Strategic joint venture will strengthen Hyattās position as a global leader in the all-inclusive space and boost the growth of Grupo PiƱeroās hotel division and its ability to reach new clients in key markets.
CHICAGO, & PALMA DE MALLORCA, SpaināHyatt Hotels CorporationĀ today announced plans for affiliates of Hyatt and Grupo PiƱeroĀ to enter into a long-term asset-light strategic joint venture, headquartered in Palma de Mallorca, Spain, which will manage Bahia Principe-branded hotels and resorts and own the Bahia Principe brand. The 50/50 joint venture is expected to expand Hyattās all-inclusive room portfolio by approximately 30% and enhance Hyattās position as one of the leading providers of all-inclusive offerings across the world.
For Grupo PiƱero, this strategic venture will build on the companyās 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.
The transaction is anticipated to close in the coming months subject to customary closing conditions. Hyatt plans to appoint Bahia Principeās current Chief Executive Officer Julio PĆ©rez as Chief Executive Officer to lead the management company following close, with Grupo PiƱeroās current Global Chief Executive Officer Encarna PiƱero serving as Chairman of the Board and additional officers to be named at a later time.
Upon closing, 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 will be added to Hyattās Inclusive Collection. A majority of the proceeds from this transaction will be leveraged by Grupo PiƱero to enhance existing Bahia Principe resorts.
āThe addition of Bahia Principeās resorts to Hyattās Inclusive Collection will enhance Hyattās all-inclusive offering and strengthen our leadership position with one of the largest collections of all-inclusive resorts in the world,ā said Mark Hoplamazian, President and Chief Executive Officer, Hyatt. āGrupo PiƱeroās family business culture, shared values, and expertise in the four- to five-star all-inclusive category coupled with Hyattās leadership in luxury all-inclusive creates powerful opportunities across Hyattās business ā 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.ā
āFor Grupo PiƱero, the asset-light long-term strategic joint venture with Hyatt will strengthen Bahia Principeās legacy and represents a clear path to build on its success and growth strategy for the future,ā said Encarna PiƱero, Global CEO of Grupo PiƱero. āBahia 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 Hyattās purpose of care and look forward to the next chapter in Bahia Principeās bright future.ā
With a history of almost 50 years, Grupo PiƱero has established itself as a benchmark in the tourism industry internationally. Grupo PiƱeroās company culture aligns closely with Hyattās values, purpose, and a shared commitment to responsible business.
Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program at a later date.
The term āHyattā is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.