Affiliates of Hyatt Hotels Corp. and Grupo Piñero have entered 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 Hyatt’s all-inclusive room portfolio by approximately 30 percent.
For Grupo Piñero, this strategic venture will build on the company’s experience in all-inclusive hospitality with a European customer base and is expected to provide expanded opportunities with travelers in the Americas and other major markets.
The transaction is anticipated to close in the coming months subject to customary closing conditions. Hyatt plans to appoint Bahia Principe’s current Chief Executive Officer Julio Pérez as CEO to lead the management company following the close, with Grupo Piñero’s current Global CEO Encarna Piñero serving as Chairman of the Board and additional officers to be named at a later time.
The Details
Upon closing, 23 resorts with more than 12,000 rooms—including 22 resorts under the Bahia Principe Hotels & Resorts brand in the Dominican Republic, Mexico, Jamaica and Spain as well as the Cayo Levantado Resort in the Dominican Republic—will be added to Hyatt’s Inclusive Collection. A majority of the proceeds from this transaction will be leveraged by Grupo Piñero to enhance existing Bahia Principe resorts.
“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,” said Mark Hoplamazian, president and CEO of Hyatt, said in a statement. “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.”
“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,” said Encarna Piñero, Global CEO of Grupo Piñero. “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.”
Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program at a later date.