These projects comprise executed management and franchise contracts and encompass around 117,000 keys, itself a room record amount.
Pipeline growth
In statistics released as part of the hotel group’s year-end 2022 financial results, it revealed that the pipeline included an Apple Leisure Group (ALG) contribution of 8,000 rooms.
Quarter on quarter overall pipeline growth was 5% in terms of sites (the total stood at 550 at end of Q3 2022) and 3% in relation to keys (Q3 2022’s room count was 114,000).
Outstanding openings
In Q4, 57 new hotels (or 10,784 rooms) joined Hyatt’s system. Notable openings included 31 franchised hotels (or 5,082 rooms), predominantly across Germany, as part of Hyatt’s agreement with Lindner Hotels & Resorts, Secrets Impression Moxché, Hyatt Centric Ville-Marie Montréal, and Fuji Speedway Hotel and Grayson Hotel in New York City, both part of The Unbound Collection by Hyatt portfolio.
For the full year of 2022, 120 new hotels (or 23,227 rooms) joined Hyatt’s system with 48 properties (or 8,281 rooms) converted to a Hyatt brand.
The overall net rooms annual growth was 6.7%, with Hyatt predicting a further 6% by the end of 2023.
Dream transaction
On 2 February 2023, the company completed the acquisition of Dream Hotel Group and paid cash of approximately US$125 million. The terms of the agreement provide for up to an additional $175 million of contingent consideration through 2028 as properties come into the pipeline and open.
The acquisition adds 12 lifestyle hotels (or approximately 1,700 rooms) to the Hyatt portfolio, with an additional 24 signed long-term management agreements for hotels expected to open in the future.
Asset-light success
Mark S. Hoplamazian, president and CEO of Hyatt, said: “Our results in the fourth quarter mark the completion of a truly transformative year. We generated a record level of fees and free cash flow while leading the industry in organic growth for a sixth consecutive year.
“This outcome is a direct result of successfully executing on our asset-light growth strategy. We continue to experience positive momentum in the markets in which we operate and are optimistic about the year ahead.”
