Interview: Resort renaissance - How Hyatt is planning to increase its leisure offering
With the acquisition of Apple Leisure Group in 2021, Hyatt transformed itself into a leader in the resort market. Now the company is looking to cement its leading position in the sector with a series of eye-catching openings over the next few years. We recently got the lowdown on what’s happening from Nuno Galvao Pinto, regional vice president, acquisitions and development.
Hospitality Investor: Which destinations are currently the primary focus for Hyatt's resort expansion, and why?
Nuno Galvao Pinto: In Europe, countries like Greece, Spain, Portugal and Italy are witnessing significant resort development. The appeal of Mediterranean climate, rich cultural heritage, and established tourism infrastructure make these regions attractive for both leisure travellers and investors. These countries are also in line with Hyatt’s strategy of focusing on regions with growing tourism and high demand for luxury and leisure travel.
Elsewhere, countries such as Egypt and Morocco (where we recently opened the new Park Hyatt in Marrakech) are seeing renewed interest. In Saudi Arabia, the Kingdom's Vision 2030 initiative aims to diversify its economy by boosting tourism, leading to increased interest from hotel groups in developing resorts along the Red Sea and other areas.
In general, an increase in international travel, especially post the pandemic, has led hotel groups including Hyatt to expand their resort offerings to meet diverse traveller preferences. There's a rising demand for luxury all-inclusive resorts, prompting hotel groups to develop properties that offer comprehensive packages.
Hospitality Investor: Are there any emerging markets that Hyatt is considering for future resort development?
Nuno Galvao Pinto: In the EMEA region, which accounts for 40 per cent of our global resort portfolio, we currently operate resorts in Spain – including the Balearic and Canary Islands as well as the mainland coast – along with Greece, Portugal, Montenegro and Bulgaria.
These countries are natural growth areas for us, each at different stages in developing their all-inclusive offerings. In Bulgaria and Montenegro, for example, we’re breaking new ground in the segment, while we’ve been pioneers in introducing luxury resorts in the other three. Additionally, Apple Leisure Group’s extensive expertise has given us a strong network of relationships with key intermediaries, providing a powerful commercial advantage. This helps us attract both direct bookers and those who rely on tour operators or travel agents for their all-inclusive vacations.
We also see tremendous potential in destinations across the region where we don’t yet have resorts but that are ideally suited for all-inclusive properties. Mediterranean countries - whether on the European or North African side - are particularly attractive, and we’re already exploring several opportunities that are in advanced stages.
Our position as the world’s largest operator of luxury-branded rooms in resort locations, combined with our strong track record in the Middle East, gives us a unique advantage to lead the introduction of all-inclusive resorts in coastal destinations within the GCC, and in countries such as Saudi Arabia. And we could extend this to select Sub-Saharan African countries, where strong connectivity could support the introduction of luxury all-inclusive resorts in seaside destinations.
Hospitality Investor: Could you share insights into one of Hyatt’s recent or upcoming resort projects that you’re particularly excited about?
Nuno Galvao Pinto: I think we’re still riding the high from the recent announcement of our planned partnership with Spain’s Grupo Piñero. This deal alone is expected to expand our global all-inclusive portfolio by approximately 30 per cent, adding five major resorts in Spain and further cementing Hyatt’s position as a leading provider of all-inclusive experiences worldwide. It also highlights our versatility in forming alliances with hotel groups of all sizes. In this case, the partnership revolves around a 50/50 joint venture to manage 23 resorts across four countries and own the Bahia Principe brand.
Another recent milestone is our entry into the Portuguese resort market with the opening of Dreams Madeira Resort, Spa & Marina. With 366 rooms, it’s a large-scale project firmly positioned in the luxury segment, in a market where, as I mentioned earlier, we’re eager to expand further.
Looking ahead, we’ve got some exciting properties in the pipeline, including Alua Soul Sunny Beach Resort & Spa in Burgas, Bulgaria, and Dreams La Miranda in Fuerteventura, both set to open within the next couple of years.
