Hyatt’s Growth Momentum Continues With Record Global Pipeline of 129,000 Rooms

Rhea-AI Summary

Hyatt Hotels (NYSE: H) has announced a record pipeline of 129,000 rooms, reflecting 85% growth since 2017. This expansion underscores the brand's strong market presence and strategic growth in lifestyle and resort segments. Hyatt's luxury rooms have doubled, resort rooms tripled, and lifestyle rooms quintupled since 2017. The World of Hyatt loyalty program has also seen substantial growth, with membership up 22% year-over-year, reaching 46 million members globally.

Hyatt's expansion includes notable new openings and rebrandings across various regions, such as the Americas, Europe, Africa, the Middle East, and the Asia Pacific. Key developments include the introduction of the Hyatt Studios brand with over 250 deals in negotiation and the expansion of the Grand Hyatt brand with more than 10 new locations planned in the next two years. The Inclusive Collection also continues to grow, with new properties in Portugal, the Dominican Republic, and Aruba.

Positive

• Record pipeline of 129,000 rooms, an 85% growth since 2017.
• Luxury rooms doubled, resort rooms tripled, and lifestyle rooms quintupled since 2017.
• World of Hyatt loyalty program membership up 22% year-over-year, reaching 46 million members.
• Introduction of the Hyatt Studios brand with over 250 deals in negotiation.
• Expansion of Grand Hyatt brand with more than 10 new locations planned in the next two years.
• Growth in the Inclusive Collection with new properties in Portugal, the Dominican Republic, and Aruba.

Negative

• No specific financial performance data provided, making it difficult to gauge financial health.
• Potential dilution of shareholder value due to rapid expansion and numerous deals.
• High dependency on continued consumer demand for luxury and lifestyle travel amidst economic uncertainties.
• Possible risks associated with the execution of numerous global projects and rebrandings.

Insights

Financial Analyst

Hyatt's record pipeline of 129,000 rooms is a strong indicator of its growth strategy's success, marking an 85% increase since 2017. This substantial expansion highlights Hyatt's capability to attract hotel owners and underscores the strength of its brand. For retail investors, this growth could suggest robust future revenue streams as more rooms typically correlate with increased revenue, especially given the focus on luxury and lifestyle segments which generally command higher rates.

However, it's important to consider the sustainability of this growth and external factors such as economic conditions and travel trends. The doubling of luxury rooms and quintupling of lifestyle rooms could position Hyatt well in the high-end market, which might offer some cushion against economic downturns, as luxury travel often remains more resilient.

Moreover, the 22% increase in World of Hyatt membership year-over-year reflects strong customer loyalty and potential for recurring revenue. The loyalty program's growth is a promising sign, indicating effective customer retention and acquisition strategies.

In the short term, investors might anticipate increased expenses related to the new developments and renovations. However, in the long term, these investments could significantly enhance Hyatt's market position and revenue potential.

Market Research Analyst

Hyatt's strategic positioning in the lifestyle and resort segments addresses the growing consumer preference for experiential travel. The holistic experience offered by lifestyle hotels, which includes evolving programming, food, beverage, art and music, caters well to this demand.

The expansion into new markets such as the Hamptons, Palm Springs and Miami Beach indicates a targeted approach to capturing affluent travelers in high-demand leisure destinations. Additionally, the debut of the Hyatt Studios brand in the upper-midscale extended-stay segment diversifies Hyatt's portfolio, potentially capturing a different customer segment and providing more balance against market fluctuations.

Hyatt’s expansion strategy, including both new builds and rebranding of existing properties, shows a commitment to maintaining a refreshed and appealing portfolio. The focus on high-quality experiences and strategic geographic expansion could enhance brand perception and loyalty.

The significant increase in loyalty program membership also suggests effective market penetration and customer satisfaction, which are important for long-term growth.

Hospitality Industry Expert

The focus on an asset-light business model is a notable element of Hyatt's strategy. This approach, where Hyatt manages properties rather than owning them, can lead to lower operational risks and higher margins, giving the company financial flexibility. The strategic acquisitions mentioned bolster this model, providing immediate market presence without the heavy capital expenditure associated with new builds.

However, the rapid expansion and rebranding efforts must be carefully managed to ensure consistency in service quality across different locations, which can directly impact customer satisfaction and brand reputation.

The introduction of new properties in emerging markets like Paracas, Peru and Monterrey, Mexico, as well as established markets like Berlin and Rome, diversifies Hyatt's geographic footprint. This diversification can mitigate risks associated with over-reliance on any single market, making the company more resilient to regional economic fluctuations.

