Grupo Piñero and Hyatt Hotels Corporation (NYSE:H) today announced their plan to create a long-term strategic alliance between subsidiaries of both companies, for the management of Bahia Principe Hotels & Resorts brand hotels under the 'asset-light' model.
The joint management company, owned 50% by the company, will be based in Palma de Mallorca and will own the Bahia Principe Hotels & Resorts brand.
A press release highlights that for Grupo Piñero, this strategic alliance will build on the success of its long track record in the 'all-inclusive' segment, in which it has a solid base of European customers, and expects it to provide more opportunities among North American travelers and those from other important markets.
For its part, the long-term strategic alliance is expected to increase Hyatt's 'all-inclusive' room portfolio by 30%, reinforcing its position as one of the leading global players in the 'all-inclusive' segment.
The transaction is expected to close in the coming months, subject to customary closing conditions. Hyatt will appoint Julio Pérez, current CEO of Bahia Principe Hotels & Resorts, as CEO of the joint management company, and Encarna Piñero, current global CEO of Grupo Piñero, as chair of the board of directors, with other positions to be announced later, according to the press release.
"Following the closing of the transaction, 23 resorts—22 from the Bahia Principe Hotels & Resorts brand and its exclusive Cayo Levantado Resort—totaling more than 12,000 rooms and located in Mexico, the Dominican Republic, Jamaica, and Spain, will be incorporated into Hyatt's Inclusive Collection. Grupo Piñero will use most of the proceeds from the transaction to renovate the Bahia Principe resorts," the report highlights.
For Encarna Piñero, Global CEO of Grupo Piñero, “this long-term alliance with Hyatt for asset-light management will reinforce Grupo Piñero’s legacy, representing a clear path forward for its growth. Bahia Principe Hotels & Resorts has experienced rapid expansion since opening its first property in the Dominican Republic 30 years ago. During this time, we have maintained our core values as a family business, remaining true to our purpose of generating a positive impact on the local communities in the destinations where we operate. We appreciate and recognize these same values in Hyatt’s purpose, and we look forward to taking the next step in Bahia Principe’s promising future.”.
“The addition of Bahia Principe resorts to Hyatt’s Inclusive Collection will enhance our all-inclusive offering and strengthen our leading position, with one of the world’s largest collections of resorts in this segment,” said Mark Hoplamazian, president and CEO of Hyatt.
He added: “Grupo Piñero’s family business culture, the values we share, and its experience in the four- and five-star all-inclusive category, combined with Hyatt’s leadership in luxury all-inclusive, will create new opportunities for all Hyatt stakeholders: from guests and World of Hyatt members seeking quality all-inclusive experiences, to hotel owners who will benefit from a network effect that will attract more travelers to their portfolios.”.
With a history spanning nearly 50 years, Grupo Piñero has established itself as a leader in the international tourism industry. Grupo Piñero's corporate culture aligns closely with Hyatt's values, purpose, and shared commitment to responsible business practices.
Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program soon.
The term "Hyatt" is used in this press release to refer to Hyatt Hotels Corporation and/or one or more of its subsidiaries.
Grupo Piñero is a Spanish family-owned tourism group founded in 1975 by Pablo Piñero. Currently chaired by Isabel García Lorca and led since 2017 by Encarna Piñero as Global CEO, along with her sisters Isabel, Chief Sustainability Officer, and Lydia, Chair of the Investment Committee. With nearly 50 years of history, the Group practices responsible management with a strategic plan centered on sustainability. This vision prioritizes the well-being of people and the environment, and promotes tourism that generates wealth while respecting the destinations where it operates.
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hotel company guided by its purpose: to care for people so they can be their best. As of June 30, 2024, the Company's portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across five continents.
Cover photo: Cayo Levantado Resort of the Piñero Group. (External source).
