Hyatt Announces Record Signings and Pipeline of 127,000 Rooms at Year-End, Fueling Growth Strategy in 2024 and Beyond

Rhea-AI Summary

Hyatt Hotels Corporation (H) has highlighted its expected growth trajectory for 2024 and beyond, with a record pipeline of 127,000 rooms worldwide as of year-end 2023. The company plans to add more than 35 hotels globally within its diverse collection of luxury brands by the end of 2025. Hyatt Studios brand represents approximately 2,000 rooms in the pipeline, including new markets and deals with first-time Hyatt owners. Since going public, Hyatt's portfolio of hotels has nearly tripled, and its development pipeline has quadrupled.

Market Research Analyst

The announcement of Hyatt Hotels Corporation's expansion plans, with a focus on the growth trajectory for 2024 and beyond, is a clear indicator of the company's strategic direction towards an asset-light, high-margin business model. The significant increase in the development pipeline by nearly 40% of the existing room inventory points to an aggressive expansion strategy, particularly in the luxury, resort and lifestyle segments, which now represent 45% of Hyatt's total portfolio. This shift towards high-end offerings aligns with consumer trends favoring experiences and personalized services, potentially leading to higher RevPAR (Revenue Per Available Room) and ADR (Average Daily Rate).

Hyatt's expansion into new markets and the introduction of the Hyatt Studios brand, targeting the upper-midscale extended-stay segment, demonstrates diversification within the company's portfolio. This is likely to attract a broader customer base and fill market gaps, especially in secondary and tertiary markets. The emphasis on the World of Hyatt loyalty program, which has seen significant growth, is a strategic move to enhance customer retention and increase direct bookings, thereby reducing reliance on third-party booking platforms and improving profit margins.

The expansion of Hyatt's brand presence globally, with new properties in Europe, Asia Pacific and Latin America, indicates a focus on international growth. This could mitigate risks associated with market-specific downturns and capitalize on emerging market opportunities. However, it's important to consider geopolitical risks and economic fluctuations that could impact the success of these ventures.

Financial Analyst

Hyatt's record pipeline and strategic acquisitions funded by real-estate dispositions suggest a robust capital reallocation strategy aimed at fostering long-term growth while maintaining a flexible balance sheet. Their asset-light approach, focusing on management and franchising agreements, is likely to result in lower capital expenditures and higher return on invested capital (ROIC) over time.

The company's growth in membership for its loyalty program, which is outpacing competitors, indicates a strong brand value that could lead to increased customer lifetime value and lower customer acquisition costs. This, combined with the growth in high-margin segments such as luxury and lifestyle, could lead to improved EBITDA margins.

Investors should monitor the execution of Hyatt's expansion plans and the performance of newly opened properties, as these will be critical in assessing the company's ability to convert its pipeline into revenue-generating assets. Furthermore, the impact of this expansion on Hyatt's market share and competitive positioning within the hospitality industry will be an important factor in evaluating the company's future financial performance.

Hospitality Industry Expert

The hospitality industry is witnessing a paradigm shift towards personalized experiences and niche offerings, as evidenced by Hyatt's strategic growth in luxury, resort and lifestyle portfolios. The company's focus on these segments is in line with industry trends where high-net-worth individuals and experience-driven travelers are seeking more than just a place to stay.

Hyatt's introduction of the Hyatt Studios brand is a response to the increasing demand for extended-stay accommodations that offer the comforts of home. This move is particularly strategic as it addresses the needs of a growing segment of travelers who prefer longer stays, whether for business or leisure and seek the convenience and amenities of an extended-stay hotel.

The global expansion of Hyatt's brand portfolio, including the entry into new markets with the Inclusive Collection resorts, demonstrates the company's commitment to catering to diverse traveler preferences. The growth of the Inclusive Collection is particularly noteworthy as it taps into the growing all-inclusive segment, which appeals to travelers seeking a hassle-free vacation experience. The success of these initiatives will hinge on Hyatt's ability to maintain its brand standards and deliver exceptional guest experiences across all properties, regardless of location.