Hospitality Investor: Why do you think the resort segment has proven to be so resilient in recent years?
Nuno Galvao Pinto: I believe the resilience of the resort segment can be attributed to several factors. First, it’s a type of holiday that fosters strong loyalty. It’s one of those experiences where the saying ‘once you try it, you’ll come back’ really holds true. In our case, by offering a diverse range of experiences, we’re also able to grow with our guests. They might start with an upscale brand like Alua, then transition to the luxury offered by Dreams, Secrets or Zöetry, and ultimately reach the unparalleled luxury of Impressions by Secrets. Alternatively, independent luxury resorts such as 7Pines Sardinia and SCHLOSS Roxburghe, part of Destination by Hyatt, or Hôtel du Palais Biarritz and Hotel Flüela Davos from Hyatt’s Unbound Collection, offer the ultimate, locally-inspired and urban-focused luxury.
In uncertain times, like the years following the pandemic, and even now amid a volatile international climate, our all-inclusive brands also provide cost predictability, which more and more travellers are seeking. Even in our region, where guests often want to venture out of the resort to explore local cuisine and culture, the assurance of having a set number of meals included in their stay remains a compelling draw.
On top of that, 72 per cent of our more than 125 global resorts fall within the Luxury and Upper Upscale segments, which gives us another layer of resilience by catering to a type of traveller whose spending on travel is less sensitive to economic cycles.
These factors have driven the strong performance of our resorts over the past few years, including in 2024. Through June of this year, our Net Package RevPAR is up 7.4 per cent year-to-date compared to 2023, with growth coming from both higher occupancy and increased average rates.
Hospitality Investor: What trends are emerging in the space when it comes to resorts?
Nuno Galvao Pinto: Today’s guests are seeking personalised, elevated experiences. While all-inclusive resorts have sometimes struggled with outdated perceptions – lower quality offerings and limited services – Hyatt’s products in that space couldn’t be further from that stereotype. We pride ourselves on listening closely to our guests and delivering exceptional all-inclusive experiences through innovative programming, top-tier dining, and premier service standards.
Another key trend we’re seeing is the growing demand for wellbeing, which is increasingly shaping what guests expect from their stays. From healthier food and drink options to state-of-the-art fitness amenities - and even sleep tourism – a sector projected to grow by over $400 billion globally between 2023 and 2028, it is clear that travellers are seeking experiences that enhance their mental, emotional, and physical health.
At Hyatt, we’re integrating this demand into our resort offerings, giving guests opportunities to explore new ways of incorporating wellbeing not just into their vacations but into their daily lives. We’re moving beyond traditional wellness to embrace a more holistic approach, offering meaningful experiences that cater to the whole self. For example, Alila Jabal Akhdar and Alila Hinu Bay, part of Alila hotels, offer immersed, curated experiences where guests can unwind and re-charge under the surroundings of the stunning natural environment.
Hospitality Investor: How did the acquisition of Apple Leisure Group change Hyatt’s strategy?
Nuno Galvao Pinto: The acquisition of Apple Leisure Group in 2021, then consisting of around 100 hotels and resorts across 10 countries in Latin America, the Caribbean, and Europe, was truly transformative. Since that deal, we’ve become the largest operator of luxury-branded rooms in resort destinations worldwide, with more than 125 resorts and more than 42,000 rooms in 12 countries, spanning 10 strong and distinct brands.
I wouldn’t say it changed our strategy, but it did result in an overnight transformation, positioning us as a leader in the leisure segment – a position we’ve not only maintained, but strengthened. This success is largely due to the fact that we didn’t just incorporate properties and brands with strong market appeal; we also brought on board highly skilled teams who had pioneered new approaches in the segment. Their expertise complemented Hyatt’s, particularly in managing resorts with unique characteristics: many of our properties in Europe, for example, are seasonal. Additionally, their deep relationships with tour operators, travel agents, and other intermediaries have been crucial in providing our resort owners with a powerful commercial engine.
