Leisure Travel Demand Fuels Hyatt’s Rooms Growth in Asia Pacific

Rhea-AI Summary

Hyatt Hotels Corporation (NYSE: H) announced plans to expand its brand portfolio in the Asia Pacific region with a strong pipeline of luxury and lifestyle hotels set to open in late 2022 and 2023. Notable entries include The Unbound Collection by Hyatt in Japan and Andaz in Thailand, coinciding with a rebound in leisure travel. Carina Chorengel, Senior VP for Asia Pacific, expressed confidence in the region's recovery, noting nearly 70% of its global portfolio is Luxury and Upper Upscale, catering to high-end travelers.

Positive

• Expansion into new markets enhances brand visibility.
• Upcoming openings align with the recovery in leisure travel.
• Strong portfolio with nearly 70% in Luxury and Upper Upscale segments.

Negative

• None.

Expanding footprint of luxury and lifestyle hotels and resorts sees Hyatt’s brands entering new markets across the region, offering unique experiences to guests, World of Hyatt members and customers

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) today announced plans for the continued growth of its brand portfolio in Asia Pacific with a robust pipeline of landmark luxury and lifestyle hotels and resorts that are expected to open in late 2022 and 2023, ideally timed to coincide with the emerging rebound of leisure travel in the region. This includes the strategic entry of several brands into new markets, such as the arrival of The Unbound Collection by Hyatt brand in Japan, the Andaz brand in Thailand, and the Hyatt Centric brand in Southeast Asia with a new hotel in Malaysia.

Park Hyatt Jakarta (Photo: Business Wire)

These upcoming openings follow the notable debut of the following hotels earlier this year:

• Alila Kothaifaru Maldives in the pristine Raa Atoll, April 2022
• Park Hyatt Jakarta, marking the arrival of the Park Hyatt brand in Indonesia, July 2022

“Following the relaxation of travel restrictions across much of Asia Pacific, we remain confident in the region’s path to recovery,” said Carina Chorengel, Senior Vice President, Commercial, Asia Pacific, Hyatt. “As people seek to reconnect, explore new destinations, or revisit reliable favorites, we are seeing greater demand for premium accommodations and longer stays at Hyatt hotels. With nearly 70% of our global portfolio classified as Luxury and Upper Upscale, we are well positioned to meet the growing demand from high-end travelers in each segment we serve.”

Hyatt will further expand its portfolio of luxury and lifestyle brands in Asia Pacific, including several brands entering new markets for the first time.

• Fuji Speedway Hotel, the first hotel under The Unbound Collection by Hyatt brand in Japan, will welcome travelers for a one-of-a-kind motorsports experience upon its expected opening in October 2022. Located in Shizuoka and 80 minutes by car from Tokyo, the 120-room hotel is set amid the breathtaking tranquility of Mount Fuji and the legendary Fuji Speedway racing circuit, offering an unforgettable getaway for motorcar lovers and professional racers, business executives, couples and families alike. Reflecting the brand’s emphasis of one-of-a-kind, story-worthy hotels that inspire collectible moments, guests will immerse themselves in the exhilarating history, culture and art of motorsports at the on-site Fuji Motorsports Museum and soak in the onsen natural hot spring filled with water from Mount Fuji.

• Hyatt Centric Kota Kinabalu will be the Hyatt Centric brand’s first hotel in Southeast Asia, offering intrepid explorers the ideal launchpad into Sabah and its abundant natural beauty and indigenous cultures with its prime location in the city’s downtown area. Slated to open in October 2022, the hotel will be crowned with a rooftop swimming pool, restaurant and bar with views of the South China Sea. The hotel’s contemporary design by Kengo Kuma is inspired by the natural forms of a tree. In line with travelers’ increasing desire to support local communities and visit authentic local restaurants and shops, the energetic and passionate team of Sabahan hosts will guide guests through a more in-depth experience of the local culture, food and hidden gems in this stunning corner of Malaysia. All 222 rooms and suites have a private balcony with views of the South China Sea, green hills or the vibrant city center.

