HOLLYWOOD, Florida — The Caribbean and Latin American region has been an area of strong interest for Hyatt Hotels Corp. for years, and recent leisure demand trends are supporting the company’s investment.
Hyatt realigned its development strategy in 2009 and 2010 to trigger development and growth in key markets to show its commitment to the region, said Camilo Bolanos, vice president of development and real estate in Latin America and the Caribbean, during an interview at the Hotel Opportunities Latin America conference.
Hyatt invested in major projects in Mexico and Brazil, forming several joint ventures to be co-owners and operators of key hotels, he said. The company expanded its all-exclusive portfolio in the region from about a dozen hotels to 60 properties, excluding its acquisition of Apple Leisure Group.
The acquisition of Apple Leisure Group's brands offered Hyatt more opportunity to grow rapidly, Bolanos said. That growth will have the full engines of both the marketing and commercial teams as well as the operations side, something Hyatt was lacking in all-inclusive resorts.
All-Inclusive Resorts
In early May, Hyatt announced its Inclusive Collection, a global portfolio of nine all-inclusive resort brands, composed of Hyatt Ziva, Hyatt Zilara resorts, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Vivid Hotels & Resorts — which is coming soon — Alua Hotels & Resorts and Sunscape Resorts & Spas.
The all-inclusive resort space is one of the fastest-growing segments, not just in Latin America but globally, Bolanos said.
“We have now a platform from a distribution perspective, from an operations perspective and from a branding perspective to grow that space at a rapid pace,” he said.
There are many countries in the Caribbean, Mexico, Central America and South America where Hyatt’s all-inclusive brands could perform well, he said.
With Hyatt’s entrance into all-inclusive resorts, it chose to create and use dedicated all-inclusive brands rather than blend in its other brands to avoid confusing guests, Bolanos said. The addition of the Apple Leisure Group portfolio bolstered Hyatt’s offerings.
“We think that it's a market that evolves every day,” he said of all-inclusive resorts. “That's why we strongly believe that sophistication is exponentially happening. There might be, with some brands, some lines that blend, but for the most part we have really from a product design perspective to guests’ experience, operations and service delivery created very unique experiences.”
Travel Demand
The Caribbean and Latin American region have been in high demand among U.S. travelers who are looking to travel internationally but have limited options, Bolanos said.
“It’s key that for guests who are coming for the first time and trying out destinations in the region that they walk away with this fabulous experience,” he said.
The tourist experiences and the service delivery and culture of the staff at the resorts are differentiators for the region, especially as service levels have dropped in other regions, including the U.S., because of the pandemic.
“We want to make sure that wherever we can, we start bringing most of that back,” he said. “It’s a key moment for those guests that are visitors, that they walk away with this great satisfaction of this great vacation.”
Markets of Interest
Hyatt has a portfolio of hotels through the Caribbean and Latin America region that is best in class because most are newer developments and have opened within the past five to seven years, Bolanos said.
The company’s footprint is smaller than many of its competitors, so growth is an area of focus, particularly in South America, he said. There are still many destinations where Hyatt is present but needs to expand as well as those where Hyatt is absent and needs to enter, he said.
Brazil is a large market with multiple destinations where Hyatt brands have a limited presence but could thrive, he said. In the Andean region, such as Ecuador and Bolivia, Hyatt doesn’t have any hotels, and those are key markets. The company would also like to establish and grow its brands in Argentina and Peru.
Hyatt has a strong presence in Colombia, but those hotels are tied to major markets, leaving opportunities to expand its brand offerings through select-service and extended-stay properties in other market types, he said.
Mexico is where Hyatt is growing fastest as the country represents the largest share of its pipeline, Bolanos said. It’s a mature market that has many destinations in resort and urban sites, so while Hyatt’s presence is already strong there, opportunities exist, he said.
The Caribbean offers great potential for Hyatt, he said. The area is near the U.S. with natural attributes that are unique to each island.
“We have a presence that covers some of the major markets, but we still want to get through almost every other destination in the Caribbean,” he said. “We still have a lot of territory to cover there.”