Hyatt Hotels Corp. has finalized its joint venture with Grupo Piñero, adding the Bahia Principe Hotels & Resorts brand and strengthening its all-inclusive portfolio. Affiliates of Hyatt and Grupo Piñero have completed an agreement, under which both the companies have entered a 50/50, asset-light strategic joint venture, which will manage Bahia Principe Hotels & Resorts-branded properties and own the Bahia Principe brand.
The 50/50 joint venture will be based in Spain’s Palma de Mallorca and add 22 resorts, totaling 12,000 rooms, to Hyatt’s Inclusive Collection, further expanding its all-inclusive offerings.
In October, Hyatt had announced plans of entering into the long-term JV with the Spanish company, which would help grow Hyatt’s all-inclusive room portfolio by approximately 30%.
The joint venture includes 21 Bahia Principe resorts across the Dominican Republic, Mexico, Jamaica and Spain; as well as the exclusive Cayo Levantado Resort in the Dominican Republic. Grupo Piñero, the owner of these resorts, will continue to renovate the properties, as part of its ongoing investment in the Bahia Principe brand.
Details on how Bahia Principe resorts will integrate with the World of Hyatt loyalty program will be announced in the future.
Hyatt said the partnership will provide its guests and World of Hyatt members with more all-inclusive travel options, particularly in the Americas and key international markets.
“This joint venture with Grupo Piñero enhances Hyatt’s all-inclusive platform across multiple dimensions: more rooms, an expanded portfolio and more offerings for guests and World of Hyatt members,” Mark Hoplamazian, president and CEO of Hyatt said in a release. “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.”
Julio Pérez, CEO of Bahia Principe, will lead the joint venture, while Encarna Piñero, global CEO of Grupo Piñero, will serve as chairman of the board. Izet Mahalbasic, vice president of Hotel Finance for Hyatt, will join the venture as chief financial officer.
“It is a great honor for Grupo Piñero to embark on this long-term alliance with Hyatt,” said Encarna Piñero. “We are confident that the combination of our decades of experience as leaders in the all-inclusive sector in the Caribbean, along with Hyatt’s extensive global platform, will drive success for our joint venture.”
The JV is part of Hyatt’s ongoing attempts to strengthen and enhance its all-inclusive segment. Earlier this week, Hyatt announced it had executed an exclusivity agreement with Playa Hotels & Resorts, under which Playa had agreed to negotiate potential strategic options that may include Hyatt’s acquisition of Playa. The exclusivity agreement will remain in place until February 3, 2025. Currently, Playa owns and/or manages 24 resorts in key markets across the Caribbean and Mexico and already works with Hyatt in managing eight all-inclusive resorts under Hyatt’s all-inclusive brands, Zilara and Ziva.
Hyatt’s JV with Grupo Piñero marks another step in Hyatt’s growth in the all-inclusive sector, following the launch of its Hyatt Ziva and Hyatt Zilara brands in 2013 and its acquisition of Apple Leisure Group in 2021. By the end of 2024, Hyatt’s Inclusive Collection is expected to exceed 140 properties globally across 10 brands.