Hyatt, Grupo Piñero align to grow Bahia Principe brand

CHICAGO – Hyatt Hotels Corp. and Grupo Piñero are entering into a long-term, asset-light strategic joint venture, headquartered in Palma de Mallorca, Spain, which will manage 23 Bahia Principe-branded, all-inclusive 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%.

A majority of the proceeds from this transaction will be leveraged by Grupo Piñero to enhance existing Bahia Principe resorts.

Hyatt plans to appoint Bahia Principe’s current Chief Executive Officer Julio Pérez as Chief Executive Officer to lead the management company following the close, with Grupo Piñero’s current Global Chief Executive Officer Encarna Piñero serving as Chairman of the Board and additional officers to be named at a later time.

Upon closing, 23 resorts, totaling over 12,000 rooms, including 22 resorts under the Bahia Principe Hotels & Resorts brand located across the Dominican Republic, Mexico, Jamaica, and Spain, as well as the exclusive Cayo Levantado Resort in the Dominican Republic will be added to Hyatt’s Inclusive Collection.

“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 Chief Executive Officer, Hyatt. “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.”

At the recent HICAP conference in Singapore, Hoplamazian said he was thrilled that Hyatt has its first all-inclusive development in Asia and called it “just the beginning.” “We have our largest bases in the Americas, Caribbean, Mexico and Central America, then Europe… The Middle East will be significant, and Asia has just begun," he said.

He added that all-inclusive is attractive, especially for families, for many reasons. “You're not sitting there constantly thinking about the ala carte charges that you're going to get or where your kids are going to roam around the property and get something to eat. It opens up an opportunity for parents or for couples to have peace of mind in a resort setting. So, I'm very excited about the future.”

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, according to 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.