Hyatt Expands Portfolio in the Golden State and Into a New Market with Hyatt Centric Delfina Santa Monica

Rhea-AI Summary

Hyatt Hotels (NYSE: H) has announced the opening of Hyatt Centric Delfina Santa Monica, marking the brand's sixth hotel in California and the 101st Hyatt hotel in the state. The property, formerly Le Méridien Delfina Santa Monica, is located near iconic attractions like Santa Monica Pier and Venice Beach Boardwalk. It will continue to be managed by Viceroy Hotel Group and is now part of the World of Hyatt loyalty program.

The hotel is set to undergo a $16 million refurbishment, which will include updates to its 315 guest rooms, dining facilities, and nearly 15,000 sq. ft. of meeting space. The refresh will begin this fall and will be phased to minimize disruption. This opening aligns with Hyatt's focus on expanding its presence in the leisure and lifestyle segment, particularly in key markets like Los Angeles.

Positive

• Expansion of Hyatt's portfolio with the addition of the 101st hotel in California
• Prime location near popular Santa Monica attractions
• Planned $16 million refurbishment to modernize facilities
• Integration into the World of Hyatt loyalty program, allowing members to earn and redeem points

Negative

• None.

Insights

Hospitality Industry Analyst

Hyatt's expansion into Santa Monica with the Hyatt Centric Delfina marks a strategic move in the competitive California market. The rebranding of the former Le Méridien property strengthens Hyatt's presence in prime leisure destinations, aligning with industry trends favoring experiential travel. The planned $16 million refurbishment signals Hyatt's commitment to enhancing asset value and guest experience, which could positively impact revenue per available room (RevPAR).

The addition of this property to the World of Hyatt loyalty program is a smart play to drive direct bookings and customer retention. However, investors should monitor the renovation's impact on short-term occupancy rates and the effectiveness of the phased approach in minimizing disruptions. The expansion of Hyatt's lifestyle segment in key markets demonstrates adaptability to changing consumer preferences, potentially positioning the company for stronger growth in the post-pandemic travel landscape.

Real Estate Investment Analyst

The acquisition of this Santa Monica property represents a significant asset for Hyatt's portfolio in a high-value real estate market. The hotel's prime location near iconic attractions enhances its long-term value proposition. The $16 million refurbishment plan is a strategic investment to increase the property's market competitiveness and potentially its valuation.

Investors should note the potential for appreciation in this coveted coastal market. The renovation of 15,000 sq. ft. of meeting space, including a rooftop ballroom, could drive additional revenue streams from events and conferences. However, it's important to monitor the return on investment (ROI) for the renovation against industry benchmarks. The continued management by Viceroy Hotel Group suggests operational continuity, which could help maintain performance during the transition and renovation period.

The former Le Méridien Delfina Santa Monica joins the Hyatt portfolio, growing Hyatt’s brand footprint in California

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) today announced the opening of Hyatt Centric Delfina Santa Monica, marking the Hyatt Centric lifestyle brand’s sixth hotel in California and the 101^st Hyatt hotel in the Golden State.

Primely located in one of Los Angeles’ most iconic beach destinations—the hotel is just steps away from the renowned Santa Monica Pier, Third Street Promenade, Venice Beach Boardwalk and retail district. Hyatt Centric Delfina Santa Monica is a launchpad for savvy, adventurous travelers to explore and discover the best of coastal Los Angeles. The property is now a part of Hyatt’s award-winning World of Hyatt loyalty program, allowing members the opportunity to earn and redeem points on stays at the hotel and across the World of Hyatt portfolio. Hyatt Centric Delfina Santa Monica will continue to be managed by Viceroy Hotel Group, an operating division of Highgate.

The hotel is expected to soon undergo a $16 million refurbishment, bringing a fresh, modern touch to its 315 well-appointed and stylish guest rooms. The refresh will also reimagine the property’s dining experience, with an all-new three-meal restaurant and bar, while revitalizing nearly 15,000 sq. ft. of meeting space – including a stunning 4,500 sq. ft. roof-top ballroom offering panoramic ocean views. The updates will extend to the lobby and guest arrival area, creating a welcoming entry for guests. Additionally, the full-service hotel boasts an inviting fitness facility, including an outdoor pool and whirlpool, ensuring a comprehensive and influential guest experience.

