A luxury hotel being developed on the famous Seven Mile Beach on Grand Cayman will be operated as a Grand Hyatt – marking the brand’s return to the Caribbean island.

Hyatt Hotels Corporation has signed a franchise agreement with the owner of the 351-room property, Pageant Beach Hotel.

The deal will see the hotel being operated under the Grand Hyatt brand by an affiliate of Aimbridge Hospitality, one of the largest independent hotel investment and management firms in North America.

Facilities at the Grand Hyatt Grand Cayman Hotel & Residences – set to open in 2021 – will include a 9,000sq ft (836sq m) destination spa, health club, three swimming pools and six fine dining restaurants.

Targeted at the luxury market, the hotel is being built on a premium 7.1-acre site on Seven Mile Beach – recognised as the focal point for tourists and local community activities.

David Tarr, senior vice president of development for Hyatt, said: “This deal marks the return of the Hyatt brand to the Cayman Islands.

“The opening is part of the expansion of Grand Hyatt in the Caribbean, and especially in Grand Cayman, where the hospitality and tourism sector is primarily aimed at the luxury market.”

The move is part of Hyatt’s plans to grow its footprint on the global luxury and wellness travel market.

As part of its growth strategy, Hyatt acquired wellness brand Miraval in a deal worth US$215m (€201m, £175m) in January 2017.

Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation, said: “The Miraval acquisition reflects our commitment to super-serving the high-end traveller and finding new ways to understand and care for them.

“We know that wellness is an area that is becoming increasingly important to our guests and we share Miraval’s belief that wellness is more than fitness and nutrition – it’s a lifestyle.”