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Park Hyatt drops its flagship Mallorca hotel resort – will be taken over by a local brand

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Park Hyatt Mallorca was a long awaited addition to the European luxury resort scene when it opened a couple of years ago.

The project, as a new build resort, had suffered delays and in the first season it had no beach club access.  When hotels in Mallorca reopened for the Summer a few weeks ago, the Park Hyatt remained closed.  At very short notice – given that it had been taking bookings – it announced that it would not re-open until March 2021.

The Spanish press (see here and here) are reporting that Hyatt has terminated its management contract with the hotel.

Park Hyatt Mallorca rebranding

The report claims that it had been agreed that the hotel would be open all year, which has not happened.  I was a little concerned about its performance when World of Hyatt dropped the number of points needed for a redemption stay here, making it one of the best value properties in the entire chain.

Whilst Park Hyatt may not necessary be the obvious choice to run the property, Hyatt is a far stronger brand in Germany than in most European countries, and the German market is a core target for Mallorca.

Cap Vermell Group, which owns the hotel, has said that it will operate it under its own Cap Vermell brand.  You can see examples of their resorts on the parent company website here.  It is very unlikely that it will be able to charge the current £600 per night in peak season without the Park Hyatt brand and service standards in place.  In reality, it is possible that another international brand will be interested – it might be a fit for IHG’s new Regent brand, for example, or for Conrad.  The Ritz Carlton also has an established position in Spain via Abama.

Park Hyatt Mallorca to rebrand

Antoni Mir, CEO of Cap Vermell Group, said (translated):

“For Mallorca, it is bad news, mainly because we are losing a hotel benchmark worldwide. The decision of the North American hotel group has been motivated because in the last winters the Island had lost connectivity and this affected the objectives set in terms of marketing and management. “

The resort had reportedly cost over €100 million – although that looks cheap when you see the scale of the place – and was reportedly entirely financed by a Qatari investment fund.

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Comments (14)

  • TGLoyalty says:

    Could be a good Marriot, luxury collection or something.

    St Regis already has a property in Mallorca.

  • pauldb says:

    Spain seems a tough market for the international chains. I struggle to understand why they can’t get a foothold in the Canaries (just one RC?) when there are brands like Lopesan charging £300 year round.

    • John T says:

      Is anyone going to pay big bucks for a St Regis or Park Hyatt in Tenerife though? These luxury brands work well in luxury locations, but Canaries are more cheap and cheerful than five star opulence.

      • Rob says:

        There is a Ritz Carlton in Tenerife.

      • Anna says:

        People pay up to £800 pp for economy return flights in the school holidays (not me, I hasten to add, I’d be off long haul for that money)!

      • 1ATL says:

        They most certainly do. When I worked for a luxury UK tour operator before being made redundant recently it was one of our most popular destinations. Gran Meliá, Sheraton and RC Abama were our three top European sellers and £5k-£10k for a 7-10 night holiday were our bread and butter. 2 or 3 bookings a year for the Imperial Suite at Abama commanded in the region of £65k per week.

        • Anna says:

          Sheesh. Can you get that with Bonvoy points? 😂
          Sorry to hear about the redundancy 😩

    • Marcw says:

      Marriott and Melia have a massive market share. Very difficult for Hilton, and other international chains…

  • 1ATL says:

    Also the Abama was a much classier property before RC took over the management contract. Service took a bit of a nosedive once they got their control on things.

  • Matt says:

    Fingers crossed for IHG. I’ve been hoping for a luxury European resort I can use my points for.

  • Mark says:

    Virgin Holidays are by far the most difficult company to contact. In fact impossible to contact. Both their email and telephone numbers state that they are not being monitored and even trying their Facebook and Twitter accounts fails to get any response. TOTALLY USELESS

  • StevieM says:

    I knew it – as soon as they cancelled my booking and said they weren’t reopening till March!
    I’ll never get to experience it at 20k points! 🙁

  • Nick G says:

    Gutted almost bought the points this week. Then I read the not reopening until March 2021 and thought something didn’t seem right….

  • tony says:

    I wonder if this failure to open year round was behind the Hilton Sa Torre’s de-flagging? It was supposed to open as a Casa Cook this year but for obvious reasons that’s not happening and will now open next year under the management of a local chain.

    I hope they can maintain the quality and experience – we had some lovely holidays there…