Hyatt Opens First Hyatt Studios Hotel in Mobile, Alabama, Marking a New Chapter for Upper-Midscale Extended Stay Travel

Rhea-AI Summary

Hyatt Hotels (NYSE:H) has launched its first Hyatt Studios hotel in Mobile, Alabama, marking the debut of its upper-midscale extended stay brand. The Hyatt Studios Mobile / Tillmans Corner, which soft-opened in February, features 122 studio apartment-style suites with fully equipped kitchens and modern amenities.

The property, located less than 10 miles from Mobile International Airport, offers convenient access to downtown attractions and corporate offices. Hyatt Studios plans significant expansion with 40 more hotels expected by 2027. The brand is part of Hyatt's Essentials Portfolio and includes features like free fiber internet, EV charging stations, 24/7 Market, Free Grab 'n' Go Breakfast, and a 24-hour Fitness Studio.

Developer 3H Group is advancing additional Hyatt Studios projects in Huntsville, Alabama and Jacksonville, Florida. The Mobile location is currently offering a grand opening promotion of 15% off for bookings made by May 30, 2025.

Positive

• Expansion plans include 40 new hotels by 2027, indicating strong growth potential
• Strong developer interest with multiple projects already in pipeline
• Strategic location near airport and corporate offices enhances business appeal
• Modern amenities and fully-equipped suites position brand competitively in upper-midscale segment

Negative

• None.

Insights

Hospitality Industry Analyst

Hyatt's launch of its Hyatt Studios brand represents a strategic entry into the high-margin extended stay segment, with 40 additional properties planned by 2027 and over 50 hotels already in the pipeline. This calculated expansion addresses a significant market opportunity in the upper-midscale extended stay category, where Hyatt previously lacked a dedicated offering.

The extended stay segment typically delivers superior economics compared to traditional hotels, with higher profit margins, lower operational costs (reduced daily housekeeping), and more stable occupancy patterns. These properties require less staffing while commanding strong average daily rates, creating an attractive financial profile for both Hyatt and property investors.

Developer reception appears robust, with 3H Group already advancing additional locations in Huntsville and Jacksonville after completing this first property. This early momentum suggests the brand concept resonates with property owners and investors, potentially accelerating Hyatt's ability to scale the brand.

By positioning Hyatt Studios within its Essentials Portfolio alongside Hyatt Place, Hyatt House, and Caption by Hyatt, the company strengthens its competitive position across multiple price points and stay durations. The brand's apartment-style accommodations with full kitchens and lifestyle amenities directly target the growing segment of travelers seeking home-like accommodations for extended periods.

While this single property won't meaningfully impact Hyatt's near-term financial performance given its portfolio of more than 1,400 hotels globally, the strategic value lies in establishing a foundation for future growth in a resilient, high-margin segment that complements its existing offerings.

Hyatt’s upper-midscale extended stay brand debut offers a sleek, apartment-style experience; 40 more hotels expected by 2027.

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE:H) celebrated the grand opening of its first-ever Hyatt Studios hotel, Hyatt Studios Mobile / Tillmans Corner in Mobile, Ala. Following its soft opening in February, the hotel marked the occasion by welcoming local officials, Hyatt leaders, hotel owners and operators, customers, and community members. Guests experienced firsthand the brand’s fresh take on extended stay, designed to deliver the perfect balance of comfort and modern convenience.

Hyatt Studios Mobile / Tillmans Corner Ribbon Cutting

"The grand opening of Hyatt Studios Mobile / Tillmans Corner marks an exciting milestone as we continue to expand our offerings to meet the growing demand for extended stay accommodations," said Dan Hansen, global head of Hyatt Studios. "This is just the beginning for the Hyatt Studios brand as the brand demonstrates enthusiasm among hotel owners and developers for this brand. We’re proud to celebrate the grand opening with 3H Group and LBA Hospitality, whose dedication has brought the Hyatt Studios vision to life."

Located in Tillmans Corner, less than 10 miles from Mobile International Airport, the hotel offers convenient access to downtown Mobile, Gulf Coast attractions, and nearby corporate offices. Guests can explore local landmarks like the USS Alabama Battleship Memorial Park, GulfQuest National Maritime Museum, Bellingrath Gardens, and the Mobile Carnival Museum. In addition to the city’s tourism appeal, Mobile’s diverse industries in manufacturing, aerospace, maritime and healthcare contribute to the city’s attractiveness, making it an ideal fit for the Hyatt Studios brand.

Thoughtfully Designed for Extended Stays

As part of Hyatt’s Essentials Portfolio—a collection of focused service brands including Caption by Hyatt, Hyatt Place, Hyatt House, and Hyatt Select—Hyatt Studios are designed for extended stay travelers seeking modern amenities and a comfortable, home-like experience.

Hyatt Studios Mobile / Tillmans Corners features 122 studio apartment-style suites designed for comfort and functionality, each appointed with a well-equipped kitchen, including a full-size refrigerator, built-in cooktop, microwave with air fryer and convection-oven capabilities, dishwasher, and essential cookware. Each suite includes a comfortable sleeping area, along with a separate lounge area featuring a plush sofa or sleeper sofa, a multifunctional table and ample storage space for comfortable long-term stays.

