Strategic joint venture will strengthen Hyatt’s
position as a global leader in the all-inclusive space and boost
the growth of Grupo Piñero's hotel division and its ability to
reach new clients in key markets
Hyatt Hotels Corporation (NYSE: H) today announced plans for
affiliates of Hyatt and Grupo Piñero to enter 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% and enhance Hyatt’s position as one of the
leading providers of all-inclusive offerings across the world.
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Bahia Principe Grand El Portillo,
Dominican Republic. (Credit: Grupo Piñero)
For Grupo Piñero, this strategic venture will build on the
company’s longstanding 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.
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
Chief Executive Officer to lead the management company following
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. 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 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.”
“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.”
With a history of almost 50 years, Grupo Piñero has established
itself as a benchmark in the tourism industry internationally.
Grupo Piñero’s company culture aligns closely with Hyatt’s values,
purpose, and a shared commitment to responsible business.
Bahia Principe Hotels & Resorts is expected to join the
World of Hyatt loyalty program at a later date.
The term “Hyatt” is used in this release for convenience to
refer to Hyatt Hotels Corporation and/or one or more of its
affiliates.
About Hyatt Hotels
Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading
global hospitality company guided by its purpose – to care for
people so they can be their best. As of June 30, 2024, the
Company’s portfolio included more than 1,350 hotels and
all-inclusive properties in 78 countries across six continents. The
Company's offering includes brands in the Timeless Collection,
including Park Hyatt®, Grand Hyatt®, Hyatt
Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt
Place®, Hyatt House®, Hyatt Studios, and
UrCove; the Boundless Collection, including Miraval®,
Alila®, Andaz®, Thompson Hotels®, Dream®
Hotels, Hyatt Centric®, and Caption by Hyatt®;
the Independent Collection, including The Unbound Collection by
Hyatt®, Destination by Hyatt®, and JdV by Hyatt®;
and the Inclusive Collection, including Impression by
Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry®
Wellness & Spa Resorts, Secrets® Resorts & Spas,
Breathless Resorts & Spas®, Dreams® Resorts &
Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels
& Resorts®, and Sunscape® Resorts & Spas.
Subsidiaries of the Company operate the World of Hyatt® loyalty
program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation
Club®, Amstar DMC destination management services, and Trisept
Solutions® technology services. For more information, please visit
www.hyatt.com.
About Grupo Piñero
Grupo Piñero is a Spanish tourism group founded in 1975 by Pablo
Piñero. Currently chaired by Isabel García Lorca and led since 2017
by Encarna Piñero, as Global CEO, together with her sisters Isabel,
Chief Sustainability Officer and Lydia, chair of the Investment
Committee. With almost 50 years of history, the Group carries out
responsible management with a strategic plan whose transversal axis
is sustainability. The main objective of this vision is to care for
people, the environment and the promotion of tourism that generates
wealth while based on respect for the destinations where it
operates.
Its activity includes four divisions: the Hotel business, which
has resorts in the Dominican Republic (first hotel group with the
largest number of owned establishments), Mexico, Jamaica and Spain;
the Real Estate and Golf business, with residential complexes in
the Dominican Republic and Mexico; the Tour Operator division,
comprising Soltour, the leading independent tour operator in Spain
and Portugal in the holiday segment, and the Mobility Incoming
& Leisure division, which includes Coming2, the perfect
destination host that complements the offer through land and
maritime transport services, highlighting its commitment to
sustainable mobility. Today, Grupo Piñero has more than 15,000
employees in Spain, Portugal, Dominican Republic, Mexico, Jamaica,
Switzerland, USA, Argentina and Luxemburg.
