Hyatt's transformative growth continues with planned acquisition of Dream Hotel Group, global expansion of Caption by Hyatt brand and organic growth of Hyatt's global portfolio
CHICAGO–(BUSINESS WIRE)–Hyatt Hotels Corporation (NYSE: H) shared today that Hyatt is positioned for continued transformative growth in 2023 and beyond with a record pipeline of approximately 117,000 rooms worldwide as of year-end 2022. Notably, nearly one in four pipeline properties is classified as a lifestyle hotel, representing 10 percent of the existing base of hotels, further strengthening Hyatt's leadership position in the luxury, lifestyle and leisure segments. The significant growth of these high-value properties in Hyatt's portfolio expands the compelling guest experiences that can further drive World of Hyatt loyalty penetration across the Hyatt portfolio.
A notable driver of this growth is the announced asset-light acquisition of Dream Hotel Group's lifestyle hotel brand and management platform which is expected to bring established lifestyle hotel brands – including Dream Hotels, Unscripted Hotels and The Chatwal – into the Hyatt portfolio. Dream Hotel Group properties are known for their experiential hospitality including hotspot restaurants and nightlife venues built on strategic and unconventional programming and brand collaborations, paired with signature designs that balance substance with sizzle. The acquisition will welcome more than 600 new colleagues into the Hyatt family, bringing deep expertise in experiential hospitality to Hyatt's global portfolio of lifestyle offerings and extending Hyatt's brand footprint in strategic destinations including Nashville, Hollywood, Las Vegas, South Beach, Saint Lucia, Doha and New York City. It will also mark the entrance of Hyatt brands into markets such as the Catskills in New York and Valle de Guadalupe in Mexico.
Additionally, the Caption by Hyatt brand – which combines the design and comfort of an upscale, lifestyle-forward hotel with the flexibility of a select-service property – is poised for significant growth following the successful opening of Caption by Hyatt Beale Street Memphis in 2022. The brand is expected to grow its presence in Tennessee with Caption by Hyatt Chattanooga in collaboration with 3H Group (expected for 2024) and enter California with both Caption by Hyatt Roseville in collaboration with LRE & Companies and American Hospitality Services, Inc. and Caption by Hyatt Sacramento in collaboration with Presidio Hotel Development LLC and 29th Street Capital (both expected for 2026). The Caption by Hyatt brand is expanding internationally with previously announced properties expected to open in China and Japan in 2023, Vietnam in 2025 and Sydney in the coming years. Grounded in caring for people and place and creating connections between them, the Caption by Hyatt brand is committed to hiring diverse talent, vendors, artisans, and suppliers – and celebrating the diversity of people in the communities in which Caption by Hyatt hotels are located.
“Through our intentional long-term growth strategy and by working closely with owners, Hyatt boasts five years of industry-leading organic net rooms growth,” said Jim Chu, executive vice president, chief growth officer, Hyatt. “Owners want to work with us because of our expertise, performance track record and optimal positioning in the industry. We have global scale, but we are nimble enough to create personal relationships, draw on our own experiences and lead with empathy.”
New Luxury, Lifestyle & Leisure Properties in Prominent Markets
Hyatt anticipates additional organic growth across its luxury, lifestyle and leisure offerings, bringing thoughtful design, innovative food and beverage and personalized service around the globe.
The Park Hyatt brand is set to:
– Reestablish its presence in South Africa with Park Hyatt Johannesburg in late 2023 and make its entrance to Morocco with Park Hyatt Marrakech, offering luxury resort elegance with Moroccan charm.
– Return to London with Park Hyatt London River Thames and expand in the Asia Pacific region with Park Hyatt Taipei (Taiwan), Park Hyatt Kuala Lumpur (Malaysia) and Park Hyatt Phu Quoc (Vietnam) in 2024.
In 2023, the Andaz brand will celebrate expansion into new markets with:
– Andaz Doha in Qatar, which will bring locally inspired design and contemporary art to a new level, offering guests signature touchpoints and innovative dining outlets including a South African signature restaurant and a Singaporean street food restaurant.
– Andaz Pattaya Jomtien Beach in Thailand will deliver a lush and secluded beachfront retreat providing myriad ways for guests to connect with the local Thai culture, from destination excursions to authentic dining, wellness and family activities.
– Andaz Mexico City Condesa, which connects Mexican culture with its traditional architecture and imaginative décor, recently opened its doors in January.
– Andaz Macau, which will be set within one of Asia's most iconic and advanced meeting and event destinations – Galaxy International Convention Center (GICC) – will debut as the largest Andaz hotel in the world with more than 700 rooms and suites.
– Andaz Nanjing Hexi in Greater China, which will blend the eclectic spirit of the modern Nanjing and the long history of the prosperous academic culture.