Growth in lifestyle and resort segments, and the new upper-midscale Hyatt Studios brand, further expands Hyatt’s footprint in new markets while deepening World of Hyatt member loyalty and attracting new guests

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) highlighted today that its pipeline has grown by nearly 85 percent since 2017, reaching a record 129,000 rooms. This significant growth highlights the strong preference of hotel owners and the strength of the Hyatt brand. Hyatt’s commitment to creating the preferred portfolio for high-end guests has resulted in doubling luxury rooms, tripling resort rooms, and quintupling lifestyle rooms since 2017.

“Hyatt’s ability to lead the industry in net rooms growth for seven years is a result of our unique approach to development," said Mark Hoplamazian, president and chief executive officer, Hyatt. "We strategically expand our portfolio of brands, intentionally selecting new and existing markets to enhance our network effect for owners and guests. Our commitment to thoughtful organic growth and strategic acquisitions amplifies our asset-light business model. Our goal is not to be the largest hospitality company, but the company most valued by colleagues, guests, and owners.”

Additionally, the award-winning World of Hyatt loyalty program has quadrupled its membership since 2017 and is up 22% as of the end of the first quarter of 2024 compared to the same period last year, reaching 46 million members globally. World of Hyatt also has 30 percent more members per hotel than its larger competitors.

Lifestyle brands fueling growth, introducing Hyatt to new markets and new guests

Consumers continue to prioritize discretionary spending on experiences with leisure travel demand remaining resilient. Lifestyle hotels create a holistic experience that excites the senses with food and beverage, art, music and programming that is constantly evolving, presenting an enticing proposition for consumers. Hyatt’s upcoming lifestyle property openings and rebrandings include:

Americas:

• The Bentley Hotel Southampton (now open) After undergoing a full renovation, the property will be the first Hyatt-branded hotel in the Hamptons when it joins the JdV by Hyatt brand in September.
• Thompson Palm Springs (expected to open in September 2024) will debut a collection of 168 bungalow-inspired guest rooms and suites in the heart of the city’s design district. The highly anticipated hotel is accepting reservations for stays beginning September 5, 2024, and will feature spirited dining concept, Lola Rose Grand Mezze and HALL Napa Valley’s inaugural tasting room.
• Andaz Miami Beach (expected to open by end of 2024), previously The Confidante Miami Beach, will be the first Andaz hotel in Florida and is undergoing a property-wide multi-million-dollar redesign. The fully reimagined resort will offer guests new immersive dining experiences by the José Andrés Group.
• Thompson Miami Beach (expected to open in late 2024) will overlook Soundscape Park and feature a rooftop pool, restaurant, and bar, in an iconic exterior conceptualized by renowned French architect Rudy Ricciotti and designer Atelier Gulla Jonsdottir.
• The Legend Paracas Resort (expected to open in 2024) will join the Destination by Hyatt brand in 2024 marking the introduction of the brand in South America. Located on the coast of Peru about three hours south of Lima, the resort is nestled between the Paracas Natural Reserve and the Pacific Ocean, offering panoramic views of Paracas Bay and rugged desert hills.
• The Digby (expected to open in 2025) will be the first property to join The Unbound Collection by Hyatt brand in Georgia and will be located on Savannah’s Ellis Square, steps from attractions including City Market, River Street, and world-class shopping and dining.
• Hyatt Centric San Juan Isla Verde (expected to open in 2025) will be the first Hyatt Centric branded hotel in Puerto Rico, located in the buzzy Isla Verde neighborhood, one block away from Isla Verde Beach and walking distance to restaurants, shopping, historical landmarks and nightlife.
• Andaz Turks & Caicos at Grace Bay (expected to open in 2026) will mark the first Hyatt hotel on the island of Turks & Caicos and the first Andaz hotel in the Caribbean. The 5.5+ acre resort will offer three restaurants and bars, an elevated rooftop venue and full array of lifestyle amenities.
• Thompson Monterrey (expected to open in 2026) will be the first urban Thompson Hotel property in Mexico. The hotel will be part of Torre IKON, a mixed-use 31-story tower set to be one of the most iconic high-rise buildings in the San Pedro Garza García neighborhood.

Europe, Africa and Middle East (EAME):

• me and all Berlin East Side (expected to open August 2024) represents one of the first deals with Lindner Hotel Group following the collaboration agreement in October 2022. Featuring 223 guest rooms, me and all Berlin East Side will be a part of the JdV by Hyatt collection.
• Hyatt Centric Cairo West (expected to open late 2024) will be the second Hyatt hotel in Cairo and boast 301 rooms in the city’s western end, close to major business hubs and key tourist attractions.
• Andaz Doha (expected to open late 2024), a 312-room hotel nestled in the prestigious West Bay area of the city will mark the first Andaz branded hotel in Qatar.
• Thompson Rome (expected to open in mid-2025) will be a 70-room property situated in the heart of Rome. It will be the first Thompson branded hotel in Italy and located in the historic building that once housed the Italian Communist Party.
• Thompson Seville (expected to open in 2026) will be the first Hyatt hotel in Seville and the fourth planned Thompson branded hotel in Europe.