For more information: www.grupo-pinero.com
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements include statements about the Company’s proposed
strategic joint venture transaction, the expected timeline for
completing the transaction and leadership of the management company
in connection with the transaction, the development pipeline
related to the transaction, strategies, outlook, prospects or
future events and involve known and unknown risks that are
difficult to predict. As a result, our actual results, performance
or achievements may differ materially from those expressed or
implied by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as
"may," "could," "expect," "intend," "plan," "seek," "anticipate,"
"believe," "estimate," "predict," "potential," "continue,"
"likely," "will," "would" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by us
and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: general economic uncertainty in
key global markets and a worsening of global economic conditions or
low levels of economic growth; the rate and pace of economic
recovery following economic downturns; global supply chain
constraints and interruptions, rising costs of construction-related
labor and materials, and increases in costs due to inflation or
other factors that may not be fully offset by increases in revenues
in our business; risks affecting the luxury, resort, and
all-inclusive lodging segments; levels of spending in business,
leisure, and group segments, as well as consumer confidence;
declines in occupancy and average daily rate; limited visibility
with respect to future bookings; loss of key personnel; domestic
and international political and geopolitical conditions, including
political or civil unrest or changes in trade policy; hostilities,
or fear of hostilities, including future terrorist attacks, that
affect travel; travel-related accidents; natural or man-made
disasters, weather and climate-related events, such as earthquakes,
tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil
spills, nuclear incidents, and global outbreaks of pandemics or
contagious diseases, or fear of such outbreaks; our ability to
successfully achieve certain levels of operating profits at hotels
that have performance tests or guarantees in favor of our
third-party owners; the impact of hotel renovations and
redevelopments; risks associated with our capital allocation plans,
share repurchase program, and dividend payments, including a
reduction in, or elimination or suspension of, repurchase activity
or dividend payments; the seasonal and cyclical nature of the real
estate and hospitality businesses; changes in distribution
arrangements, such as through internet travel intermediaries;
changes in the tastes and preferences of our customers;
relationships with colleagues and labor unions and changes in labor
laws; the financial condition of, and our relationships with,
third-party owners, franchisees, and hospitality venture partners;
the possible inability of third-party owners, franchisees, or
development partners to access the capital necessary to fund
current operations or implement our plans for growth; risks
associated with potential acquisitions and dispositions and our
ability to successfully integrate completed acquisitions with
existing operations; failure to successfully complete proposed
transactions (including the failure to satisfy closing conditions
or obtain required approvals); our ability to successfully execute
our strategy to expand our management and hotels services and
franchising business while at the same time reducing our real
estate asset base within targeted timeframes and at expected
values; our ability to maintain effective internal control over
financial reporting and disclosure controls and procedures;
declines in the value of our real estate assets; unforeseen
terminations of our management and hotels services or franchise
agreements; changes in federal, state, local, or foreign tax law;
increases in interest rates, wages, and other operating costs;
foreign exchange rate fluctuations or currency restructurings;
risks associated with the introduction of new brand concepts,
including lack of acceptance of new brands or innovation; general
volatility of the capital markets and our ability to access such
markets; changes in the competitive environment in our industry,
industry consolidation, and the markets where we operate; our
ability to successfully grow the World of Hyatt loyalty program and
Unlimited Vacation Club paid membership program; cyber incidents
and information technology failures; outcomes of legal or
administrative proceedings; and violations of regulations or laws
related to our franchising business and licensing businesses and
our international operations; and other risks discussed in the
Company's filings with the SEC, including our annual reports on
Form 10-K and quarterly reports on Form 10-Q, which filings are
available from the SEC. All forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the cautionary statements set forth above. We
caution you not to place undue reliance on any forward-looking
statements, which are made only as of the date of this press
release. We do not undertake or assume any obligation to update
publicly any of these forward-looking statements to reflect actual
results, new information or future events, changes in assumptions
or changes in other factors affecting forward-looking statements,
except to the extent required by applicable law. If we update one
or more forward-looking statements, no inference should be drawn
that we will make additional updates with respect to those or other
forward-looking statements.
HHC-FIN
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version on businesswire.com: https://www.businesswire.com/news/home/20241028228577/en/
MEDIA CONTACTS: Hyatt Robert Martinez
robert.martinez1@hyatt.com
Grupo Piñero Patricia Reina preina@grupo-pinero.com
Yndira Marin yndira.marin@llyc.global
INVESTOR CONTACTS: Adam Rohman adam.rohman@hyatt.com
Ryan Nuckols ryan.nuckols@hyatt.com
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