Mexican luxury hotel company Palace Resorts has acquired a majority 75% stake in Cogeta Spa, the holding company of Italian counterpart, Baglioni Hotels & Resorts.
The deal is part of a strategic financial partnership between Palace and Baglioni intended to expand the global reach of both brands.
Mutual benefits
Guido Polito will remain CEO of the Italian group to give continuity to the work done so far in leading the expansion of the company’s brands through Europe, Asia and the Middle East.
This agreement is designed to bring mutually beneficial advantages, allowing Baglioni to further develop in the US market, which represents 70% of Palace’s business, as well as efficiency improvement, operational cost reduction and new profitable openings in Italy and Europe through direct acquisition from Palace’s real estate division.
Palace positives
For Palace, it adds a luxury European brand to its current portfolio, gaining an experienced and professional management team to handle future hotels, resorts and real estate investments in Europe, Asia and the Middle East.
At the same time, Palace will bring the recognised Italian brand to the Americas and the Caribbean to diversify the product offering for their members and clients in destinations in which they are already market leaders.
EMEA reach
Palace’s executive vice president, Gibran Chapur, commented: “It is such an honour for us, the Chapur Family, to take our company to a global reach through Baglioni Hotels & 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. This acquisition will also allow our Vacation Club members to travel to our new properties around the globe.”
Further potential
Baglioni CEO Guido Polito said: “I am honoured that the Chapur family has recognised Baglioni Hotels & Resorts as the primary luxury European brand seeing the potential that we still have for further developments in Italy and in other key international destinations.
“Remaining CEO of the group will allow me to continue, together with Giuliano Rocchi, vice president, and all the management team, to take forward the work that my father Roberto Polito and I have passionately done over the years, making Baglioni the most renowned and respectful Italian luxury hospitality brand.”
The Italian firm is currently preparing to open the 30-room Casa Baglioni in Milan in January 2023 off the back of refurbishing the 91-key Baglioni Hotel Luna in Venice. While Palace has projects in the pipeline including the 248-key Palace Hotel Torquay in the UK, and Palace Dubai Creek Harbour, bringing 121 rooms to the UAE in Q2 2023.
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Cancun-headquartered Palace Resorts offers all-inclusive vacations at luxury resorts across Mexico.
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