The new Hyatt Studios brand represents approximately 2,000 rooms in pipeline including new markets and deals with first-time Hyatt owners

CHICAGO--(BUSINESS WIRE)-- Hyatt Hotels Corporation (NYSE: H) highlighted today its expected growth trajectory for 2024 and beyond, underscored by a record year of deal signings in 2023. Hyatt’s commitment to be the preferred brand for guests, customers and owners has resulted in a record pipeline of 127,000 rooms worldwide as of year-end 2023, which is expected to fuel asset-light earnings into the future. This record pipeline represents nearly 40% of existing rooms in the Hyatt portfolio.

"We have been very intentional in our growth strategy and acquisitions, always prioritizing guest, customer and owner preference as well as differentiation, and taking bold steps to stay ahead of market trends,” said Mark Hoplamazian, president and chief executive officer, Hyatt. “Guided by our purpose of care, we believe our most exciting chapter is ahead of us, and we are committed to reinforcing our position as the preferred hospitality brand.”

Since going public, Hyatt has experienced remarkable growth; its portfolio of hotels has nearly tripled while its development pipeline has quadrupled. This expansion, driven by organic growth, conversions, and strategic acquisitions funded by real-estate dispositions, has resulted in Hyatt’s premium portfolio of brands serving guests at the high-end of each segment.

This has directly translated into significant growth in the World of Hyatt platform which has quadrupled in membership in the last five years. With more than 30% more members per hotel than its larger hotel competitors, the fastest-growing loyalty program in the industry focuses on more personalized guest care and increased revenue for owners.

Strategic Growth in Luxury, Resort, and Lifestyle Portfolios

Hyatt is uniquely positioned in the industry to be the preferred brand for the high-end guest, driven by significant expansion of luxury, resort and lifestyle hotels. Since the end of 2017, the addition of nearly 90,000 rooms in these categories now represents 45% of Hyatt's total portfolio. This growth has doubled the number of luxury rooms, tripled resort rooms, and quadrupled lifestyle rooms. By the end of 2025, Hyatt plans to add more than 35 hotels globally within its diverse collection of luxury brands. Growth highlights in luxury, resort, and lifestyle portfolios include:

• The Park Hyatt brand is set to enter key global markets in 2024 with Park Hyatt London River Thames (United Kingdom), Park Hyatt Johannesburg (South Africa), Park Hyatt Changsha (China) and Park Hyatt Kuala Lumpur (Malaysia). The brand will also expand its presence in Mexico with Park Hyatt Cancun and Park Hyatt Los Cabos at Cabo Del Sol expected to open in 2025, and Park Hyatt Mexico City, expected to open in 2026.
• Hyatt continues to strengthen its position as the world’s largest portfolio of luxury all-inclusive resorts, including the recent launch of the ultra-luxury brand, Impression by Secrets. The Inclusive Collection is also set to expand brand presence in Europe with two new market entries in 2024: Zoetry Halkidiki Resort & Spa in Greece and Dreams Madeira Resort, Spa & Marina in Portugal.
• The Thompson Hotels brand is also gaining significant momentum in Europe, with upcoming brand debuts in highly sought-after destinations such as Thompson Rome (Italy), Thompson Vienna (Austria) and Thompson Seville (Spain). Additionally, Hyatt plans to bring the Thompson Hotels brand to Asia Pacific with Thompson Shanghai Expo (China), expected to open in 2025. The brand continues to grow across the Americas with Thompson Houston, Thompson Palm Springs and Thompson South Beach, all expected to open this year, and Thompson Puerto Vallarta (Mexico) in 2027.

New Markets and New Developers with Hyatt Studios

To serve Hyatt’s guest base on more stay occasions and introduce new guests to the Hyatt portfolio, Hyatt is rapidly growing its first upper-midscale extended-stay brand in the Americas, Hyatt Studios. Leveraging Hyatt's proven success in select-service hotels, the Hyatt Studios brand extends the renowned Hyatt experience and commitment to quality into markets where traditional Hyatt properties may not be located. Announced just last year, the Hyatt Studios brand has gained significant interest, with approximately 200 deals in various stages of negotiation with both single-unit developers and multi-unit developers, including executed deals representing approximately 2,000 pipeline rooms across North America. This is a testament to the desire from both developers and guests for a Hyatt brand that can operate in secondary, suburban and tertiary markets alike.

