CHICAGO & PALMA DE MALLORCA, Spain - Hyatt Hotels Corporation (NYSE: NYSE:H) has finalized a strategic joint venture with Grupo Piñero, a Spanish tourism group, to manage Bahia Principe Hotels & Resorts properties and own the brand. The 50/50 partnership, based in Palma de Mallorca, Spain, will see Hyatt expand its all-inclusive offerings by including 22 resorts and approximately 12,000 rooms from the Bahia Principe brand into its Inclusive Collection.
The agreement, which encompasses 21 Bahia Principe-branded resorts across the Dominican Republic, Mexico, Jamaica, and Spain, as well as the exclusive Cayo Levantado Resort in the Dominican Republic, aims to provide more all-inclusive travel opportunities for guests and World of Hyatt members.
Julio Pérez, the CEO of Bahia Principe, will lead the joint venture, with Grupo Piñero’s Global CEO Encarna Piñero serving as Chairman of the Board. Izet Mahalbasic, Vice President Hotel Finance for Hyatt, will join as Chief Financial Officer.
Mark Hoplamazian, President and CEO of Hyatt, highlighted the joint venture's role in enhancing their all-inclusive platform by offering more rooms and diverse portfolio options. Encarna Piñero expressed confidence in the alliance's potential to leverage Hyatt’s global platform and Grupo Piñero’s all-inclusive expertise to achieve success.
Details regarding the integration of Bahia Principe Hotels & Resorts into the World of Hyatt loyalty program will be announced at a future date. This transaction is a continuation of Hyatt's growth in the all-inclusive segment, aiming to reach over 140 properties globally across 10 brands in Hyatt's Inclusive Collection by the end of 2024. With the stock trading near its 52-week high of $168.20, investors can access comprehensive valuation analysis and growth projections through InvestingPro's detailed research reports, available for over 1,400 US stocks. With the stock trading near its 52-week high of $168.20, investors can access comprehensive valuation analysis and growth projections through InvestingPro's detailed research reports, available for over 1,400 US stocks.
Details regarding the integration of Bahia Principe Hotels & Resorts into the World of Hyatt loyalty program will be announced at a future date. This transaction is a continuation of Hyatt's growth in the all-inclusive segment, aiming to reach over 140 properties globally across 10 brands in Hyatt’s Inclusive Collection by the end of 2024.
The information in this article is based on a press release statement.
In other recent news, Hyatt Hotels has been in exclusive negotiations with Playa Hotels & Resorts N.V. for a potential takeover valued at $1.2 billion. The company has also issued $600 million in senior notes, with plans to use the proceeds to repay its existing debt due in 2025. In addition, Hyatt disclosed potential changes in stock ownership, with Pritzker family stockholders considering the sale of up to 15,360,573 restricted shares in the public market.
Regarding analyst updates, Baird maintained a Neutral rating on Hyatt shares, with a consistent price target of $158.00, and acknowledged Hyatt's long-term licensing agreement with The Venetian Resort Las Vegas as a positive development. This agreement is expected to increase Hyatt's net unit growth by over 200 basis points.
These recent developments highlight Hyatt's strategic moves in the hospitality industry and its efforts to manage its capital structure. As always, investors are encouraged to keep an eye on these and other developments to understand their potential impact on Hyatt's operations and financial performance.
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