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Hyatt Gives Up On Park Hyatt Mallorca

by John Ollila
July 31, 2020
Reading Time: 2 mins read
4

Park Hyatt Mallorca has closed for good, and Hyatt management has turned over the keys to its owners.

The hotel has been closed since March 15, 2020, and it is not expected to reopen before March 2021.

You can access Parl Hyatt Mallorca’s website here.

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Here’s an excerpt from the Majorca Daily Bulletin:

The American Hotel chain Hyatt has left the Management of the Park Hyatt Mallorca Hotel complex in Canyamel, in Capdepera, because in recent years the objective of having facilities open at full capacity all year round were not being met.

According to Mir, the last customer at the Park Hyatt Mallorca Hotel left on March 15 and since then the establishment has been closed because of the coronavirus pandemic.

“Our goal is to reopen it under our own management in March 2021,” he said.

The construction of the hotel complex involved an outlay of more than one hundred million euros, which was entirely financed by a Qatari investment fund.

Conclusion

Hyatt is weak in Europe, and the World of Hyatt guest loyalty program isn’t a significant factor driving bookings compared to competitors such as Hilton Honors or Marriott Bonvoy.

There will be plenty of temporary hotel closures and flag/brand changes in the coming 12 months. Hotels with weak finances will collapse while hotels such as the Park Hyatt Mallorca financed by Qataris will merely end up changing its affiliation.

It is interesting to see if this hotel will reopen under the owner’s brand Cap Vermell or if they end up striking a deal with another chain.

Not sure why Hyatt felt that they could operate the hotel year-round? Many seasonal hotels close for four to five months every year in Europe.

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