Upcoming properties, nearly half of which represent new markets for Hyatt and deals with first-time Hyatt owners, include:

• Hyatt Studios Foley in Alabama
• Hyatt Studios Huntsville in Alabama
• Hyatt Studios Mobile / Tillman’s Corner in Alabama
• Hyatt Studios Marysville in California
• Hyatt Studios Murrieta in California
• Hyatt Studios Denver Airport 68th & Yampa in Colorado
• Hyatt Studios Bensenville in Illinois
• Hyatt Studios Greenwood in Indiana
• Hyatt Studios Kokomo in Indiana
• Hyatt Studios Louisville in Kentucky
• Hyatt Studios Portland ME Airport in Maine
• Hyatt Studios Flowood in Mississippi
• Hyatt Studios Mississauga in Ontario, Canada
• Hyatt Studios Knoxville Cedar Bluff in Tennessee
• Hyatt Studios Sevierville in Tennessee
• Hyatt Studios Texarkana in Texas

Global Expansion: Brand Growth Across All Collections

“In many cases, we’re working with owners who either own or plan to develop properties across all four of our brand portfolios,” said Jim Chu, executive vice president and chief growth officer, Hyatt. “Our growth is only possible because of our strong relationships with both managed and franchised owners. Whether it’s winning deals in highly competitive markets like Park City, Utah with Grand Hyatt Deer Valley or innovating with one-of-a-kind projects like Grand Hyatt Kuwait Residences, we work tirelessly to be the preferred brand for owners and developers.”

Independent Collection hotels are all unique – from storied properties and vibrant neighborhood locales to immersive retreats. Growth updates include:

• The Unbound Collection by Hyatt brand is growing globally, including Hotel Flüela Davos, which opened in 2023 as the brand’s entry into Switzerland and the only European Hyatt property in an alpine ski destination. Additionally, Kennedy 89 in Frankfurt, Germany is slated for fall of 2024 and The Keraton at the Plaza in Jakarta is slated for 2025, which will mark the debut of The Unbound Collection by Hyatt brand in Indonesia.
• The JdV by Hyatt brand, which includes the exclusive collaboration with Lindner Hotels, will expand further in Germany this year with me and all hotel berlin east side and Lindner Hotel Boltenhagen, which opened in October 2023. The JdV by Hyatt brand is a prime opportunity for boutique conversions and continues to extend Hyatt’s brand presence in new markets such as Southampton, NY with the Bentley Hotel slated to open in 2024.
• The Destination by Hyatt brand is expected to debut in Canada this summer in the year-round outdoor adventure destination of Ramara, Ontario, as well as in Saint Lucia with Cas En Bas Beach Resort, expected to open in 2024 as the first Destination by Hyatt branded resort and residences on the island.

Timeless Collection hotels deliver the comforts of a home away from home with a consistently elevated experience. Expansion of the collection is expected around the following:

• Fueled by a recent brand refresh, the Hyatt Regency brand will continue its growth with Hyatt Regency Panama City, the first Hyatt Regency hotel in Panama, expected to open in 2024.
• The Grand Hyatt brand is entering new destinations with the recently opened Grand Hyatt Kuwait Residences pioneering residential offerings in the country, and the highly anticipated Grand Hyatt Deer Valley, expected to open later this year as the newest luxury hotel in the famed ski destination of Park City, Utah. Grand Hyatt Mexico Santa Fe is slated to open in 2025, as the first urban Grand Hyatt property in Mexico and Grand Hyatt Los Cabos (Mexico) is expected in 2026.
• The Hyatt Place and Hyatt House brands continue to be key organic drivers for Hyatt across the globe. In Asia Pacific, the brands are marking the first entry into new cities with Hyatt Place Kuala Lumpur Bukit Jalil (Malaysia), which opened in the fall 2023, and Hyatt Place Ha Long Bay Bai Chay (Vietnam), Hyatt Place Makassar (Indonesia), and Hyatt House Tokyo Shibuya (Japan) – all expected to open before 2025. In the United Kingdom, Hyatt Place Leeds and Hyatt House Leeds will be the city’s first dual-branded Hyatt development (opening in fall of 2024), and in North America, new Hyatt Place and Hyatt House hotels are expected to open soon in key U.S. leisure markets such as Orlando, Fla., Raleigh, NC, Mariposa, Calif. near Yosemite, Casper, Wyo., Nashville, Tenn. and Daytona Beach, Fla. In Latin America, Hyatt Place Piedras Negras (Mexico), is expected to open in 2026, and Hyatt Place San Jose Cariari (Costa Rica) is expected to open in 2025.

