Hyatt hikes global pipeline
Pictured: rendering of the forthcoming Park Hyatt Marrakech.
US-headquartered Hyatt Hotels Corporation has upped its pipeline total for the first time this year.
While in both Q1 and Q2 2022 the group’s upcoming room count numbered 113,000 rooms, for Q3 this increased by 1% to 114,000.
Development and openings
As of 30 September 2022, the company had a pipeline of executed management or franchise contracts for approximately 550 hotels, inclusive of Apple Leisure Group’s (ALG) pipeline contribution of approximately 20 hotels (or approximately 8,000 rooms). This maintains the 550 site total from the previous quarter.
Net rooms growth was 18.7%, or 4.5% when excluding ALG, in the third quarter of 2022. In this period 22 new hotels (or 4,243 rooms) joined Hyatt’s system. Notable openings included Dreams Cozumel, Hyatt Regency Lisbon, Park Hyatt Jakarta, Thompson Madrid, and Unbound Magma Resort Santorini.
Transactions and capital strategy
Recent transactions include selling the entity that was the operating lessee of Hyatt Regency Mainz in Germany for a nominal amount to an unrelated third party and entering into a long-term franchise agreement. Plus the company sold Hyatt Regency Greenwich in Connecticut for approximately $40 million to an unrelated third party and entered into a long-term management agreement.
Hyatt intends to successfully execute plans to sell $2 billion of real estate, net of acquisitions, by the end of 2024 as part of its expanded asset-disposition commitment announced in August 2021. As of 3 November 2022, the business has realised $721 million of proceeds from the net disposition of owned assets as part of this commitment.
Differentiated model
Mark S. Hoplamazian, president and CEO of Hyatt, analysed: “We had a tremendous quarter that demonstrates our unique positioning and differentiated model. We reported total fee revenue that exceeded 2019 by 50%, raised our full year 2022 net rooms growth outlook to approximately 6.5%, and expanded our pipeline to 114,000 rooms.”
Forthcoming projects within that pipeline include Park Hyatt Marrakech, bringing 181 keys to Morocco in Q1 2023; in the following quarter, the 187-key Hyatt Regency Edinburgh Marina will be delivered in the Scottish capital; and further ahead, the 351-room Grand Hyatt Grand Cayman Hotel and Residences will open in the Cayman Islands in Q4 2024.
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