Hyatt has really been expanding in the all-inclusive space. The hotel company has today announced a deal that will see its all-inclusive portfolio grow by around 30%.
In this post:
Hyatt & Grupo Piñero launch all-inclusive joint venture
Hyatt and Grupo Piñero are entering into a long-term, asset-light, 50/50 strategic joint venture based in Palm de Mallorca, Spain. With this, we’ll see the joint venture manage Bahia Principe-branded hotels and resorts, and own the Bahia Principle brand.
The transaction is expected to close in the coming months, though the financial details of the deal aren’t being made public. When the deal closes, Bahia Principe’s current CEO is expected to lead the new management company.
Upon closing, 23 resorts with over 12,000 rooms will be joining Hyatt’s portfolio. These Bahia Principe Hotels & Resorts properties are located in the Dominican Republic, Mexico, Jamaica, and Spain. The deal also includes Cayo Levantado Resort in the Dominican Republic. All of these properties will be added to Hyatt’s Inclusive Collection.
We can expect that Bahia Principle properties will join World of Hyatt, meaning members can earn and redeem points, and take advantage of elite perks. However, the timing of that remains to be seen.
This will expand Hyatt’s all-inclusive room portfolio by around 30%, and enhance Hyatt’s position as one of the leading providers of all-inclusive offerings across the world. Money from this deal will reportedly be used to “enhance existing Bahia Principe resorts.”
For Grupo Piñero, this joint venture will build on the company’s 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.
Here’s how Hyatt CEO Mark Hoplamazian describes this deal:
“The addition of Bahia Principe’s resorts to Hyatt’s Inclusive Collection will enhance Hyatt’s all-inclusive offering and strengthen our leadership position with one of the largest collections of all-inclusive resorts in the world. Grupo Piñero’s family business culture, shared values, and expertise in the four- to five-star all-inclusive category coupled with Hyatt’s leadership in luxury all-inclusive creates powerful opportunities across Hyatt’s business – 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.”
Meanwhile here’s what Grupo Piñero CEO Encarna Piñero had to say about partnering with Hyatt:
“For Grupo Piñero, the asset-light long-term strategic joint venture with Hyatt will strengthen Bahia Principe’s legacy and represents a clear path to build on its success and growth strategy for the future. Bahia 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 Hyatt’s purpose of care and look forward to the next chapter in Bahia Principe’s bright future.”
This is great for those who like all-inclusive resorts
To Hyatt’s credit, it’s really impressive how the hotel group has grown in the all-inclusive sector in recent times. While Hyatt had a small number of all-inclusive properties going back several years, this growth really started when Hyatt acquired Apple Leisure Group in a $2.7 billion deal, adding over 100 all-inclusive resorts to Hyatt’s portfolio.
That momentum has continued since then, and the all-inclusive space continues to be a big focus for Hyatt, as is evident based on this latest joint venture. So for those who like all-inclusive properties, Hyatt really is becoming the brand to be loyal to.
Even beyond all-inclusive resorts, it seems like Hyatt is leaning heavily into the lifestyle and leisure crowd when it comes to growth, based on the recent acquisition of Dream Hotel Group, and Hyatt taking over Mr & Mrs Smith.
Even though all-inclusive resorts largely don’t appeal to me, I can still appreciate how this is exciting to many consumers, and it’s great for the loyalty program, in terms of creating redemption opportunities that many families value.
My only frustration, really, is that I feel like Hyatt’s growth in the leisure and all-inclusive sector is coming at the expense of growth in the more traditional luxury sector. It just feels like Hyatt’s luxury hotel footprint is growing at a glacial pace, and we’re not seeing many exciting announcements on that front.
Admittedly it’s a tough time for new hotel developments. Developers don’t have much appetite for newly built properties at the moment, given interest rates and general uncertainty. That’s why we’re seeing the major hotel groups lean so heavily into acquisition of existing brands, or conversion opportunities.
Bottom line
Hyatt is forming a joint venture with Grupo Piñero, to take over management of Bahia Principe all-inclusive resorts. This consists of 23 properties in the Caribbean and Europe, and expands Hyatt’s all-inclusive room count by around 30%.
More hotels options are a good thing, though all-inclusive properties like this tend to be quite polarizing. I’m all for more options for earning and redeeming points, I’m just kind of sad by the lack of other interesting openings.