Asia Pacific (ASPAC):

• Andaz One Bangkok (expected to open in 2025) marks the first Andaz branded hotel in Bangkok and will be a part of the prestigious One Bangkok, Thailand’s largest integrated development in a central business district.
• Thompson Shanghai Expo (expected to open in Q2 2025) will be the first Thompson branded hotel in Asia Pacific and will be at Expo Park Shanghai, an ideal location for business travelers, trade show attendees, and leisure travelers alike.
• The Caption by Hyatt brand has just made its debut in Asia Pacific with the opening of Caption by Hyatt Zhongshan Park Shanghai in China this April, and will further expand its presence in several Asia Pacific markets with the launch of Caption by Hyatt Namba Osaka in Japan (expected to open in June 2024), as well as the openings in 2025 of Caption by Hyatt Ba Son Saigon in Vietnam,, Caption by Hyatt Kabutocho Tokyo in Japan, and Caption by Hyatt Sydney Capitol Square in Australia.
• The Hyatt Centric brand continues its growth with openings including Hyatt Centric Ocean Front Xiamen in China (expected to open in early 2025), Hyatt Centric City Centre Kuala Lumpur in Malaysia (2025), Hyatt Centric Electronic City Bangalore in India (early 2026) and Hyatt Centric Sapporo in Japan (2026).

Additionally in the Asia Pacific region, ATONA, the modern hot spring ryokan (Japanese-style inn) brand announced in 2022 under a joint venture between a Hyatt affiliate and Kiraku, is expected to open its first properties in 2026 across some of Japan’s top hot spring destinations and areas of natural beauty, including Yufu, Yakushima, and Hakone. ATONA is Hyatt’s first brand to originate from Japan and will offer sophisticated, worldly travelers a rich cultural experience connecting them to local Japanese communities.

Hyatt Studios brand accelerates growth with more than 250 deals and the groundbreaking of second location

The Hyatt Studios brand, Hyatt’s entry into the upper-midscale extended-stay segment, now has over 250 deals in various stages of negotiation, including with several owners who have either signed or are in negotiation to sign development rights agreements for five or more locations each. The brand just celebrated the second Hyatt Studios groundbreaking for a location in Huntsville, Alabama.

Setting the brand apart from its competition, each Hyatt Studios hotel will offer a best-in-class 24/7 marketplace, free high-speed internet and streaming, EV charging stations, and simplified technology that further enhances the brand’s efficient operating model.

With over 3,000 rooms in the pipeline, Hyatt Studios hotels represent several new submarkets for Hyatt. Since Hyatt’s last announcement in late-2023, Hyatt has executed agreements for the following deals:

• Hyatt Studios Barrie, Ontario (Canada)
• Hyatt Studios Front Royal (Virginia)
• Hyatt Studios Oxford (Mississippi)
• Hyatt Studios Chesapeake (Virginia)
• Hyatt Studios Charlottesville (Virginia)
• Hyatt Studios Jacksonville Town Center (Florida)
• Hyatt Studios Billings (Montana)
• Hyatt Studios El Centro (California)
• Hyatt Studios Lehigh Valley (Pennsylvania)
• Hyatt Studios Pooler Savannah Airport (Georgia)
• Hyatt Studios Harrisonburg (Virginia)
• Hyatt Studios Ridgeland (Mississippi) 

Grand Hyatt is expected to expand by more than 10 locations over the next two years

Known for its world-class dining, luxurious spas, fitness centers, bold architecture and captivating settings for meetings and events, the Grand Hyatt brand creates exceptional experiences for all guests at the intersection of local culture and global business. Key rebrands and developments in priority markets across the globe include:

Rebrands & Renovations:

• Grand Hyatt Indian Wells Resort & Villas (expected to rebrand in September 2024) will rebrand from Hyatt Regency Indian Wells Resort & Spa after an extensive $60 million renovation, including transformed guest rooms, suites, and luxury villas, as well as new restaurant concepts and an enhanced pool experience.
• Grand Hyatt Scottsdale Resort (expected to rebrand in late 2024) will be the first Grand Hyatt hotel in Arizona after undergoing a $110 million renovation to transform and rebrand from Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch.
• Grand Hyatt Singapore is slated to reopen in phases from Q3 2024 following extensive renovations.

