Hyatt Hotels has announced a 50-50 joint venture with Grupo Piñero, a Spanish tourism group, that will add 23 resorts to Hyatt’s all-inclusive portfolio. This deal, expected to close in the coming months, will increase Hyatt’s all-inclusive room count by about 30%. The agreement will also involve Hyatt managing Grupo Piñero’s Bahia Principe Hotels & Resorts brand, which has properties in popular vacation destinations like the Dominican Republic, Mexico, and Jamaica. Hyatt CEO Mark Hoplamazian sees the deal as strengthening the company’s position in the competitive all-inclusive resort space, especially in the four- to five-star category.
Grupo Piñero, a family-owned company founded in 1975, views the partnership with Hyatt as an opportunity to access the American market through Hyatt’s distribution network and loyalty program. The current CEO of Grupo Piñero, Julio Pérez, will lead the joint venture with Hyatt. This deal allows Grupo Piñero to accelerate its growth while maintaining its family business culture. The hotel real estate will remain with its current owners, who will use the proceeds from the deal to renovate and upgrade their properties. This joint venture marks a significant step for both companies in the all-inclusive resort industry.
The all-inclusive resort sector has been experiencing significant growth, with consumers increasingly drawn to the predictable pricing and experiences offered by these properties. Larger hotel chains like Marriott and Hilton have also been expanding their presence in the all-inclusive market. Hilton has grown its all-inclusive room footprint in the Caribbean and Latin America by over 75% since the pandemic. Marriott recently began managing its first luxury all-inclusive resort in the Dominican Republic and is planning to open a W Hotel all-inclusive in 2025. This trend highlights the demand for all-inclusive accommodations among travelers.
Hyatt’s approach to expanding its all-inclusive portfolio involves a capital-efficient model focused on brand and management fees, rather than purchasing properties outright. By partnering with Grupo Piñero, Hyatt can leverage the Spanish company’s expertise in the all-inclusive sector while gaining access to key vacation destinations in the Caribbean and Mexico. The deal aligns with Hyatt’s strategy to enhance its offerings in the upscale all-inclusive segment, where Bahia Principe operates. This joint venture will enhance Hyatt’s competitive position in the all-inclusive resort market.
Overall, the partnership between Hyatt Hotels and Grupo Piñero represents a significant milestone in the all-inclusive resort industry. Both companies stand to benefit from this collaboration, with Hyatt expanding its all-inclusive portfolio and Grupo Piñero gaining access to the American market and Hyatt’s loyalty program. As the demand for all-inclusive accommodations continues to grow, hotel chains are increasingly focusing on capturing a share of this market. The deal signals a strategic move by Hyatt to strengthen its presence in the all-inclusive sector and cater to the evolving preferences of travelers seeking personalized and seamless vacation experiences.
