Hyatt Hotels: Joint Venture with Bahia Principe, Big Expansion

Hyatt Hotels Corporation and Grupo Piñero have entered into a strategic long-term agreement for the management of Bahia Principe Hotels & Resorts. The deal includes a 50% stake in the hotel management, making Hyatt a joint owner. The new management company will be based in Palma de Mallorca and will operate under the Bahia Principe Hotels & Resorts brand.

This partnership is expected to increase North American and other key market visitors to Grupo Piñero's properties, leveraging Hyatt's well-established brand. Additionally, the Spanish firm anticipates that this alliance will boost Hyatt's 'all-inclusive' room portfolio by 30%, reinforcing its position as a leading global player in the 'all-inclusive' segment.

The transaction is set to be finalized in the coming months, subject to standard closing conditions. Julio Pérez, the current CEO of Bahia Principe Hotels & Resorts, will be appointed as the CEO of the joint management company, while Encarna Piñero, the current global CEO of Grupo Piñero, will serve as the chairwoman of the board of directors. Further appointments will be announced in due course.

Upon completion of the deal, 23 resorts — 22 under the Bahia Principe Hotels & Resorts brand and the exclusive Cayo Levantado Resort — will join Hyatt's Inclusive Collection. These properties, totaling over 12,000 rooms, are located in Mexico, the Dominican Republic, Jamaica, and Spain.

Grupo Piñero plans to use the majority of the funds generated from the transaction to renovate Bahia Principe resorts. Encarna Piñero, CEO of Grupo Piñero, commented on the partnership, stating that both companies share the same values of creating a positive impact on local communities. She expressed her excitement for the next steps in their journey.

Mark Hoplamazian, President and CEO of Hyatt, also shared his enthusiasm about the addition of Bahia Principe resorts to Hyatt's Inclusive Collection. He believes that this will enhance their 'all-inclusive' offering and strengthen their leadership position in this segment globally.

In addition, Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program in the near future.