Hyatt Hotels hopes to lure its faithful guests to all-inclusive resorts in the Dominican Republic, Mexico and Jamaica that will soon carry the Hyatt brand. The Dominican Hyatt branded facilities are expected to open in 2014 and 2015.
The company announced on 19 July that a wholly owned Hyatt subsidiary plans to enter the all-inclusive segment in partnership with Playa Hotels & Resorts B.V. (“Playa”). Playa was created with the goal of becoming a leading owner, operator and developer of all-inclusive resorts. Hyatt expects to invest a total of US$325 million, consisting of US$100 million for an approximate 20 percent ownership stake in Playa and US$225 million for convertible preferred stock in Playa.
Playa’s hotel portfolio will include 13 resorts totaling approximately 5,800 rooms across the Dominican Republic, Mexico and Jamaica. In connection with the Hyatt investment, Playa will enter into franchise agreements with Hyatt for six of the 13 resorts, or approximately 2,800 rooms, which will operate under Hyatt brands following the completion of significant renovations.
The company says that Playa will pursue the acquisition or development of new all-inclusive resort opportunities under Hyatt’s brands and it will also have certain rights to operate Hyatt-branded all-inclusive resorts in five Latin American and Caribbean countries on an exclusive basis through 2018.
“The all-inclusive segment has grown rapidly over the past 20 years,” said Stephen Haggerty, global head, real estate and capital strategy for Hyatt. “This transaction will position us to introduce Hyatt’s authentic hospitality to a new guest base, while offering great new resort options in sought-after destinations to our existing guests.