Hyatt’s Transformative Growth Continues with Announcement of Hyatt Studios, Hyatt’s First Upper-Midscale Brand in the Americas

Rhea-AI Summary

Hyatt Hotels Corporation (NYSE: H) has announced the launch of Hyatt Studios, marking its entry into the upper-midscale lodging segment in the Americas. This extended-stay brand has garnered significant interest, with development agreements signed for over 100 hotels, expected to begin construction in 2023 and open by 2024. The brand aims to cater to both extended-stay and transient guests, emphasizing flexibility and adaptability to local market needs. Jim Chu, chief growth officer, highlighted the opportunity to accelerate net rooms growth and enhance direct bookings. Hyatt Studios will compete with hotels in the select service category, offering amenities such as kitchen suites and a complimentary grab-and-go breakfast while maintaining the consistent quality of Hyatt standards.

Positive

• Signed letters of interest for over 100 Hyatt Studios hotels indicate strong market interest.
• Expected construction beginning in 2023 with first openings in 2024, marking rapid growth.
• The new brand targets both extended-stay and transient guests, broadening Hyatt's appeal.
• Flexibility in design and operational model tailored to various market needs enhances adaptability.

Negative

• None.

The Hyatt Studios brand is an extended-stay brand created with the needs of both hotel developers and World of Hyatt loyalty members in mind; announcement supported by signed letters of interest for more than 100 Hyatt Studios hotels

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) today announces plans for Hyatt Studios, the newest addition to Hyatt’s portfolio of brands. The brand, which marks Hyatt’s entry into upper-midscale lodging in the Americas, was conceived through direct collaboration with hotel developers and listening closely to the needs of target guests. The announcement is supported by signed letters of interest in development agreements from multiple developers for more than 100 Hyatt Studios hotels, with construction expected to begin in 2023 and the first hotel expected to open in 2024.

Hyatt Studios is Hyatt’s first upper-midscale brand in the Americas. Created with the needs of both hotel developers and World of Hyatt loyalty members in mind, Hyatt Studios is an extended-stay brand with first hotels expected to open in 2024. (Credit - Hyatt)

The immediate interest from the development community in the Hyatt Studios brand is a testament to Hyatt taking a developer-informed approach to creating this brand, prioritizing scalable construction options and an efficient operating model designed to adapt to local market needs across primary, secondary and tertiary markets alike. The brand is designed to be flexible based on developer needs, accommodating both extended-stay and shorter length-of-stay leisure and business transient guests depending on the hotel’s market and guest base.

“We are proud to launch the Hyatt Studios brand and bring the high-quality experience and level of care promised by the Hyatt brand to smaller markets and submarkets where we don’t have Hyatt hotels,” said Jim Chu, chief growth officer, Hyatt. “We identified a white space for Hyatt, creating a compelling opportunity to significantly accelerate our industry-leading net rooms growth, care for World of Hyatt members on more stay occasions and introduce World of Hyatt to new guests in a new segment which we expect will drive increased direct bookings for all properties across the Hyatt portfolio.”

The Hyatt Studios brand will join the Hyatt Place, Hyatt House and Caption by Hyatt brands in the select service category, offering Hyatt’s signature guest experience with self-serve amenities and in-room offerings. Extended-stay guests can expect everything they need to feel comfortable and live their full lives when away from home, while enjoying the consistent Hyatt quality they expect.

Guestrooms will marry form with function and offer suites with kitchen amenities to provide comfort during extended trips away from home. The Hyatt Studios food and beverage experience will include a complimentary grab-and-go breakfast and a best-in-class, 24-hour market with a wide variety of options to satisfy extended-stay guests – from health-conscious snacks and ready-made meals to sweet and savory staples to fulfill travel cravings, all of which can be prepared and enjoyed in the guestroom’s kitchen featuring a multi-function convection microwave.

“As with all brands in the Hyatt portfolio, Hyatt Studios hotels will appeal to the high-end guest within its segment,” said Amy Weinberg, senior vice president, brand, loyalty & data. “Amidst a sea of interchangeable extended-stay competitors, Hyatt Studios hotels will transcend dated notions of value-driven compromise by inviting guests to enjoy both the coziness of a studio apartment and the positive energy of being in a creative studio, all with the quality and contemporary style that is characteristic of Hyatt.”

Hyatt Studios will be led by industry veteran Dan Hansen, who has served as strategic advisor throughout the brand’s conception.

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 December 31, 2022, the Company’s portfolio included more than 1,250 hotels and all-inclusive properties in 75 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, Hyatt 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

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 expected launch, timing, and offerings of a new upper-midscale brand, the timing of property openings, and our expected net rooms growth. 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 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, 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; the pace and consistency of recovery following the COVID-19 pandemic and the long-term effects of the pandemic, additional resurgence, or COVID-19 variants, including with respect to global and regional economic activity, travel limitations or bans, the demand for travel, transient and group business, and levels of consumer confidence; the ability of third-party owners, franchisees, or hospitality venture partners to successfully navigate the impacts of the COVID-19 pandemic, any additional resurgence, or COVID-19 variants or other pandemics, epidemics or other health crises; 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 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, including with respect to our acquisition of Apple Leisure Group and Dream Hotel Group and the successful integration of each business; 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; 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, 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230418005469/en/

MEDIA CONTACT:  

Nina Alexander-Hurst

Hyatt

nina.alexander-hurst@hyatt.com

INVESTORS CONTACT:

Noah Hoppe

Hyatt

noah.hoppe@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

What is the new brand announced by Hyatt Hotels Corporation?

Hyatt Hotels Corporation announced the launch of Hyatt Studios, its first upper-midscale brand in the Americas.

How many Hyatt Studios hotels are planned?

There are signed letters of interest for over 100 Hyatt Studios hotels.

When is the expected opening date for Hyatt Studios hotels?

The first Hyatt Studios hotels are expected to open in 2024.

How will Hyatt Studios differentiate from competitors?

Hyatt Studios will offer a flexible design and operational model tailored to market needs, plus a quality guest experience.

What amenities can guests expect at Hyatt Studios?

Guests can expect kitchen suites, a complimentary grab-and-go breakfast, and a 24-hour market.