Hyatt Hotels Announces Strategic Joint Venture with Grupo Piñero to Expand Bahia Principe Brand

Hyatt Hotels Corporation (NYSE: H) has recently disclosed plans for a long-term strategic joint venture with affiliates of Grupo Piñero, aimed at managing Bahia Principe-branded hotels and resorts. The agreement, to be headquartered in Palma de Mallorca, Spain, is set to enhance Hyatt’s position as a key player in the global all-inclusive hospitality sector.

This joint venture is expected to significantly bolster Hyatt’s all-inclusive room portfolio by approximately 30%, further solidifying its standing as one of the leading providers of all-inclusive offerings worldwide. As part of the agreement, an affiliate of Hyatt will be investing €359 million at closing for a 50% stake in the joint venture, with an additional €60 million expected upon the fulfillment of specific conditions.

The venture will see the addition of 23 resorts, comprising over 12,000 rooms, including 22 Bahia Principe Hotels & Resorts locations in the Dominican Republic, Mexico, Jamaica, and Spain, as well as the exclusive Cayo Levantado Resort in the Dominican Republic, to Hyatt’s Inclusive Collection. The funds generated from the transaction are planned to be utilized by Grupo Piñero for the renovation of existing Bahia Principe resorts.

After the closure of the transaction, the financial results of the joint venture will be consolidated into Hyatt’s financial statements. It is projected that base and incentive management fees from hotel management will amount to €55 to €60 million in 2028, in addition to supplementary revenue and fees garnered from Hyatt platforms.

The completion of the transaction is subject to customary closing conditions and is anticipated to conclude in the approaching months. Further details regarding this development can be found in the full press release attached to the Form 8-K filing.

Hyatt CEO, Mark Hoplamazian, expressed his enthusiasm for the partnership, highlighting the mutual benefits that the venture is expected to bring, including expanding Hyatt’s all-inclusive offerings and strengthening the brand’s position in the market.

Throughout Grupo Piñero’s near 50-year history, they have solidified themselves as a prominent player in the tourism sector with a strong emphasis on sustainability and responsible business practices. The venture with Hyatt signifies a significant step for Grupo Piñero in furthering their growth strategy.

Both companies have cited their shared values and commitment to delivering exceptional guest experiences as a driving force behind this partnership. The venture is also expected to contribute towards creating a vast network that will cater to a wider array of travelers across various locations.

The joint venture is seen as a strategic move that aligns with the companies’ overarching goals of growth and excellence in the all-inclusive hospitality segment.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hyatt Hotels’s 8K filing here.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units.