Hyatt Grows Luxury and Lifestyle Brand Footprint Across the Americas Region

Rhea-AI Summary

Hyatt Hotels (NYSE: H) is expanding its luxury and lifestyle brand footprint across the Americas with over 20 planned openings through 2025. The growth includes new properties in the U.S., Canada, Mexico, Latin America, and the Caribbean, entering new regional markets. Since 2017, Hyatt has doubled its luxury rooms, tripled resort rooms, and quintupled lifestyle rooms globally.

Key developments include:

• The first Andaz hotel in Florida
• Debut of Hyatt Centric brand in Costa Rica
• First Grand Hyatt properties in Arizona and Utah
• Planned acquisition of Standard International, enhancing Hyatt's lifestyle portfolio

The expansion aligns with Hyatt's focus on high-end travelers seeking experiential luxury, resort, and lifestyle stays. The company is also enhancing its World of Hyatt loyalty program with new benefits and partnerships.

Positive

• Expansion of over 20 new luxury and lifestyle properties across the Americas through 2025
• Entry into new regional markets, increasing brand presence
• Significant growth in luxury, resort, and lifestyle rooms since 2017
• Planned acquisition of Standard International to enhance lifestyle offerings
• Enhancement of World of Hyatt loyalty program with new benefits and partnerships

Negative

• None.

Insights

Hospitality Industry Analyst

Hyatt's strategic expansion in the luxury and lifestyle segment is a significant move that positions the company for strong growth. The planned addition of over 20 new properties across the Americas by 2025 demonstrates Hyatt's commitment to capturing high-end travel demand. Key points:

• Hyatt has doubled its luxury rooms and tripled its resort rooms since 2017, making it the fastest-growing luxury portfolio globally.
• The expansion into new markets like Deer Valley, Miami and Valle de Guadalupe will diversify Hyatt's geographic footprint and tap into growing leisure destinations.
• The planned acquisition of Standard International will further strengthen Hyatt's position in the lifestyle segment, appealing to younger, experience-driven travelers.

This expansion strategy aligns well with current travel trends, as evidenced by Hyatt's consumer sentiment report showing 88% of consumers intend to travel for leisure. The focus on luxury and lifestyle brands should drive higher RevPAR and profit margins, potentially boosting Hyatt's financial performance in the coming years.

Financial Analyst

Hyatt's expansion strategy presents a compelling growth narrative for investors. The company's focus on high-end segments is likely to yield positive financial results:

• Higher RevPAR: Luxury and lifestyle properties typically command premium rates, which should boost revenue per available room.
• Improved margins: These segments often have higher profit margins due to increased spending on amenities and experiences.
• Asset-light growth: Many new properties are likely to be managed or franchised, reducing capital intensity and improving return on invested capital.

The planned acquisition of Standard International could be accretive to earnings, adding a well-regarded lifestyle brand to Hyatt's portfolio. However, investors should monitor execution risks associated with rapid expansion and integration of new brands. Overall, this strategy positions Hyatt to capitalize on the recovery in high-end travel demand, potentially driving long-term shareholder value.

Travel Industry Consultant

Hyatt's expansion strategy is astutely aligned with evolving travel trends and consumer preferences:

• Experiential focus: The emphasis on lifestyle and luxury brands caters to travelers seeking unique, immersive experiences.
• Wellness integration: Partnerships with Peloton, Headspace and MasterClass reflect the growing importance of wellness in travel.
• Loyalty program enhancement: The addition of Mr & Mrs Smith and Under Canvas properties to World of Hyatt increases redemption options, potentially driving member engagement and retention.

The expansion into new markets like St. Lucia, Aruba and Valle de Guadalupe taps into the trend of travelers seeking new, less-crowded destinations. Hyatt's focus on creating distinct local experiences through its various brands should resonate well with modern travelers. This strategy positions Hyatt to capture a larger share of the high-value travel market, potentially outpacing industry growth in the coming years.

Hyatt adds new properties in new markets and expands wellbeing offerings to enrich the guest experience

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) continues the strategic expansion of luxury and lifestyle hotels with a significant development pipeline of more than 20 recent and planned openings across the U.S., Canada, Mexico, Latin America and the Caribbean through 2025. This planned growth will expand Hyatt’s brand footprint in several new regional markets, allowing Hyatt to care for guests and World of Hyatt members in more places and on more stay occasions.

Andaz Miami Beach Elevate Pool Deck Event Rendering (Photo: Business Wire)

Since 2017, Hyatt has doubled its number of luxury rooms, tripled its number of resort rooms, and quintupled its number of lifestyle rooms globally. This growth establishes Hyatt as the fastest-growing luxury portfolio with the largest number of luxury-branded rooms in resort locations worldwide and underscores Hyatt’s position as the premier hotel brand for high-end travelers seeking rich and experiential luxury, resort and lifestyle stays. Hyatt found in its recent Mid-Year 2024 Consumer Sentiment and Travel Expectations Report that 88% of consumers are showing a steady intent to travel for leisure.

