Hyatt Hotels has sharpened its offering to hotel owners, in a bid to partner on more new projects, expanding into markets where Hyatt brands have yet to reach.
In the US alone, Hyatt has identified more than 300 sub-markets, where it says there are opportunities to grow with a Hyatt brand. In addition, those markets where Hyatt is already represented have options to broaden the offering. Hyatt says in many major urban markets, it might typically have just four hotels, when its large brand group rivals might have as many as 14 different hotels under their brand umbrella.
Improving Efficiencies and Financial Returns
Hyatt is tackling the issues on several fronts, across build efficiency and cost. On the cost front, Hyatt is partnering with HALL Structured Finance, creating a structured loan package for prospective Hyatt hotel owners. This will support development, notably for the Hyatt Studios product, in markets across the USA. “Owners are navigating a complex development landscape, and the right owner-aligned growth strategy looks different from market to market,” said Julienne Smith, head of growth across the Americas for Hyatt.
The finance programme is expected to benefit the pipeline of Hyatt Studios properties. The upper midscale extended stay offer is designed around a lean operating model that is attractive for new build owner operators, with currently more than 70 sites lined up. The ever growing Hyatt Studios pipeline includes 2027 openings in Barrie, Danville, Lehigh Valley and Marysville, all during the first half of the year.
The group is always looking for ways to tweak hotel designs, so that construction costs can be reduced, and operating efficiencies improved. The latest fourth generation prototype for Hyatt Place, for example, moves from steel and concrete to lower, four story wooden structure instead. The typical room count is also reduced, from 140 to 127 rooms, and as a result the overall build cost is down by around 25%. Guests will notice no difference, while owners should enjoy a substantially better return on their investment.
Hyatt also has a range of flexible options for owners that want the support of the Hyatt system, while maintaining the character of their hotels. The Unbound Collection and jdV by Hyatt are two conversion-friendly luxury and lifestyle brands, while Hyatt Select and Unscripted by Hyatt cover other market segments.
International Signings
The Unscripted by Hyatt brand is truly international, with upcoming openings including Saraca Corbett, a 44 room hotel in Uttarakhand, India; Wink Hanoi Westlake in Vietnam; and Unscripted by Hyatt Hongsamville in South Korea.
In Canada, The Clayfield Niagara-on-the-Lake has just opened as an Unbound Collection property. Also joining the brand shortly will be Chinese properties in Hemu and Wuhan East Lake, and in the USA, The Waylen Philadelphia Navy Yard and The Digby in Savannah, Georgia.