What do you make of Bahia Principe joining World of Hyatt?
What will happen to the reward that have been earned by my bahia members is my only question. I just finally made gold status and bahia keeps your status forever. Hyatt however does not and you have to return points.
How are the Bahia Principe resorts? For AI, I've only ever stayed at Excellence/Finest properties.
Lets face the facts. Hyatt needs to grow, meaning more hotels and room count for Wall Street demands. It needs to catch up with Hilton and Marriott.
We all know what happens "usually" when growth comes before manageable control. With products-widgets, the quality usually falters, returns, customers move away from the product.
With Hyatt it will be interesting if they can maintain quality standards. Can they bring on new managerial staff to maintain Hyatt...
Lets face the facts. Hyatt needs to grow, meaning more hotels and room count for Wall Street demands. It needs to catch up with Hilton and Marriott.
We all know what happens "usually" when growth comes before manageable control. With products-widgets, the quality usually falters, returns, customers move away from the product.
With Hyatt it will be interesting if they can maintain quality standards. Can they bring on new managerial staff to maintain Hyatt standards?
Personally I visited Hyatt Grand Island in Cancun, a new all inclusive. It was so bad, I would not dare to visit another all inclusive resort. They lost me on the first go round.
Well...that property is towars the low end of the Hyatt AI portfolio. It is not even on the beach! You got what you paid for. You probably went there because it was new and because it was cheap $ or points. Next time dont be cheap and go to the new Secrets or Impressions. Will cost you 2-3 times more but will be 10 times better.
Kewl, more all inclusive properties......yet ZERO hotels in wide swaths of this country. Not a single Hyatt in so many places. Crazy.
I'm so excited about this! Absolutely love the Bahia Principe resorts in Mexico and really looking forward to earning/redeeming points and qualifying nights and leveraging globalist status. They are much more affordable compared to many of Hyatt's existing all-inclusive offerings, I hope that doesn't change too much.
I am intrigued by why Hyatt would assume management. That seems like a huge liability.
Hyatt should just officially announce it is ending development of new Hyatt Regency properties. It's like nobody wants to build one in North America.
Nobody wants to build them in North America because there is zero need to do so unless a city desperately wants one. There are plenty of convention hotels as it is and there has been a shift in demand. Wedding receptions and smaller corporate events have seen a shift away from being at generic hotel ballrooms and more towards non-hotel event spaces. Leisure travelers are much more exploratory for food/drink than they were 30 years...
Nobody wants to build them in North America because there is zero need to do so unless a city desperately wants one. There are plenty of convention hotels as it is and there has been a shift in demand. Wedding receptions and smaller corporate events have seen a shift away from being at generic hotel ballrooms and more towards non-hotel event spaces. Leisure travelers are much more exploratory for food/drink than they were 30 years ago, so a lot fewer want to spend their evening eating dinner at the generic hotel restaurant and then have drinks at the hotel bar. Most full-service hotel business traveler amenities have been replaced by technology - business center (your phone/laptop), printing/faxing/mail services (almost never needed on the road any longer), car service (Uber/Lyft/Blackcar), room service (Uber Eats), etc.
*unless a city desperately wants one and is willing to throw 8 figures of subsidy money to the project.
The problem with Hyatt all inclusives is that their points chart is based on two guests. If you have 4 people to a room, it doubles the number of points required. It provides great value for couples, bad value for families.
This. It's terrible value for families to use Hyatt points to book AI hotels.
Irrelevant at the adults only properties.
I can't say for all of them, but the Bahia Principe resorts in Mexico at least can be very inexpensive, especially during the low season. They often offer first child stay free. For example we just got back from 7 nights at Bahia Principe Luxury Akumal, 3 adults, 3 kids in two rooms, total cost for all including taxes and fees was less than $3,000. I'd be happy to pay that and get elite qualifying...
I can't say for all of them, but the Bahia Principe resorts in Mexico at least can be very inexpensive, especially during the low season. They often offer first child stay free. For example we just got back from 7 nights at Bahia Principe Luxury Akumal, 3 adults, 3 kids in two rooms, total cost for all including taxes and fees was less than $3,000. I'd be happy to pay that and get elite qualifying nights, globalist perks, and earn points instead of redeeming a ton of points.