Big Brands Make Big Plays for All-Inclusives

Four months after launching its 21st brand, Wyndham Hotels & Resorts is adding to its offerings again. Unlike the luxury-focused Registry Collection Hotels, however, the new Wyndham Alltra is an all-inclusive resort brand that focuses on the upper-midscale segment.

Wyndham is partnering with Playa Hotels & Resorts, an owner, operator and developer of all-inclusive resorts in vacation destination in Mexico and the Caribbean, for the first two properties, the 458-room Wyndham Alltra Cancun and the 287-room Wyndham Alltra Playa del Carmen, both of which are located in Mexico. Currently undergoing renovations, both resorts remain open and are scheduled to complete renovations and officially become Wyndham Alltra resorts in December.

“This is a license agreement, it is not owned real estate, it is not managed real estate,” said Geoff Ballotti, Wyndham’s president and CEO. “Ninety-nine percent of our hotels are franchised and that is what these will be; 97 percent of our hotels are not managed and this is very consistent with that.”

The new brand’s name “Alltra” is based on the brand promise of “All-Inclusive Travel for All,” keeping with Wyndham’s mission of delivering exceptional experiences to the every-day traveler, according to the company. While it focuses on the upper-midscale segment, Wyndham said hotels in the brand will offer upscale food and beverage, services, amenities and activities “with an expressive local flavor at an exceptional value.” The brand will feature both family-friendly and adults-only resorts in the Caribbean and other resort destinations. 

Growth Plans

Conversions are going to be a big piece of Alltra’s growth, according to Ballotti.

“These are really high-quality, highly rated resorts, and you can find in those same markets other really high-quality resorts that are independent,” he said. “That opportunity will certainly from a conversion standpoint present itself across Mexico in the resort destinations like Cozumel.”

Wyndham and Playa expect to develop a number of properties under the strategic alliance.

“We have an exclusive development agreement with Playa where we will in Mexico and certain to-be-identified countries in Latin America, they will have the exclusive development agreement for this one brand, which we’re thrilled with,” Ballotti said. “So when they develop another Wyndham Alltra or convert another one of their independent hotels to the Wyndham Alltra, they will have the exclusive on that.”

Conversions and development also are expected in other regions beyond Latin America, but Ballotti said Alltra is not going to be the company’s fastest-growing brand.

“When I talk to my development teams in Europe, Africa and the Middle East or Southeast Asia and the Pacific Rim, there’s a lot of excitement,” Ballotti said. “There’s a lot of opportunity there as our development teams get out and begin to introduce the Wyndham Alltra brand into those markets. Having said that, we want to be very, very selective. The brand is only as strong as its weakest link in the chain. So, we will be as we’ve been with Playa, very slow and deliberate in terms of who we partner with.”

Wyndham Alltra Playa del Carmen

Wyndham Alltra Playa del Carmen

Leisure Focus

The Alltra launch is very consistent with Wyndham’s strategy and approach from a leisure standpoint, according to Ballotti.

“Throughout this pandemic, roughly 80 percent of our business has been leisure, typically it’s 70, and our business travelers really sort of focus as leisure travelers. Our business travelers are much different—80 percent of our business travelers don’t have offices they go to. But they love to vacation.”

That love of vacationing has been the impetus behind the launch, along with the demands of loyalty program members. “It’s very consistent in that 50 percent of our check-ins across North America are Wyndham Rewards members, and what they want is just another place to aspire to vacation,” Ballotti said. “When you look at the redemption demands of our nearly 90 million members, what they’re most looking for are aspirational leisure resorts to redeem into, which is why we’re always from a strategic standpoint looking for how do we make the program more aspirational.”

Ballotti said that Playa’s research shows that all-inclusive offers a distinct cost advantage over planning a trip in individual pieces:

If you were to try to find a resort of equal quality in that market, the cost of that vacation with quality food, quality beverages and amenities, it would be 40 percent more,” he said. “That percentage comes down where there’s more pricing power to maybe 25 percent to 30 percent”—still a significant savings.

Members will be able to redeem their Wyndham Rewards points at Wyndham Alltra resorts and earn points for their stays.

Playa owns and/or manages a total portfolio consisting of 22 resorts with 8,366 rooms in Mexico, Jamaica and the Dominican Republic. Playa owns and manages 15 resorts with 6,004 rooms and owns two resorts in the Dominican Republic that are managed by a third party. It also manages five resorts on behalf of third-party owners.

