Hotel companies increasingly turning to all-inclusive resorts

Wyndham, Marriott among brands to jump at leisure industry opportunity

Wyndham CEO Geoff Ballotti and Marriott CEO Anthony Capuano (Getty, Wyndham, Marriott)
Wyndham CEO Geoff Ballotti and Marriott CEO Anthony Capuano (Getty, Wyndham, Marriott)

As the hotel industry grapples with the pandemic, many brands are heading toward warmer weather and all-inclusive reports.

Multiple companies have dived into the all-inclusive slice of the market, including Wyndham, Marriott and Hyatt, according to the Wall Street Journal. Such resorts typically offer all lodging, food and drinks, as well as some leisure activities, for a flat fee.

Wyndham is starting an alliance with Playa Hotels & Resorts to enter the market for the first time, the Journal reported. The Alltra brand and its first two hotels will be on Mexico’s Yucatan Peninsula. Playa is managing the properties, while Wyndham is bringing its brand and sales apparatus.

Marriott is also getting into the business, adding 20 all-inclusive resorts. They’ll operate under the Autograph Collections Hotel brand.

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Then there’s Hyatt, which has been in the sector since 2013 and counts about 45 percent of its rooms as part of leisure hotels. That’s set to increase soon, as Hyatt recently agreed to acquire resort manager Apple Leisure Group for $2.7 billion, increasing its hotel outlay in leisure hotels to more than a majority of its rooms.

The hotel industry is struggling to turn the corner on the pandemic as business travel is hampered by the Delta variant. Business travel isn’t expected to recover to 2020 levels this year.

The Journal said all-inclusive resorts may have advantages compared to traditional hotels. Guests can have all of their needs taken care of in one place, for example, without needing to venture to areas where they could be more susceptible to Covid.

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[WSJ] — Holden Walter-Warner