In recent years, the all-inclusive model (AIM) resort scene in the Caribbean and Latin America (CALA) has emerged as a dynamic and lucrative sector — attracting attention from major hotel brands and investors alike. With the allure of hassle-free vacations and expansive growth potential, AIM resorts are reshaping the travel landscape. Our latest research delves into the promising opportunities within this market, highlighting strategic acquisitions and partnerships that are driving innovation and expansion. Join us as we explore how AIM resorts are poised to redefine leisure travel, offering both travelers and investors a unique chance to engage with a thriving industry.
Our most recent research of Smith Travel Research 2025 data shows that CALA’s overall lodging market has around 1.4 million rooms, with 751,266 rooms — over half — centered in the Caribbean1 and Mexico.2 Primary beach destinations, such as Cancun, Punta Cana, and Playa del Carmen, register about 62% of the 438,624 total rooms across approximately 500 denominated beach and coastal destinations across the Caribbean and Mexico previously mentioned.
AIM resorts stand out for delivering stress-free vacations with everything included — meals, activities, and that priceless peace of mind. Travelers today want high-quality experiences without the planning headache. Our analysis narrows the AIM opportunity to nearly 103,400 rooms across over 200 hotels with an average size of approximately 485 rooms, prime for acquisitions or conversions. Available AIM targets are vastly limited to independent operators who tend to be family-owned with a “patrimonial” hold perspective, making the possibility of a transaction scarce and tricky. A potential acquisition will most likely entail high capital requirements and a price premium due to the embedded acquisition of real estate, unless ownership is willing to carve out the real estate and only sell the operating contract.
The industry has seen a wave of consolidation, with brands such as Marriott Hotels & Resorts (Mariott), Hilton Hotels & Resorts (Hilton), Wyndham Hotels & Resorts (Wyndham), and Hyatt Hotels Corporation (Hyatt) diving into the segment.
- Marriott snatched up Elegant Resorts in 2019 and then teamed up with Sunwing Travel Group's hotel division — Blue Diamond Resorts — in 2021.
- In 2021, Wyndham agreed to a strategic partnership with Playa Hotels & Resorts (Playa) and created the AIM brand name Alltra3 (AI Travel for All).
- Towards the end of 2021, Hyatt bought Apple Leisure Group (ALG) for $2.7 billion and tapped into ALG’s “all-in-one” vertically integrated model. Most recently, Hyatt agreed to acquire Playa, the only true third-party AIM resort operator.
- Hilton has also made multi-million-dollar investments in order to expand its AIM footprint — bolstering talent, strategy, and distribution through tour operators and wholesalers — by hiring key personnel with AIM experience.
More importantly, and as mentioned above, the acquisition of Playa leaves an actionable gap within a high barrier to entry beach-resort market segment and opens the door for new players to step up and manage resorts for major U.S. brands, such as Hilton and Marriott, under franchise agreements.
There is much optimism regarding the segment’s future, considering continued capital investments in infrastructure, such as airports, in addition to improved air travel options, which only enhance the accessibility and allure of these primary leisure destinations, in addition to now attracting more international and institutional investment. More importantly, hotel management agreements for AIM resorts show solid returns, with base fees ranging between 2.5% and 3.0%, with average incentive fees of 10%, potentially netting between $1.5 to $2.0 million in annual total fees per resort with an average room count of 400 rooms.
The high capital costs are a potential hurdle, specifically for international institutional investors, but there is huge potential in CALA’s all-inclusive market. As previously mentioned, Playa's departure creates new opportunities. Coupled with the growth and innovation being pushed by the major U.S. hotel brands, we are confident the sector is ready to shine, offering travelers and investors alike a chance to be part of something special.
In a previous article I wrote on the all-inclusive market, I questioned whether U.S. brands would shift from European Plan models to embrace the segment, noting it seemed intriguing but perhaps too niche for major investment in new concepts. However, I also suggested that if the segment was of strategic importance, entering it would likely be via acquisition or investment in an existing company with a robust portfolio. The wave of recent consolidation proves the segment’s appeal. I am confident this market will keep growing, fueled by brands, but especially by institutional investors like private equity firms eager to capitalize on its room for expansion—across existing and new regions, innovative branding, and seamless integration with distribution channels, unhindered by traditional tour operator constraints.
Ankura Real Estate Advisory Services — Hospitality & Leisure Group
The current hotel mergers and acquisitions (M&A) environment remains dynamic and continues to evolve as industry consolidation continues, with hospitality companies seeking to expand their lodging portfolios, enhance market presence, and achieve economies of scale to capitalize on operational efficiencies. Ankura’s hospitality and leisure professionals have provided advice on numerous transactions involving high-profile lodging assets and companies within the U.S. and CALA region.
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[1] Includes Puerto Rico but excludes Cuba and Haiti.
[2] Only includes beach destinations.
[3] The future of the brand is uncertain due to Hyatt's acquisition of Playa Hotels & Resort.
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© Copyright 2025. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
