Hyatt Hotels Corporation has just announced plans for a strategic joint venture with Grupo Piñero, which will see affiliates of both companies entering into a long-term asset-light strategic joint venture. This venture will be headquartered in Palma de Mallorca, Spain, and will manage Bahia Principe-branded hotels and resorts, as well as own the Bahia Principe brand.
The 50/50 joint venture is expected to expand Hyatt’s all-inclusive room portfolio by approximately 30%, adding a total of 23 resorts with over 12,000 rooms to Hyatt’s inclusive collection. These resorts are located across the Dominican Republic, Mexico, Jamaica, and Spain, including the exclusive Cayo Levantado resort in the Dominican Republic.
Upon closing, the majority of the proceeds from this transaction will be leveraged by Grupo Piñero to enhance existing Bahia Principe resorts. This strategic venture is anticipated to strengthen Hyatt’s position as a global leader in the all-inclusive space and boost the growth of Grupo Piñero’s hotel division, providing expanded opportunities with travelers in the Americas and other important markets.
Julio Pérez, the current CEO of Bahia Principe, is expected to be appointed as the CEO to lead the management company following the close, with Encarna Piñero, current Global CEO of Grupo Piñero, serving as the Chairman of the Board. The addition of Bahia Principe’s resorts to Hyatt’s inclusive collection is expected to enhance Hyatt’s all-inclusive offering, strengthening its leadership position with one of the largest collections of all-inclusive resorts in the world.
Hyatt’s portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents as of June 30, 2024. The company's offering includes various brands such as Park Hyatt, Grand Hyatt, Hyatt Regency, and many others.
The strategic joint venture is a significant move for both companies and is set to have a substantial impact on the all-inclusive hospitality sector, as well as provide new opportunities for both Hyatt and Grupo Piñero in key markets across the globe. As a result of these announcements, the company's shares have moved 1.2% on the market, and are now trading at a price of $156.41. Check out the company's full 8-K submission here.