Boundless Collection hotels deliver best-in-class offerings and compelling experiences designed to excite and inspire. New properties in global markets include:

• The Hyatt Centric brand is expected to expand in Canada with Hyatt Centric Toronto City Centre, anticipated to open this summer, Hyatt Centric Victoria – Old Town slated to open in 2026, and Hyatt Centric Winnipeg Downtown, an adaptive reuse project slated for 2025. The brand will debut in new Asia Pacific markets in 2024 with Hyatt Centric Zhongshan Park Shanghai (China) and Hyatt Centric City Centre Kuala Lumpur (Malaysia), a 311-room property located on Jalan Sultan Ismail. In Latin America, the brand will also debut in two countries with Hyatt Centric Escazu San Jose (Costa Rica) and Hyatt Centric Santo Domingo (Dominican Republic) – both expected to open in 2024. In 2025, Hyatt will add a hotel in a new market in Mexico with Hyatt Centric Queretaro.
• The Caption by Hyatt brand continues to gain momentum globally with the brand’s planned debut in Asia Pacific with Caption by Hyatt Zhongshan Park Shanghai (China) and in Japan Caption by Hyatt Namba Osaka in 2024, followed by Caption by Hyatt Kabutocho Tokyo in 2025. In addition, Caption by Hyatt brand presence in Tennessee continues to grow with Caption by Hyatt Downtown Nashville/The Gulch, expected to open in 2025, and Caption by Hyatt Chattanooga Downtown, expected to open in 2026.
• Through the integration of Dream Hotel Group, 2024 is expected to bring Dream Valle de Guadalupe, the brand’s first property in Mexico and a new market for Hyatt.

Inclusive Collection resorts deliver immersive, elevated experiences where everything is seamlessly included. Upcoming expansion includes:

• Secrets Resorts & Spas is expected to expand its footprint in Mexico and the Caribbean in 2024 with Secrets Tides Punta Cana (Dominican Republic), a 668-suite seaside haven in Uvero Alto, and Secrets Playa Blanca Costa Mujeres, a 507 all-suite resort 12 miles north of Cancun in Mexico.
• Dreams Resorts & Spas is expected to add two new resorts in Mexico in 2024 with the upcoming Dreams Grand Island in Cancun and Dreams Estrella Del Mar Mazatlan, a 350-room property, which also marks a new destination for the brand.
• Hyatt Vivid Grand Island, which will be the first property under the recently announced adults-only Hyatt Vivid brand, is expected to open in 2024 adjacent to Dreams Grand Island, combining 19 culinary concepts, a 26,000 square foot spa, multiple pools, a beach club, and more.

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 September 30, 2023, the Company’s portfolio included more than 1,300 hotels and all-inclusive properties in 76 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 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 long-term effects of the COVID-19 pandemic, 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; 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; 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 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.

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Media Contact

Dana Fioravanti

dana.fioravanti@hyatt.com

Investor Contact

Tara Louise Atwood

tara.atwood@hyatt.com

Source: Hyatt Hotels Corporation

FAQ

How many rooms were in Hyatt's pipeline as of year-end 2023?

The record pipeline represented 127,000 rooms worldwide.

What is the ticker symbol for Hyatt Hotels Corporation?

The ticker symbol is H.

What is the expected growth trajectory for Hyatt Hotels Corporation?

Hyatt plans to add more than 35 hotels globally within its diverse collection of luxury brands by the end of 2025.

How many rooms does the Hyatt Studios brand represent in the pipeline?

Approximately 2,000 rooms.

How much has Hyatt's portfolio of hotels grown since going public?

It has nearly tripled.

How much has Hyatt's development pipeline grown since going public?

It has quadrupled.