“We are engaged with our guests and World of Hyatt members and taking in their feedback helps us strengthen our understanding of the key markets and leisure experiences that resonate with and excite them the most,” said Crystal Vinisse Thomas, vice president and global brand leader for Hyatt's luxury and lifestyle brands. “From Deer Valley to Miami to Valle de Guadalupe, Mexico, our luxury and lifestyle brands’ expansion in new and key markets is driven by our desire to offer travelers more opportunities to explore the unique communities our hotels are a part of and the chance to embark on incredible experiences with Hyatt.”

Looking ahead, Hyatt will offer guests more iconic lifestyle brands and experiences through the planned acquisition of lifestyle pioneer Standard International. Enhancing its position as a leading lifestyle hospitality leader, Hyatt will launch a new dedicated lifestyle group that will include The Standard and Bunkhouse Hotels brands, as well as many of its world-class restaurant and nightlife affiliates (The Boom Boom Room, The Standard Grill, Le Bain, and more). Following the transaction’s close, Hyatt is planning to welcome Standard International properties into World of Hyatt, bringing even more celebrated lifestyle options to its 48 million loyalty members.

Newly Opened and Coming Soon

Hyatt plans to add several new hotels across prime leisure markets in Americas in 2024, from the first Andaz hotel in Florida and the debut of the Hyatt Centric brand in Costa Rica, to the first Grand Hyatt properties in Arizona and Utah. Recent and upcoming 2024 openings and renovations include:

• The Legend Paracas Resort (joined the Destination by Hyatt brand on June 18, 2024) located on the coast of Peru, about three hours south of Lima, the 124-room resort is nestled between the Paracas Nature Reserve and the Pacific Ocean, offering panoramic views of the Paracas Bay and desert hills.
• Grand Hyatt Indian Wells Resort & Villas (opened September 9, 2024) rebranded from Hyatt Regency Indian Wells Resort & Spa in California after an extensive $64 million renovation including transformed 531 accommodations, including 39 spacious suites which have completed, while 43 one- and two-bedroom private villas, are set to debut by November 2024. The rebrand ushers in a new era of luxury for the iconic desert resort with an expanded lobby experience, refreshed meeting and event spaces, two new dining concepts and a reimagined pool complex with extended cabana offerings.
• Hyatt Centric Delfina Santa Monica (opened September 18, 2024) marks the Hyatt Centric lifestyle brand’s sixth hotel in California and Hyatt’s 101st hotel in the Golden State, with 315 guest rooms. The hotel will undergo a design enhancement this fall.
• Thompson Palm Springs (expected to open September 30, 2024) debuted with a collection of nearly all of its 168 bungalow-inspired guest rooms and suites in the heart of the city’s design district. The new lifestyle hotel features spirited dining concept, Lola Rose Grand Mezze and the first tasting room from HALL Napa Valley.
• Hyatt Centric San José Escazú (expected to open in October 2024) will mark the Hyatt Centric brand’s first hotel in Costa Rica and serve as a homebase to explore San Jose, the country’s capital, and largest city. Located in Plaza Tempo, the hotel will feature 161 guest rooms and suites with artwork crafted by local Costa Rican artists.
• Hyatt Centric Santo Domingo (expected to open in October 2024) will be the first Hyatt branded hotel in Santo Domingo, Dominican Republic. Located in the city's central area within the thriving Ensanche Piantini neighborhood, the 130-room hotel will offer a rooftop bar, coffee shop, signature restaurant and lobby bar.
• Grand Hyatt Scottsdale Resort (expected to rebrand in October 2024) will be the first Grand Hyatt hotel in Arizona after undergoing a $115 million renovation inclusive of 496 updated accommodations, including 18 luxury Casitas, six elevated dining experiences, expanded pool and cabana offerings, a refreshed spa and more group meeting space capabilities to transform and rebrand from Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch.
• Grand Hyatt Deer Valley (expected to open in November 2024) will mark the debut of the Grand Hyatt brand in Utah and will feature 436 luxury accommodations, multiple food & beverage experiences and one of the largest mountainside event facilities in all the U.S. that’s perfect for all seasons. The hotel is positioned with direct access to both Deer Valley’s existing and expanded ski terrain as well as the Jordanelle Reservoir.
• Andaz Miami Beach (expected to open December 2024) has been transformed from The Confidante Miami Beach to the first Andaz hotel in Florida. This hotel features an industry-first, ocean-view check-in experience, 287 rooms, 64 suites, two reimagined pools and a historic beach house. The property will weave the rich cultural tapestry of the locale into every aspect of the resort, offering a dynamic mix of Miami-inspired programming and exclusive partnerships, including highly anticipated collaborations with the world-renowned José Andrés Group.
• Maison Métier (expected to join The Unbound Collection by Hyatt in 2024) is a 67-room private luxury guesthouse serving as a luxury oasis in the heart of New Orleans, thoughtfully preserved in its architectural integrity from 1908 and will embody the story of a bygone era.