New Builds:

• Grand Hyatt Kunming (expected to open August 2024) – a 331-room property located in the capital and largest city of Yunnan Province, China, just steps away from iconic landmarks like the Golden Horse and Jade Rooster Archway.
• Grand Hyatt Deer Valley (expected to open in late 2024) will mark the debut of the Grand Hyatt brand in Utah and will be located at the famed Deer Valley Resort in the highly anticipated Deer Valley East Village.
• Grand Hyatt Grand Cayman Hotel & Residences (expected to open in 2025) will mark the first Grand Hyatt branded hotel in the Cayman Islands and offer 351 guestrooms and nearly 10,000 sq. ft of indoor meeting space ideally situated on Grand Cayman’s famous Seven Mile Beach.
• Grand Hyatt Mexico City Santa Fe (expected to open in 2025) – this 275-room hotel will be the first urban Grand Hyatt property in Mexico and the second Grand Hyatt hotel in the region.
• Grand Hyatt The Red Sea (expected to open in 2025) – this 430-room hotel will be the first Grand Hyatt property on Shaura Island, the hub of the ambitious Red Sea Project on Saudi Arabia’s west coast.
• Grand Hyatt Los Cabos (expected to open in 2026) will mark the first Grand Hyatt hotel in Mexico’s Baja California Sur, situated within the OLEADA Pacific Living & Golf private resort community. This property will offer 1,200 acres of luxury experiences with approximately 20,000 sq ft of indoor meeting space in addition to an outdoor event lawn and a world-class 18-hole golf course designed by Golf Hall of Famer, Ernie Els.
• Grand Hyatt St. Lucia (expected to open in 2026) will offer 345 rooms and be the first Grand Hyatt hotel on the island. The property will feature more than 20,000 sq ft of meeting space to accommodate meetings and events of any size.

Hyatt’s Inclusive Collection creates more travel opportunities for leisure guests, groups, and World of Hyatt members in new markets

Hyatt’s Inclusive Collection delivers unparalleled experiences with the luxuries and conveniences offered by an all-inclusive. As of the end of Q1, Hyatt’s Inclusive Collection resorts grew to approximately 41,412 rooms across 124 properties, further enhancing Hyatt’s position as the world’s largest portfolio of luxury branded rooms in resort locations. With 10 distinct brands providing personalized hospitality through exceptional service, immersive dining, and more, the collection continues to expand in new and exciting destinations.

• Dreams Madeira Resort Spa & Marina (expected to open in 2024) will mark the entry of Hyatt’s Inclusive Collection into Portugal and feature 366 guestrooms, ranging from standard rooms to luxury villas, as well as an onsite private beach and marina.
• Secrets Playa Esmeralda Punta Cana (expected to open in 2024) – situated on the northeast coast of the Dominican Republic in Miches, this intimate, adults-only resort will feature nine gourmet dining options, including six à la carte restaurants, a buffet, a cafe, a grill by the pool, beach, and a private lounge for Preferred Club guests.
• Secrets Baby Beach Aruba (expected to open in 2025) – this adults-only resort will mark the debut of Hyatt’s Inclusive Collection on the island. Situated alongside Baby Beach, a popular white-sand lagoon close to San Nicolas, the resort will boast architecture that blends into the landscape, offering stunning views of the region.

To learn more about Hyatt’s development projects, visit: https://www.hyatt.com/development/

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 March 31, 2024, the Company's portfolio included more than 1,300 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.

Forward-Looking Statements

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 statements include statements about our plans, strategies, outlook, the number of properties we expect to open in the future and the expected timeline for such openings, the growth of the World of Hyatt loyalty program, pipeline growth and overall growth expectations for 2024 and beyond, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, 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: 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 earthquakes, tsunamis, tornadoes, hurricanes, 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 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 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 successfully execute our strategy to expand our management and hotels services and franchising business while at the same time reducing our real estate asset base within targeted timeframes and at expected values; 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 hotels services 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 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 SEC, including our annual report on Form 10-K, which filings are available from the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. 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 do not undertake or assume any 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240603027107/en/

Media Contact

Rebecca Smith

Rebecca.smith1@hyatt.com

Investor Relations Contact

Tara Louise Atwood

tara.atwood@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

What is Hyatt's current room pipeline?

Hyatt has announced a record pipeline of 129,000 rooms.

How much has Hyatt's room pipeline grown since 2017?

Hyatt's room pipeline has grown by nearly 85% since 2017.

How has the World of Hyatt loyalty program grown?

The World of Hyatt loyalty program has quadrupled its membership since 2017, with a 22% increase year-over-year, reaching 46 million members.

What new brand has Hyatt introduced?

Hyatt has introduced the Hyatt Studios brand, focusing on the upper-midscale extended-stay market.

What regions are seeing new Hyatt property openings?

Hyatt is opening new properties in the Americas, Europe, Africa, the Middle East, and the Asia Pacific.

How many new locations are planned for the Grand Hyatt brand?

More than 10 new locations are planned for the Grand Hyatt brand over the next two years.

What growth has been seen in Hyatt's Inclusive Collection?

Hyatt's Inclusive Collection has grown to approximately 41,412 rooms across 124 properties, with new openings in Portugal, the Dominican Republic, and Aruba.