Hyatt's Boundless Collection and Independent Collection, which range from upscale to luxury lifestyle brands, feature a healthy pipeline of expected openings in 2023 and 2024 including:
– Growth of the Thompson Hotels brand with two chic urban oases set to debut with Thompson Palm Springs and Thompson Houston.
– Expansion of the Hyatt Centric brand in prime destinations that connect guests to the heart of the action, including Hyatt Centric Congress Avenue Austin, Hyatt Centric Zhongshan Park Shanghai, and Hyatt Centric Xi'an Gaoxin.
– The anticipated debut of the Destination by Hyatt brand in Florida with the verdant 18-hole signature golf resort Banyan Cay Resort & Golf in West Palm Beach, as well as in Asia Pacific with The Grand Resort in Qingchengshan, China.
– The planned debut of the JdV by Hyatt brand in Rhode Island, with The Pell, a vibrant coastal hotel located in the middle of Aquidneck Island in Middletown, and in Goa with the anticipated opening of Ronil, set on 1.6 acres of coastal land in Baga, India.
– The anticipated opening of NUMU Boutique Hotel, part of The Unbound Collection by Hyatt, in San Miguel de Allende, Mexico.
Introducing All-Inclusive Premier Brands Around the World
Hyatt offers one of the largest portfolios of luxury all-inclusive resorts in the world including a healthy pipeline of expected openings in 2023 spearheaded by growth across Bulgaria's popular Black Sea destinations and the recent launch of Secrets Impression Resorts & Spas, a first-of-its-kind product designed to deliver the highest level of luxury all-inclusive service and amenities. This intimate line of boutique, adults-only havens offer exclusive personalized experiences, butler service and curated gastronomy designed to exceed expectations. The new line extension celebrated the opening of Secrets Impression Moxché Playa del Carmen in December 2022 and expects to welcome its second property, Secrets Impression Isla Mujeres later this year.
Select Service Growth in Top Vacation Destinations Attracting Families and Leisure Travelers
With more than 400 Hyatt Place and nearly 130 Hyatt House properties in top travel destinations across the globe, Hyatt's select service brands continue to extend their customer base to attract leisure travelers and families looking for relaxing, seamless hotel experiences. The Hyatt House brand recently underwent a brand refresh to celebrate all travel occasions, long and short. Travelers staying at Hyatt House hotels globally can make themselves at home, whether it's a family getaway, reuniting with friends or extending a business trip.
Hyatt is expected to add an impressive line-up of Hyatt Place and Hyatt House properties globally over the coming years including in key emerging leisure hotspots and business travel destinations in the U.S. and Canada, such as Hyatt House Traverse City (Michigan), Hyatt House Bozeman (Montana), Hyatt Place Cape Canaveral (Florida), Hyatt House Roseville (California), Hyatt Place Toronto – Downtown/Jarvis Street (Ontario), and Hyatt Place Mississauga – Airport Corporate Centre (Ontario). Additionally, in 2023 the brands are expected to make their international market entries in Guyana and Estonia.
For more information about Hyatt hotels, please visit: www.hyatt.com.
The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of September 30, 2022, the Company's portfolio included more than 1,200 hotels and all-inclusive properties in 72 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Residence Club®, Hyatt Place®, Hyatt House®, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Hyatt Centric®, and Caption by Hyatt; the Independent Collection, including The Unbound Collection by Hyatt®, Destination by Hyatt™, and JdV by Hyatt™; and the Inclusive Collection, including Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Vivid Hotels & Resorts®, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements about Hyatt's growth plans, expected openings, pipeline, planned acquisition, and positioning in the luxury, lifestyle and leisure segments. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, risks associated with the acquisition of Apple Leisure Group, including successful integration of the Apple Leisure Group business; the duration and severity of the COVID-19 pandemic or any additional resurgence and the pace of recovery following the pandemic or any additional resurgence; the short and long-term effects of the COVID-19 pandemic, including on the demand for travel, transient and group business, and levels of consumer confidence; the impact of actions taken by governments, businesses, or individuals in response to the COVID-19 pandemic or any additional resurgence on global and regional economies, travel limitations or bans, and economic activity; the ability of third-party owners, franchisees, or hospitality venture partners to successfully navigate the impacts of the COVID-19 pandemic or any additional resurgence; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and the pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geo-political conditions, including political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters such as earthquakes, tsunamis, tornadoes, hurricanes, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party property owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and the introduction of new brand concepts; the timing of acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); our ability to successfully execute on our strategy to expand our management and franchising business while at the same time reducing our real estate asset base within targeted timeframes and at expected values; declines in the value of our real estate assets; unforeseen terminations of our management or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, including as a result of the COVID-19 pandemic, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; violations of regulations or laws related to our franchising business; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission (“SEC”), including our annual report on Form 10-K and our Quarterly Reports on Form 10-Q, which filings are available from the SEC. These factors are not necessarily all of the important factors that could cause our actual results, performance or achievements to differ materially from those expressed in or implied by any of our forward-looking statements. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.