CORAL GABLES, Florida — Experience is a game-changer when it comes to making deals, and Hyatt Hotels Corp. is banking on that as it looks to further grow its all-inclusive resorts portfolio.
In an interview at the Americas Lodging Investment Summit Caribbean and Latin America conference, María Zarraluqui, senior vice president, global growth and owner relations for Hyatt’s Inclusive Collection, said her company has been dynamic with its deals and transactions in the all-inclusive space.
Last June, Hyatt closed on the acquisition of Playa Hotels & Resorts. Prior to that, it had a large joint venture with Spain’s Grupo Piñero for the Bahia Principe Hotels & Resorts brand. The largest deal Hyatt made in the all-inclusive space was its 2021 acquisition of Apple Leisure Group.
The results of these deals and partnerships are the attraction of talent, good partners and strong results, Zarraluqui said.
“In addition, we are developing further our footprint with the owners that we actually have in this part of the world,” she said.
Zarraluqui recently moved into her role at Hyatt following her time as vice president of global development at Spanish hotel chain Meliá Hotels International. At Hyatt, she said she has a global goal and oversees the full strategy of the Hyatt Inclusive Collection footprint. That means having a resort in every place where the all-inclusive segment can be driven, from the up-and-coming markets to the most mature ones.
“We’re talking about from the CALA region to Europe, the Middle East and Southeast Asia, so we have a full footprint of development that we would like to undertake,” she said.
Specifically in CALA, Hyatt has 16% of the all-inclusive market share with about 155 resorts and approximately 58,000 keys. That means it’s the biggest player, but there’s room to grow, she said. It plans to consolidate its presence in markets where it already operates, namely Jamaica, the Dominican Republic, Mexico and Aruba, as well as further develop its brands in other markets where it does not have as big a presence.
Hyatt’s Ziva and Zilara brands have “huge potential” there, she said. There’s also the Bahia Principe brand as well as Alua, which is well-established as a brand in Spain and is on the right track in CALA. Hyatt’s lifestyle brand Vivid is targeted to the emerging millennial and Gen Z travelers.
There are many more markets with growth potential for Hyatt, including Costa Rica and El Salvador, she said.
Within the last year, Hyatt’s Inclusive Collection opened the Secrets St. Lucia Resort & Spa, Secrets Baby Beach Aruba, Secrets Playa Esmeralda Resort & Spa, Dreams Playa Esmeralda Resort & Spa and Secrets Mirabel Cancun Resort & Spa. It has also undertook renovations at its Zoëtry Agua Punta Cana, Secrets Playa Mujeres Golf & Spa Resort and Hyatt Zilara Cancun.
Looking ahead, Hyatt has planned openings for the Hyatt Vivid Punta Cana and the Secrets Macao Beach Punta Cana this year and the Hyatt Ziva Punta Cana in 2029.
Making deals, partners
Hyatt is at the tail end of its integration of the Playa acquisition, Zarraluqui said. Hyatt's relationship with Playa dates back to 2013, with the creation of the Ziva and Zilara brands.
“It has been very smooth, because the relationship, the network was there, the knowledge was there, the parties were already working in a very solid way,” she said.
Hyatt has also gained many talented people as a result of the deal, including Nico Valle, vice president of growth for the region, she said.
The deal fit with Hyatt’s business mindset, and Playa was a business that complemented Hyatt, she said. Hyatt bought everything and then sold the real estate to Tortuga Resorts for $2 billion. The Bahia Principe deal similarly made sense with its joint venture.
Hyatt has a big platform for development in CALA with actual partners, investors and families who own hotels, Zarraluqui said. More than 30% of the owners Hyatt works with have three or four resorts with Hyatt.
It’s necessary to have the right mix between ownership company and brand, she said. All-inclusive resorts are a specialized segment, and there aren’t many groups as developed in operating in this segment.
The new all-inclusive space
The all-inclusive segment has evolved dramatically over the years, Zarraluqui said. It was previously a simple model in which guests could organize their vacation beforehand, knowing exactly what they’re paying for. They would go to the resort and have their food and beverage and entertainment.
Now the segment has a different level of inclusiveness with the growth of high-end properties, she said. Not only does it get guests out of the noise of organizing a vacation, it gives them a variety of experiences to have. There’s well-being, dining, entertainment, spa, sports and many others to choose from.
“I would say that the good evolution of the all-inclusive is it’s not conceived as a commodity, but a value-driven model very much linked to the experience that you are providing,” she said.
One of the biggest changes this segment has seen is the growth of interest among travelers ages 18 to 25, Zarraluqui said. More than 70% of these travelers in the U.S. and Canada have said they are more interested in an all-inclusive resort experience than they were five years ago.
The growing popularity of the all-inclusive segment is why the big brands want to be players, she said. It’s not an easy entry because it requires expertise in knowing how to operate a full-day, 365-day experience in a packaging segment. These resorts aren’t typically franchised and have management structures.
At the end of the day, everything is linked to results, she said. It’s a competitive market, and all of the brands are fighting with each other to get deals. Hyatt has a proven track record, and potential partners know what it can do, she said.
“When we go to that type of pitch, we have a little bit of an advantage because of what we already have and what we can demonstrate, while other brands maybe are not there yet,” she said.