Hyatt and Grupo Piñero Finalize Strategic Joint Venture, Adding the Bahia Principe Hotels & Resorts Brand to Hyatt’s Existing All-Inclusive Portfolio

Rhea-AI Summary

Hyatt Hotels (NYSE: H) has completed a 50/50 strategic joint venture with Grupo Piñero to manage Bahia Principe Hotels & Resorts properties. The deal adds 22 resorts with approximately 12,000 rooms to Hyatt's Inclusive Collection, including 21 Bahia Principe-branded properties across the Dominican Republic, Mexico, Jamaica, and Spain, plus the Cayo Levantado Resort.

The asset-light joint venture, headquartered in Palma de Mallorca, will be led by Bahia Principe's CEO Julio Pérez as CEO, with Grupo Piñero's Global CEO Encarna Piñero serving as Chairman of the Board. Hyatt's VP Hotel Finance, Izet Mahalbasic, will join as CFO. This expansion builds on Hyatt's all-inclusive growth strategy, which began in 2013 and expanded significantly with the Apple Leisure Group acquisition in 2021.

Positive

• Adds 12,000 rooms to Hyatt's portfolio through asset-light model
• Expands presence in key markets: Dominican Republic, Mexico, Jamaica, and Spain
• Strengthens all-inclusive offering with established European customer base
• Strategic 50/50 partnership structure minimizes capital requirements

Negative

• Integration costs and risks associated with merging operations
• World of Hyatt loyalty program integration timeline undefined

Insights

Financial Analyst

The Hyatt-Grupo Piñero joint venture represents a strategic expansion that adds 12,000 rooms across 22 resorts to Hyatt's portfolio. This asset-light 50/50 partnership significantly strengthens Hyatt's position in the lucrative all-inclusive market without requiring heavy capital investment. The deal enhances revenue diversification through exposure to European markets via Grupo Piñero's established customer base. The commitment to property renovations suggests potential for RevPAR growth and margin expansion. For investors, this transaction aligns with Hyatt's asset-light growth strategy while providing immediate scale in the high-margin all-inclusive segment. The partnership structure mitigates operational risks while capturing upside from brand expansion and loyalty program integration.

Market Research Analyst

This joint venture capitalizes on the rapidly growing all-inclusive resort market, particularly appealing to post-pandemic travelers seeking hassle-free vacation experiences. The addition of properties in prime Caribbean locations - Dominican Republic, Mexico and Jamaica - positions Hyatt to capture increasing demand from both North American and European travelers. The deal expands Hyatt's Inclusive Collection to over 140 properties globally, creating significant cross-selling opportunities through the World of Hyatt loyalty program. The timing is strategic, as the all-inclusive segment shows strong recovery and pricing power. The partnership structure allows rapid scaling while maintaining brand quality control - a important factor for long-term success in the premium hospitality segment.

Hospitality Industry Expert

The integration of Bahia Principe's portfolio marks a transformative move in the all-inclusive space, strengthening Hyatt's competitive position against major players like Marriott and Hilton. The deal's structure is particularly clever - it leverages Grupo Piñero's 50 years of operational expertise in the Caribbean while gaining access to their strong European distribution channels. The retention of key executives, including Bahia Principe's CEO Julio Pérez, ensures operational continuity. The commitment to property renovations indicates potential for upmarket repositioning and rate optimization. This strategic alliance demonstrates Hyatt's evolution from its traditional luxury hotel roots to a more diverse hospitality platform, particularly important as consumer preferences shift toward experiential, all-inclusive travel options.

Deal boosts Hyatt’s all-inclusive platform with more rooms and expanded portfolio, boosts the growth of Grupo Piñero’s hotel division and enhances ability to reach new guests in key markets

CHICAGO & PALMA DE MALLORCA, Spain--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) today announced the completion of an agreement for affiliates of Hyatt and Grupo Piñero to enter a long-term, asset-light strategic joint venture, headquartered in Palma de Mallorca, Spain, which will manage Bahia Principe Hotels & Resorts-branded properties and own the Bahia Principe brand. The 50/50 joint venture increases Hyatt’s all-inclusive portfolio giving guests and World of Hyatt members more opportunities to experience all-inclusive travel.

Cayo Levantado Resort | Dominican Republic (Photo: Business Wire)

The agreement brings 22 resorts totaling approximately 12,000 rooms, including 21 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. Grupo Piñero is the owner of the resorts managed by the joint venture and is committed to driving the continuous improvement of Bahia Principe hotels through renovation projects as part of its ongoing goals and this transaction. Building on Grupo Piñero’s all-inclusive expertise and thriving European customer base, Hyatt will further contribute to the company’s success and provide expanded opportunities for growth with travelers in the Americas and other key markets.

Bahia Principe’s Chief Executive Officer Julio Pérez assumes leadership of the joint venture, with Grupo Piñero’s current Global Chief Executive Officer Encarna Piñero serving as Chairman of the Board. Izet Mahalbasic, Vice President Hotel Finance for Hyatt, will join the joint venture as Chief Financial Officer.

“This joint venture with Grupo Piñero enhances Hyatt’s all-inclusive platform across multiple dimensions: more rooms, an expanded portfolio and more offerings on more stay occasions for guests and World of Hyatt members,” said Mark Hoplamazian, President and Chief Executive Officer, Hyatt. “Grupo Piñero has built an exceptional family legacy over the past 50 years, and together we look forward to driving sustainable growth and innovation within the all-inclusive space.”