Strategic Growth in 2025

In 2025, Hyatt plans to introduce several luxury and lifestyle brands in key markets across the Americas region, including the first Park Hyatt and Dream Hotels properties in Mexico, the first Hyatt Centric brand in Puerto Rico, and the first Grand Hyatt hotel in Grand Cayman. New openings planned for 2025 include:

• Thompson Miami Beach (Early 2025)
• Cas En Bas Beach Resort St. Lucia (Destination by Hyatt, early 2025)
• Secrets Baby Beach Aruba (February 2025)
• Park Hyatt Los Cabos at Cabo del Sol (Spring 2025)
• Secrets Playa Esmeralda Resort & Spa (Dominican Republic, April 2025)
• Dreams Playa Esmeralda Resort & Spa (Dominican Republic, April 2025)
• Dream Valle de Guadalupe (Mexico, July 2025)
• Grand Hyatt Grand Cayman Resort & Spa (2025)
• Secrets St. Lucia Resort & Spa (2025)
• Hyatt Centric Querétaro (Mexico, 2025)
• Hyatt Centric Isla Verde San Juan (2025)
• Breathless Puerto Vallarta Resort & Spa (2025)
• Dreams Grand Island (2025)

“Hyatt resorts across the U.S., Canada, and Latin America – including our Inclusive Collection properties – are experiencing significant momentum as we look to close out 2024 and kick off 2025. This progress reflects the power of our brands and Hyatt’s commitment to delivering inimitable experiences for our valued guests and members,” said Melanie Benozich, associate vice president, marketing & global branding, Hyatt Inclusive Collection. “As we grow our Inclusive Collection footprint into exciting new resort destinations like Aruba and St. Lucia, we remain committed to offering personalized hospitality through exceptional service, immersive dining and more.”

World of Hyatt: A Game-Changing Loyalty Program

Grounded in its purpose of care, the Hyatt portfolio’s captivating and awe-inspiring hotels and resorts inspire travelers to be more present while exploring some of the most coveted destinations around the globe. With a vibrant and ever-evolving portfolio, one way Hyatt continues to meet travelers where they are is through World of Hyatt’s reimagined program benefits, offering even more flexibility and choices for members designed to present more awards and choices at more milestones.

World of Hyatt members can now earn and redeem points at a collection of more than 700 boutique and luxury hotels and villas around the globe with Mr & Mrs Smith as well as 13 outdoor resorts through the strategic alliance with Under Canvas, the leader in upscale outdoor hospitality. World of Hyatt members are enthusiastic to unlock benefits and distinct experiences at these awe-inspiring properties.

Hyatt delivers distinctive experiences designed to support guests and members pursuit of healthy, happy and fulfilled lives. This comes to life with first-of-its-kind collaborations with Peloton, Headspace, MasterClass, and Future. Designed to support holistic guest and group wellbeing, Hyatt also inspires discovery and promotes rejuvenation though the World of Hyatt FIND Experiences platform. Now offering over 600 global experiences, FIND experiences that give guests the opportunity to explore the culture and the arts, inspire discovery and promote rejuvenation, all with the guests and member’s wellbeing in mind. Current experiences at luxury and lifestyle hotels include making melodic masterpieces with Songwriters in the Round at Grand Hyatt Nashville, exploring ancient Mayan traditions on a Guided Path to Inner Harmony at Andaz Mayakoba or family-friendly activities like Creative Oysters at Wild Dunes Resort.

For more information or to book a stay, please visit 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240923282399/en/

Meredith Beyer

Meredith.Beyer@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

How many new properties is Hyatt planning to open in the Americas by 2025?

Hyatt (NYSE: H) is planning to open more than 20 new luxury and lifestyle properties across the Americas region through 2025.

What is Hyatt's growth strategy for its luxury and lifestyle brands?

Hyatt is strategically expanding its luxury and lifestyle brands by entering new markets, doubling luxury rooms, tripling resort rooms, and quintupling lifestyle rooms globally since 2017.

Which new markets will Hyatt enter with its expansion plans?

Hyatt's expansion includes new properties in various markets across the U.S., Canada, Mexico, Latin America, and the Caribbean, including the first Andaz hotel in Florida and the first Grand Hyatt properties in Arizona and Utah.

How is Hyatt enhancing its lifestyle offerings?

Hyatt is planning to acquire Standard International, which will add The Standard and Bunkhouse Hotels brands to its portfolio, along with several restaurant and nightlife affiliates.