Inclusive Collection’s Coll likes all the noise

CHICAGO – Javier Coll would love to have the luxury all-inclusive space to himself in his role as Hyatt Hotel Corp.’s group president global business development & innovation for the Inclusive Collection, which has united Hyatt and AMR Collection all-inclusive portfolios, but all the relatively new and big players coming into the once cheap, mass tourism space does not seem to bother him much at all. In fact, it is bringing new developers to the table to learn more about what he calls an almost crisis-proof business model that has managed well during almost every difficult economic period.

“It took these big companies a while to get into this business, and it has served to increase all-inclusive’s exposure and noise,” said Coll, whose Apple Leisure Group was acquired by Hyatt in November 2021. “We’ve gone through four or five crises and with our positioning in the luxury tier, we’ve always been resilient and now everyone is taking notice.”

The “noise” is revealing something Coll has known for a long time – that luxury all-inclusive is a 365-day-a-year business and in many cases producing 18% to 20% returns for owners. “Many of our owners were not hoteliers. They were in textile, industrials, or something else,” he said. “They found this way to diversify with us, and now for 80% to 85% of our owners it is their main business with four or five properties.”

What Coll said continues to separate what is now the Inclusive Collection from the field is its 20 years of experience in the segment and its unique platform B2B and B2C distribution platforms that includes products such as Apple Vacations. Now it also has Hyatt’s loyalty platform to drive additional business. “We have a lot of control over the [distribution] situation to the benefit of the owners. So, that’s where we invest because we know that’s our added value and an advantage versus other hotel management companies.”

Coll said their unique platform also helps gain trust from regional banks who do most of the lending in the segment, boldly adding, “I know that they’re not lending to other owners because they don’t have that track record we have.”

The Inclusive Collection pipeline stands at about 20 to 25 hotels, according to Coll and more deals are getting done as conversions today because of the high price of debt. The system now with 10 brands has close to 120 hotels open with another 11 upcoming, including the first Hyatt Vivid (adults only) property set for 2024 in Cancun. Its other new brand, Impression by Secrets, in May opened its second property at Isla Mujeres in Mexico.

Among the other highlights is the continued expansion of the Secrets brand across the Americas with Secrets Tides Punta Cana in the Dominican Republic, Secrets St. Lucia Resort & Spa, and Secrets Tulum Resort & Beach Club in Mexico. In Europe, Dreams Madeira Resort Spa & Marina is coming to Portugal, while Zoëtry Halkidiki, marks the first Zoetry-branded property in Greece.

Looking ahead, Coll said occupancy remains strong with rate starting to stabilize. He continues to like the potential for growth particularly in the Dominican Republic, Mexico and Jamaica, and calls Europe a great market for the Inclusive Collection, especially with what Hyatt can bring to the table to help close deals. He also hinted that the group is also analyzing some large transactions in Europe. “In Europe, we compete with efficiency in operations, but also investment in direct business,” he added.

Further afield, while it could take another 10 to 15 years, Coll also sees conversion opportunities in the Middle East (think Saudi Arabia), North Africa (Morocco and Egypt) and Asia Pacific. “We are selective and use certain filters such as airlift, labor access and financing when we consider new markets,” he added. “We want to make sure that when we get into these markets that we have all the ingredients to be successful from day one.”

While financing remains challenging, the near-term road forward will be through conversions. “This talk about recession – personally, I think is going to be more of a soft landing than anything else,” Coll said. “You see the growth in the job market, and then you’ll see interest rates eventually come down. They’re already stabilizing… Our main challenge, which I wouldn’t really call a challenge, is to keep growing in new destinations and reaching the milestones we have planned.”