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 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.
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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