The Hyatt Studios brand introduces a new level of convenience with a variety of thoughtful amenities, including a 24/7 Market stocked with snacks and easy-to-make meals, a Free Grab ‘n’ Go Breakfast, and a 24-hour Fitness Studio to stay active. Additional conveniences include self-service laundry, an outdoor patio with a firepit and grill, and an expanded Borrows Program, where guests can borrow everyday essentials like blenders, board games, and items for kids and pets. Reinforcing Hyatt’s focus on guest experience and the future of travel, the Hyatt Studios brand is leading the industry by offering free fiber internet and making EV charging stations a signature feature across all properties.

Expanding the Hyatt Studios Brand with Strong Ownership and Management

3H Group celebrates the opening of Hyatt Studios Mobile / Tillmans Corner while also advancing its next Hyatt Studios projects in Huntsville, Ala and Jacksonville, Fla. Expanding its portfolio across Hyatt’s Essentials Portfolio, 3H Group continues to grow with additional Hyatt developments, including a Caption by Hyatt hotel in Chattanooga, Tenn, set to open in 2026 as the market’s first Hyatt hotel, the recent acquisition of Hyatt Place Tampa Airport/Westshore, which will undergo a comprehensive renovation, and a new construction dual-brand Hyatt Place and Hyatt House hotels in East Nashville, Tenn. Partnering with LBA Hospitality, a seasoned operator managing over 115 hotels across the southeastern U.S., 3H Group and LBA bring extensive experience in extended stay and select service management. This collaboration helps ensure a seamless guest experience and a strong market debut for Hyatt Studios Mobile / Tillmans Corner.

"As the first developer to break ground on a Hyatt Studios hotel and now the first to open one, we’ve seen firsthand how this brand fills a critical gap in the extended stay space," said Hiren Desai, president and CEO of 3H Group. "The Hyatt Studios brand offers a smart, efficient design and a flexible operating model that resonates with both guests and owners. The brand’s focus on quality extended stay experiences, paired with Hyatt’s strong support and reputation, made it a compelling investment for us, and we’re excited to continue growing with additional Hyatt Studios projects in the future."

For more information on Hyatt Studios Mobile / Tillmans Corner or to make a reservation, please visit the hotel’s website. Guests who book by May 30, 2025, can take advantage of the hotel’s grand opening offer to receiving 15% off. As a participating World of Hyatt property, the hotel is also part of the 500 Reasons to Stay offer, allowing members to earn 500 Bonus Points per qualifying night through May 31, 2025.

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 December 31, 2024, the Company's portfolio included more than 1,400 hotels and all-inclusive properties in 79 countries across six continents. The Company's offering includes brands in the Luxury Portfolio, including Park Hyatt®, Alila®, Miraval®, Impression by Secrets, and The Unbound Collection by Hyatt®; the Lifestyle Portfolio, including Andaz®, Thompson Hotels®, The Standard®, Dream® Hotels, The StandardX, Breathless Resorts & Spas®, JdV by Hyatt®, Bunkhouse® Hotels, and Me and All Hotels; the Inclusive Collection, including Zoëtry® Wellness & Spa Resorts, Hyatt Ziva®, Hyatt Zilara®, Secrets® Resorts & Spas, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Sunscape® Resorts & Spas, and Alua Hotels & Resorts®; the Classics Portfolio, including Grand Hyatt®, Hyatt Regency®, Destination by Hyatt®, Hyatt Centric®, Hyatt Vacation Club®, and Hyatt®; and the Essentials Portfolio, including Caption by Hyatt®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove. 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 Studios

The Hyatt Studios brand is an upper-midscale, extended-stay concept designed to deliver studio apartment-style suites with an elevated, thoughtful design. Guests can enjoy the simple necessities that make everyday living and traveling more comfortable. Each hotel delivers spacious studio suites with must-have features for a convenient and comfortable experience, including Free Grab ‘n’ Go Breakfast (with your stay), 24/7 Market, self-service guest laundry, fitness studio, free high-speed Wi-Fi, outdoor patio and grills, and pet-friendly accommodations. The Hyatt Studios brand joins Hyatt’s Essentials portfolio of select-service brands and is part of the World of Hyatt loyalty program. The brand has over 50 hotels in the pipeline with several locations under construction. To learn more about Hyatt Studios visit hyattstudios.com and follow the brand on Facebook, Instagram, and X.

Forward-Looking Statements

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Factors that may cause actual results to differ materially from current expectations include, but are not limited to, general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and 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 geopolitical 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, weather and climate-related events, such as hurricanes, earthquakes, tsunamis, tornadoes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve specified 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 owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential 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 maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotel services agreements 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; risks associated with the introduction of new brand concepts, including 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, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and manage the Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; and violations of regulations or laws related to our franchising business and licensing businesses and our international operations; 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.

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Media Contact

Dana Fioravanti

Hyatt

Dana.fioravanti@hyatt.com



Emily Mekstan

Hyatt

Emily.mekstan@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

How many Hyatt Studios hotels are planned to open by 2027?

Hyatt (NYSE:H) plans to open 40 new Hyatt Studios hotels by 2027.

What amenities are included in Hyatt Studios Mobile's apartment-style suites?

Suites include full-size kitchen appliances, separate lounge area, plush sofa, multifunctional table, and ample storage space.

What is the grand opening offer for Hyatt Studios Mobile?

Guests can receive 15% off bookings made by May 30, 2025.

Where are the next Hyatt Studios locations being developed?

3H Group is developing new Hyatt Studios properties in Huntsville, Alabama and Jacksonville, Florida.

What loyalty program benefits are available at Hyatt Studios Mobile?

As a World of Hyatt property, guests can earn 500 Bonus Points per qualifying night through May 31, 2025.