The refresh of Hyatt Centric Delfina Santa Monica is slated to begin this fall, with a carefully phased approach so at to not disrupt operations during the improvements.

“We are committed to growing Hyatt’s brand presence in the leisure and lifestyle segment, and our latest Hyatt Centric hotel opening in a key market like Los Angeles demonstrates our focus on destinations that resonate most with our guests and World of Hyatt members,” said Mike Waddell, senior vice president global franchise operations at Hyatt. “As the first Hyatt hotel in Santa Monica, this lifestyle property not only celebrates the area’s vibrant culture but also offers our guests an opportunity to explore one of Los Angeles’ most iconic coastal destinations. True to the Hyatt Centric brand, the hotel is excited to welcome visitors to a space that creates connection and inspires discovery.”

​​"We are excited to continue the hotel’s legacy as a premier destination in Santa Monica," said Mike Walsh, Chief Operating Officer of Viceroy Hotel Group. "This property has long been a staple in the neighborhood, and we look forward to its next chapter through a new look and feel as Hyatt Centric Delfina Santa Monica."

Hyatt Centric Delfina Santa Monica joins Hyatt’s existing portfolio of lifestyle hotels in the Los Angeles market, including Hotel Figueroa, part of The Unbound Collection by Hyatt in downtown Los Angeles; Dream Hollywood; Thompson Hollywood; tommie Hollywood, a JDV by Hyatt hotel; Andaz West Hollywood; and The Shay, part of The Destination by Hyatt brand in Culver City; as well as multiple Hyatt Regency, Hyatt House, and Hyatt Place properties. This opening also celebrates the Hyatt Centric brand’s intentional growth in one of the most in-demand travel markets in California and joins the brand’s five other hotels throughout the state in Long Beach, Santa Clara, Mountain View, San Francisco, and Sacramento.

Starting today, World of Hyatt members have the opportunity to experience Santa Monica in style and earn points to use toward free nights, dining, well-being experiences, and more.

To celebrate the hotel joining the Hyatt family, Hyatt Centric Delfina Santa Monica will offer guests 15% off when staying a minimum of one qualifying night between September 18, 2024 - October 31, 2025, with code “15OFF”. World of Hyatt members receive a 17% discount with code “MBRS15”. To redeem this welcome offer, the reservation must be booked from August 26, 2024 - October 31, 2024. Terms apply.

For further information and to learn more about the Hyatt Centric brand and the property, please visit the website.

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 June 30, 2024, the Company's portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Dream® 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 Impression by Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

About Hyatt Centric

Hyatt Centric is a brand of full-service lifestyle hotels located in prime destinations. Created to connect guests to the heart of the action, Hyatt Centric hotels are thoughtfully designed to enable exploration and discovery so they never miss a moment of adventure. Each hotel offers social spaces to connect with others in the lobby, meanwhile the bar and restaurant are local hot spots where great conversations, locally inspired food and signature cocktails can be enjoyed. Streamlined modern rooms focus on delivering everything guests want and nothing they don’t. A passionately engaged team is there to provide local expertise on the best food, nightlife and activities the destination has to offer. For more information, please visit hyattcentric.com. Follow @HyattCentric on Facebook and Instagram, and tag photos with #HyattCentric.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240918745927/en/

Hyatt

Meredith Beyer

Meredith.beyer@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

What is the name of Hyatt's new hotel in Santa Monica?

The new hotel is called Hyatt Centric Delfina Santa Monica.

How much will Hyatt (H) invest in refurbishing the Santa Monica property?

Hyatt plans to invest $16 million in refurbishing the Hyatt Centric Delfina Santa Monica.

When will the refurbishment of Hyatt Centric Delfina Santa Monica begin?

The refurbishment is slated to begin in the fall of 2024.

How many Hyatt hotels are now in California after this opening?

With the opening of Hyatt Centric Delfina Santa Monica, there are now 101 Hyatt hotels in California.