jamaica, and Spain, as well as the exclusive Cayo Levantado Resort in the Dominican Republic, to Hyatt’s Inclusive Collection.
Hyatt has been steadily accretive in the all-inclusive segment. In 2021, it acquired Apple Leisure Group from affiliates of KKR and KSL Capital Partners. At the time of the deal, Hyatt doubled its global resorts footprint through the addition of ALG’s AMR Collection brand portfolio, which comprised brands including Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas, Zoëtry Wellness & Spa Resorts, Alua Hotels & Resorts and Sunscape Resorts & Spas.
Grupo Piñero noted that “this strategic venture will build on the company’s longstanding success in all-inclusive hospitality with a robust European customer base and is expected to provide expanded opportunities with travelers in the Americas and other important markets.”
Once the transaction closes, Hyatt said it plans to keep Bahia Principe’s Julio Pérez as CEO, who will lead the management company. Grupo Piñero’s current global CEO Encarna Piñero will serve as chairman of the board with additional officers to be named at a later time.
A majority of the proceeds from this transaction will be leveraged by Grupo Piñero to enhance existing Bahia Principe resorts. a statement said.
“The addition of Bahia Principe’s resorts to Hyatt’s Inclusive Collection will enhance Hyatt’s all-inclusive offering and strengthen our leadership position with one of the largest collections of all-inclusive resorts in the world,” said Mark Hoplamazian, president and CEO of Hyatt. “Grupo Piñero’s family business culture, shared values, and expertise in the four- to five-star all-inclusive category coupled with Hyatt’s leadership in luxury all-inclusive creates powerful opportunities across Hyatt’s business – for guests and World of Hyatt members seeking quality all-inclusive experiences across stay occasions, and for hotel owners who can benefit from the network effect of more travelers within the portfolio.”
“For Grupo Piñero, the asset-light long-term strategic joint venture with Hyatt will strengthen Bahia Principe’s legacy and represents a clear path to build on its success and growth strategy for the future,” said Encarna Piñero, global CEO of Grupo Piñero. “Bahia Principe has experienced rapid growth since the opening of our first property in the Dominican Republic nearly 30 years ago. Throughout our journey, we have maintained our core beliefs as a family-owned business, always being faithful to our purpose of seeking to generate a positive social and economic impact for the local communities of the destinations in which we operate. We appreciate and recognize these values in Hyatt’s purpose of care and look forward to the next chapter in Bahia Principe’s bright future.”
Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program at a later date.