Wyndham Hotels & Resorts’ portfolio comprises approximately 9,000 hotels with 798,000 guestrooms across nearly 95 countries on six continents.

Hyatt Hotels Corporation

The Wyndham news follows Hyatt Hotels Corporation’s huge news in early August that it had entered into a definitive agreement to acquire Apple Leisure Group (ALG) from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash. The transaction is anticipated to close in the fourth quarter of 2021, subject to customary closing conditions.

ALG’s resort brand management platform AMResorts, according to Hyatt, provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas under the AMR Collection brand portfolio, including Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts, as well as the fast-growing Alua Hotels & Resorts brand. The acquisition also includes ALG’s membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations, along with destination management services and travel technology assets. Following the completion of the transaction, ALG’s business will continue to be led by current ALG CEO Alejandro Reynal and the current ALG leadership team. Reynal will become a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian.

According to Hoplamazian, the addition of ALG’s properties will double Hyatt’s global resorts footprint.

ALG’s hotel portfolio consists of over 33,000 rooms in 10 countries. The portfolio has grown from nine resorts in 2007 to nearly 100 properties by the end of 2021 and has a pipeline of 24 additional hotels in the development process. ALG’s Unlimited Vacation Club has roughly 110,000 members who receive preferred rates and other benefits at AMR Collection properties.

Strategic Rationale  

After the completion of the transaction, Hyatt says it will offer the largest portfolio of luxury all-inclusive resorts in the world, will double its global resort footprint, will be the largest operator of luxury hotels in Mexico and the Caribbean, and will expand its European footprint by 60 percent. The acquisition will extend Hyatt’s brand footprint into 11 new European markets, and greatly enhance its growth potential in Europe, a region the company says is critical for global growth in leisure travel.

Its network of developers and operational expertise are expected to further accelerate growth of ALG brands. Hyatt plans to expand beyond ALG’s current pipeline in new geographies in which ALG does not currently have hotels.    

It’s also expected the combined resources of ALG and Hyatt will open up expanded offerings and experiences for the benefit of the combined companies’ customer base. 

Size matters: ALG Vacations is one of the largest packaged tour providers and leisure travel distribution platforms in North America serving Mexico and the Caribbean. Also included in the acquisition are Amstar, a leading destination services management company in Mexico and the Caribbean, and its Hawaii-focused counterpart Worldstar; and Trisept Solutions, its leisure travel technology platform.

Separately, Hyatt Hotels Corporation has announced the opening of Hyatt Ziva Riviera Cancun, an all-inclusive family-friendly resort, marking the latest addition to the Hyatt Ziva portfolio, which will be operated by Playa Hotels & Resorts.

Located near the Cancun Hotel Zone, the 438-room Hyatt Ziva Riviera Cancun is set between the Caribbean Sea and the lagoon of Bahia Petempich. The resort has suites with private balconies offering ocean views and special touches, including spa-like bathrooms with rainfall showers, as well as hot tubs, turndown service, high-tech entertainment and complimentary minibars.

The property offers 17 globally inspired and locally authentic restaurants, bars and lounges. Among other amenities, the resort has nine swimming pools, including an ocean-view pool and a water park with tall slides, besides a kids’ pool. Guests will also find a fitness center with modern amenities and a two-story Zen Spa inspired by pre-Hispanic Mayan culture. The spa has 13 indoor and eight outdoor treatment rooms which are designed to reflect the natural scenery.

Hyatt Ziva Riviera Cancun’s more than 51,000 square feet of meeting and event space, modern accommodations, a multitude of gourmet dining options and conference facilities are well suited for weddings, anniversary celebrations and corporate meetings. 

Royalton Splash Punta Cana

Royalton Splash Punta Cana is one of the five Dominican properties joining the Autograph Collection Hotels brand.

Marriott International

Meanwhile, All-Inclusive by Marriott Bonvoy has officially announced the addition of 20 resorts to its Autograph Collection Hotels brand. The all-inclusive Autograph Collection resorts span across Antigua, Costa Rica, Grenada, Mexico, Jamaica, the Dominican Republic and St. Lucia. Since the all-inclusive portfolio will participate in the Marriott Bonvoy travel program, guests will now have a new travel option where they can earn and redeem points through a convenient, pay-one-price concept.

