All-inclusive hospitality group Palace Resorts is gaining a European foothold via its acquisition of Italy's Baglioni Hotels & Resorts.
Under what the pair are calling a "strategic financial partnership," Mexico-based Palace Resorts has agreed to acquire a majority stake in Baglioni Hotels & Resorts' parent group, Cogeta Spa, with Baglioni CEO Guido Polito to remain as head of the Italian company.
The Baglioni Hotels & Resorts portfolio includes city hotels in Rome, Florence and London as well as resorts in Sardinia and Puglia. The group also has a resort in the Maldives. A fourth Baglioni city hotel is expected to open in Milan early next year.
The properties will augment Palace Resorts' Mexico-focused footprint, which comprises nine all-inclusive resorts in Cancun, Playa del Carmen, Cozumel and Los Cabos in Mexico and Ocho Rios in Jamaica. Its brands include Palace, Moon Palace and Le Blanc.
As part of Palace Resorts, Baglioni said it plans to focus on expansion in Europe, Asia and the Middle East. It also aims to introduce the Baglioni brand to the Americas and the Caribbean.
Baglioni expects to benefit from increased exposure to the U.S. market, which accounts for 70% of Palace Resorts' business.
Meanwhile, Palace Resorts said it will explore opportunities to bring its Moon Palace and Le Blanc flags to Baglioni's part of the world.