“It is a great honor for Grupo Piñero to embark on this long-term alliance with Hyatt—a groundbreaking model for both companies that promises significant benefits and advancements for our respective strategies,” said Encarna Piñero, Global CEO of Grupo Piñero and Chairman of the Board. “We are confident that the combination of our decades of experience as leaders in the all-inclusive sector in the Caribbean and Hyatt’s extensive global all-inclusive platform and systems will drive success for our joint venture."

“I am excited to lead this strategic joint venture with Hyatt as we work to expand the Bahia Principe Hotels & Resorts brand,” shared Julio Pérez, CEO of Bahia Principe. “Together, we will leverage our strengths to offer an unparalleled all-inclusive experience that will attract travelers from around the world. This milestone marks an important step for our company, and I am confident that this collaboration will help us to continue raising the quality and service standards of the hospitality industry.”

This transaction builds on Hyatt’s growth journey in all-inclusive, which started with the creation of the Hyatt Ziva and Hyatt Zilara brands in 2013 and combined with the largest acquisition in Hyatt’s history with Apple Leisure Group in 2021, expanded to more than 140 properties globally across 10 brands in Hyatt’s Inclusive Collection by the end of 2024.

Details regarding when and how Bahia Principe Hotels & Resorts will participate in the World of Hyatt loyalty program will be shared at a later date.

The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of September 30, 2024, the Company's portfolio included more than 1,350 hotels and all-inclusive properties in 79 countries across six continents. The Company's offering includes brands in the Luxury Portfolio, including Park Hyatt®, Alila®, Miraval®, Impression by Secrets, and The Unbound Collection by Hyatt®; the Lifestyle Portfolio, including Andaz®, Thompson Hotels®, The Standard®, Dream® Hotels, The StandardX, Breathless Resorts & Spas®, JdV by Hyatt®, Bunkhouse® Hotels, and me and all hotels; the Inclusive Portfolio, including Zoëtry® Wellness & Spa Resorts, Hyatt Ziva®, Hyatt Zilara®, Secrets® Resorts & Spas, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Sunscape® Resorts & Spas, and Alua Hotels & Resorts®; the Classics Portfolio, including Grand Hyatt®, Hyatt Regency®, Destination by Hyatt®, Hyatt Centric®, Hyatt Vacation Club®, and Hyatt®; and the Essentials Portfolio, including Caption by Hyatt®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

About Grupo Piñero

Grupo Piñero is a Spanish tourism group founded in 1975 by Pablo Piñero. Currently chaired by Isabel García Lorca and led since 2017 by Encarna Piñero, as Global CEO, together with her sisters Isabel, Chief Sustainability Officer and Lydia, chair of the Investment Committee. With almost 50 years of history, the Group carries out responsible management with a strategic plan whose transversal axis is sustainability. The main objective of this vision is to care for people, the environment and the promotion of tourism that generates wealth while based on respect for the destinations where it operates.

Its activity includes four divisions: the Hotel business, which has resorts in the Dominican Republic (first hotel group with the largest number of owned establishments), Mexico, Jamaica and Spain; the Real Estate and Golf business, with residential complexes in the Dominican Republic and Mexico; the Tour Operator division, comprising Soltour, the leading independent tour operator in Spain and Portugal in the holiday segment, and the Mobility Incoming & Leisure division, which includes Coming2, the perfect destination host that complements the offer through land and maritime transport services, highlighting its commitment to sustainable mobility. Today, Grupo Piñero has more than 15,000 employees in Spain, Portugal, Dominican Republic, Mexico, Jamaica, Switzerland, USA, Argentina and Luxemburg.

For more information: www.grupo-pinero.com

Forward-Looking Statements

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable when made, are inherently uncertain, and are subject to numerous assumptions and uncertainties, many of which are outside of Hyatt’s control, which could cause actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Forward-looking statements made in this press release are made only as of the date of their initial publication and neither party undertakes an obligation to publicly update any of these forward looking statements as actual events unfold, except to the extent required by applicable law. If one or more forward-looking statements is updated, no inference should be drawn that any additional updates will be made with respect to those or other forward-looking statements.

HHC-FIN

View source version on businesswire.com: https://www.businesswire.com/news/home/20241227750531/en/

MEDIA CONTACTS:

Hyatt

Robert Martinez

robert.martinez1@hyatt.com

Grupo Piñero

Patricia Reina

preina@grupo-pinero.com

Khy Labri

klabri@llyc.global

INVESTOR CONTACTS:

Adam Rohman

adam.rohman@hyatt.com

Ryan Nuckols

ryan.nuckols@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

How many properties did Hyatt (H) acquire through the Bahia Principe joint venture?

Hyatt acquired management rights to 22 resorts totaling approximately 12,000 rooms, including 21 Bahia Principe-branded properties and the Cayo Levantado Resort.

What is the ownership structure of the Hyatt-Grupo Piñero joint venture?

The joint venture is a 50/50 partnership between Hyatt and Grupo Piñero, with Grupo Piñero remaining the owner of the physical resort properties.

When will Bahia Principe hotels join the World of Hyatt loyalty program?

The specific timeline for Bahia Principe Hotels & Resorts' integration into the World of Hyatt loyalty program has not been announced and will be shared at a later date.

Who will lead the new Hyatt-Bahia Principe joint venture?

The joint venture will be led by Julio Pérez as CEO, Encarna Piñero as Chairman of the Board, and Izet Mahalbasic as CFO.

In which countries are the newly added Bahia Principe resorts located?

The Bahia Principe resorts are located across the Dominican Republic, Mexico, Jamaica, and Spain.