• Andaz Pattaya Jomtien Beach will mark the anticipated debut of the Andaz brand in Thailand in the fourth quarter of 2022, delivering a contemporary and unscripted take on the locale. Just two hours by car from Bangkok, the hotel’s location on a tranquil oceanfront sanctuary will introduce guests to a different side of this popular destination while benefiting from easy access to most of Pattaya’s scenic hotspots. Set on lush grounds and carefully built around existing 100-year-old trees, the distinctively local yet modern design of the 204-room resort is inspired by the site’s history as a private estate and the cultural heritage of the nearby coastal villages. With luxury travelers increasingly seeking intimate getaways with fewer crowds and immersive, authentic experiences, guests can enjoy the privacy of unique four-and six-bedroom heritage houses with dedicated butler service and private pools or visit the traditional Tea House, “Ruen Thai,” which is available for ceremonies, monk blessings and meditation, as well as for enjoying an afternoon tea in a peaceful setting. The resort will collaborate with local brands such as Panpuri and artisans to create original experiences that will help guests reconnect with nature and discover Thai culture.

Some of the additional luxury and lifestyle hotel openings planned for 2022 and 2023 include:

• Grand Hyatt Shenzhou Peninsula
• Park Hyatt Kuala Lumpur (debut of the Park Hyatt brand in Malaysia)
• Andaz Macau
• Grand Hyatt Kunming
• Andaz Nanjing Hexi
• Alila Donghu Wuhan

For more information about Hyatt hotels, please visit: www.hyatt.com.

The term “Hyatt” is used in this release 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, 2022, the Company’s portfolio included more than 1,150 hotels and all-inclusive properties in 72 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, 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. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. These statements include statements about Hyatt’s pipeline and future hotel openings, expected leisure demand, and planned growth in the Asia Pacific region and involve known and unknown risks that are difficult to predict. 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, risks associated with the acquisition of Apple Leisure Group ("ALG"), including the related incurrence of material additional indebtedness; our ability to realize the anticipated benefits of the acquisition of ALG as rapidly or to the extent anticipated, including successful integration of the ALG business; the duration and severity of the COVID-19 pandemic and the pace of recovery following the pandemic, any additional resurgence, or COVID-19 variants; the short and long-term effects of the COVID-19 pandemic, including on the demand for travel, transient and group business, and levels of consumer confidence; the impact of the COVID-19 pandemic, any additional resurgence, or COVID-19 variants, and the impact of actions that governments, businesses, and individuals take in response, on global and regional economies, travel limitations or bans, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; the broad distribution and efficacy of COVID-19 vaccines and treatments, wide acceptance by the general population of such vaccines, and the availability, use, and effectiveness of COVID-19 testing, including at-home testing kits; 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; 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 such as earthquakes, tsunamis, tornadoes, hurricanes, 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 property owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and the introduction of new brand concepts; the timing of 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 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; 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 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/20220906005813/en/

Gloria Kennett

Hyatt

gloria.kennett@hyatt.com

Angelina Hue

Hyatt – Asia Pacific

Angelina.Hue@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

What new markets is Hyatt entering in 2022?

Hyatt is entering markets in Japan, Thailand, and Southeast Asia with several new hotels, including The Unbound Collection by Hyatt in Japan and Andaz in Thailand.

How many hotels does Hyatt plan to open in Asia Pacific by 2023?

Hyatt plans to open a robust pipeline of luxury and lifestyle hotels in Asia Pacific through late 2022 and into 2023.

What percentage of Hyatt’s global portfolio is considered luxury?

Nearly 70% of Hyatt's global portfolio is classified as Luxury and Upper Upscale.

What is Hyatt's strategy in response to rising leisure travel demand?

Hyatt is strategically expanding its luxury and lifestyle brand portfolio to meet the increasing demand from high-end travelers.

When is the expected opening for the Fuji Speedway Hotel?

The Fuji Speedway Hotel is expected to open in October 2022.