Each of the 20 Autograph Collection All-Inclusive resorts enables guests to enjoy an all-inclusive vacation with enriching programs, locally driven dining options and spa and wellness offerings. For instance, Planet Hollywood Adults Scene Cancun offers excursions that include a catamaran cruise through the Caribbean Sea on to Isla Mujeres. At Royalton Antigua, guests can experience the privacy of the island’s overwater bungalows outfitted in natural wood with glass floors to admire the marine life below, infinity plunge pool, and an overwater hammock.

At Royalton CHIC Cancun, an adults-only resort, Level 18 Rooftop Cabana Lounge takes center stage, complete with a pool, where guests can enjoy craft cocktails and Mexican cuisine.

The 20 resorts join the platform following the recent agreement with Sunwing Travel Group’s hotel division, Blue Diamond Resorts, catapulting Marriott International into the top 10 of global all-inclusive players. The Mexican resorts joining the portfolio include Planet Hollywood Cancun; Planet Hollywood Adults Scene Cancun; Royalton CHIC Cancun; Royalton Riviera Cancun and Hideaway at Royalton Riviera Cancun.

The Dominican Republic hotels joining the collection are Royalton Bavaro; Royalton CHIC Punta Cana (likely to be added to the portfolio in January 2022); Royalton Punta Cana; Hideaway at Royalton Punta Cana and Royalton Splash Punta Cana.

The Jamaican hotels included in the platform are Grand Lido Negril Au-Nature; Royalton Blue Waters Montego Bay; Royalton Negril; Hideaway at Royalton Negril and Royalton White Sands Montego Bay, while the St. Lucian properties are Royalton Saint Lucia and Hideaway at Royalton Saint Lucia.

Planet Hollywood Costa Rica, Royalton Antigua and Royalton Grenada are hotels in Costa Rica, Antigua and Grenada, respectively, which round out the 20 properties joining the portfolio. 

Planet Hollywood Beach Resort Cancun

Planet Hollywood Cancun has been added by All-Inclusive by Marriott Bonvoy to its Autograph Collection Hotels brand.

Hilton Hotels Corporation

Hilton has announced the signing of three managed beachfront resorts, expanding its all-inclusive and luxury portfolio in the country. The new additions—Hilton Vallarta Riviera All-Inclusive Resort, Hilton Tulum All-Inclusive Resort and the Conrad Tulum—will be part of Hilton’s growing Mexican portfolio, which has over 70 hotels open and more than 30 in the development pipeline. 

Hilton Vallarta Riviera All-Inclusive Resort is expected to convert in Q4 2021. Situated between the beaches of the Bay of Banderas and the Sierra Madres Mountain, the 444-room resort has a private beach, two pools, a full-service spa, fitness center, six craft cocktail bars and seven specialty restaurants, offering a variety of cuisine, including Asian, Italian and Mexican flavors, as well as seafood and tapas options. Catering to the evolving needs of today’s business traveler, the resort offers nearly 13,000 square feet of outdoor event space and 13,000 square feet of flexible indoor meeting space.  

Conrad Tulum and Hilton Tulum All-Inclusive Resort are anticipated to join the Hilton portfolio in Q4 2021 and Q1 2022, respectively. According to a press release, the hotels will each provide guests with a brand-exclusive experience comprising world-class dining and extensive recreation options, while offering visitors access to shared amenities, including a meetings and events complex and a spa.  

The new-build 349-room Conrad Tulum will be Conrad Hotels & Resorts’ first hotel in Quintana Roo on the eastern coast of the Yucatan Peninsula. Nestled among verdant tropical vegetation, overlooking the Caribbean Sea’s turquoise waters, and situated on an expansive stretch of beach, the hotel is located near one of the best-preserved Mayan sites in Mexico. The hotel will offer a selection of accommodation choices, including a range of suite options. There will also be seven restaurants and bars, serving an array of cuisine from Mediterranean and Asian to a special Chef Table’s dining experience. Guests will also have the option to relax and unwind in five pools. 

The 735-room oceanfront Hilton Tulum All-Inclusive Resort will come with views of the Caribbean Sea. The resort will have seven dining options, as well, offering international fare. Among other amenities there will be an expansive multiple pool complex with a waterpark, and a secluded beach.   

In addition to the variety of dining and recreation options at the luxurious Conrad Tulum or Hilton Tulum All-Inclusive Resort, all guests at either hotel will have access to a 21,500-plus-square-foot spa, with 16 treatment rooms and a pool, in a private and quiet area surrounded by tropical resort grounds. Guests visiting for meetings or events will have access to a 55,000-square-foot convention center and an auditorium that seats up to 400 people.

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