Luxury Italian brand Baglioni Hotels and Resorts has announced a strategic financial partnership with Palace Resorts, which will see the Mexican group take a 75 per cent stake in Baglioni’s holding company Cogeta Spa.
Palace Resorts currently has a portfolio of nine all-inclusive properties in destinations including Cancun, Los Cabos in Mexico, and Ocho Rios in Jamaica.
The deal will see Palace get a foothold in the European market, where Baglioni has hotels in cities including Venice, Florence, Rome and London, as well as the forthcoming Casa Baglioni Milan which is scheduled to open in January 2023.
A press release said that the agreement would allow Baglioni Hotels and Resorts to further develop in the US market, which represents 70 per cent of Palace Resorts’ business, while also being able to reach over 75,000 Palace Elite Vacation Club Members.
Baglioni also said that the deal would enable it to explore “new profitable openings in Italy and Europe through direct acquisition from the Real Estate division of Palace Resorts”.
Commenting on the news Gibran Chapur, executive vice president of Palace Resorts, said:
“It is such an honour for us, the Chapur Family, to take our Company to a global reach through Baglioni Hotels and Resorts.
“We invested in this great Italian Collection for many reasons, starting with the kindness and great execution ability of its staff in and out of the hotels, and it will be a pleasure to keep collaborating with our new partner and CEO, Guido Polito, who has taken the Group to worldwide recognition with the Italian spirit in every detail of guests’ experience.
“We will grow our investments in Europe, Asia and the Middle East with the very much capable team of professionals that work at Baglioni by taking the Le Blanc and Moon Palace Brands to this side of the world.”
Last year British businessmen David and Simon Reuben entered into a strategic partnership with Baglioni Hotels and Resorts, to “facilitate the rollout of Baglioni-branded hotels around the world”.
The agreement was part of a wider deal which saw the Reuben Brothers acquire the five-star Baglioni Hotel Luna in Venice, which is housed within a 12th-century building close to Piazza San Marco.
Source: Business Traveller