Building upon its expansion in the all-inclusive segment, Hyatt Hotels Corporation H entered a long-term, asset-light strategic joint venture (JV) with Grupo Piñero. The partnership, headquartered in Palma de Mallorca, Spain, will oversee Bahia Principe Hotels & Resorts properties and own the Bahia Principe brand. This move enhances the company’s presence in the growing all-inclusive market.
The 50/50 joint venture broadens Hyatt’s portfolio, creating more opportunities for guests and World of Hyatt members to enjoy all-inclusive travel. This aligns with the company’s commitment to strengthening its offerings in this segment.
The agreement adds 22 resorts, totaling about 12,000 rooms, to Hyatt’s Inclusive Collection. This includes 21 Bahia Principe Hotels & Resorts across the Dominican Republic, Mexico, Jamaica and Spain, along with the exclusive Cayo Levantado Resort in the Dominican Republic. Grupo Piñero owns the resorts managed by the joint venture and will continue to improve Bahia Principe hotels through renovation projects. Hyatt will expand the company’s reach by leveraging Grupo Piñero’s expertise in all-inclusive and its strong European customer base.
This joint venture enhances Hyatt’s all-inclusive offerings, adding more rooms and a broader portfolio for guests. The partnership provides more options for World of Hyatt members to enjoy all-inclusive experiences. Hyatt looks forward to collaborating with Grupo Piñero to drive sustainable growth within the all-inclusive sector.
Hyatt’s all-inclusive strategy has grown significantly since the launch of the Hyatt Ziva and Hyatt Zilara brands in 2013. With the acquisition of Apple Leisure Group in 2021, Hyatt expanded its portfolio to more than 140 properties across 10 brands in its Inclusive Collection. By the end of 2024, this expansion will continue to strengthen the company’s position in the all-inclusive market.
Grupo Piñero views the long-term partnership with Hyatt as a significant step for both companies. The alliance combines Grupo Piñero’s decades of expertise in the Caribbean’s all-inclusive sector with Hyatt’s global platform and systems. This collaboration is expected to drive success and enhance the growth strategies of the JV.
The joint venture will work to expand the Bahia Principe Hotels & Resorts brand. By leveraging each company’s strengths, Hyatt and Grupo Piñero aim to provide a superior all-inclusive experience for travelers worldwide. This partnership marks an important milestone, with a focus on improving service quality and industry standards.
Hyatt's shares have gained 21.5% in the past year compared with the Zacks Hotels and Motels industry’s 25.8% growth. Although the company has underperformed the industry in the said period, it is poised to benefit from a gradual increase in demand, new hotel openings and acquisition initiatives. Also, organic and inorganic growth initiatives, loyalty programs and asset-light business models bode well.
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Looking beyond 2024, the company expects strong momentum across all group customer segments. Optimism is driven by group bookings and confidence in the ongoing recovery of business transient demand, along with steady leisure transient demand. For 2025, the group pace is up 6% compared with 2024, with the average rate contributing to more than half of the increase.
Hyatt currently carries a Zacks Rank #3 (Hold).
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