Our pipeline of new properties demonstrates the strength and resonance of the Hyatt Place and Hyatt House brands with developers, owners, operators, and guests.
CHICAGO (March 23, 2022) – Hyatt Hotels Corporation (NYSE: H) announced today that Hyatt Place and Hyatt House hotels in the Americas continue to outperform in leisure, urban, drive-to, and mixed-use locations, with 48 new hotels in these brands expected to open across the Americas in 16 new markets for Hyatt in 2022 and 2023. With more than 470 Hyatt Place and Hyatt House hotels currently open in the Americas, the brands continue to attract travelers looking for seamless hotel experiences and owners and operators that are committed to delivering brand and operational excellence.
This planned expansion of the Hyatt Place and Hyatt House brands in the Americas will represent more than 6,400 rooms planned by year-end 2023, positively contributing to Hyatt’s industry-leading net rooms growth, which was 19.5% in 2021. This includes growth as a result of Hyatt’s acquisition of Apple Leisure Group (ALG). The anticipated Hyatt Place and Hyatt House hotels in the Americas represent almost 9% of Hyatt’s total pipeline, and Hyatt will welcome more than 20 new owners to the Hyatt family.
Top-Performing Select Service Brands
Hyatt Place and Hyatt House hotels in the Americas continue to deliver strong performance, outperforming peers with an almost 400 basis points market share improvement in 2021 over 2019, with leisure, urban, and drive-to destinations as some of the top performing segments in 2021. Additionally, the Hyatt Place and Hyatt House brands in the Americas led occupancy rates across all regions and Hyatt brands with 65.1% in Q4 2021 or 61.8% for full-year 2021.
“The Hyatt Place and Hyatt House brands continue to perform incredibly well, especially among leisure transient guests, with leisure destinations commanding strong ADR,” said Jim Tierney, senior vice president, development and owner relations, Hyatt. “With an eye toward recovery, we believe these hotels will remain attractive to leisure guests thanks to distribution, value, and amenities. For example, in Q4 2021, we saw business transient demand accelerate due to companies returning to the office and business travelers hitting the road again.”
Thoughtfully Growing in Markets that Matter
The 48 hotels expected to open in the Americas by 2023 will expand the Hyatt Place and Hyatt House brands into locations where Hyatt’s loyal guests and members are traveling and will bring the brands to 44 markets, 16 of which are new markets for Hyatt – including Montréal, Québec, Panama City Beach, Fla., Sacramento, Calif., and Virginia Beach, Va.
“We continue to grow the Hyatt Place and Hyatt House brands in markets that matter to our guests and loyalty members, and in strategic locations where our owners and operators will see meaningful results,” Tierney continued. “From leisure destinations to downtown locations, mixed-use developments to college campuses and airport locations, our pipeline of new properties demonstrates the strength and resonance of the Hyatt Place and Hyatt House brands with developers, owners, operators, and guests.”
Driving Value for Owners & Operators
With a global distribution network and the award-winning World of Hyatt loyalty program, which has nearly tripled in the number of members since 2017 to over 30 million members today, Hyatt continues to offer scale without saturation across its portfolio of brands. The Hyatt Place and Hyatt House brands deliver exceptional performance through differentiated signature experiences, operational efficiency, customizability, and innovations that continue to evolve based on guest and owner feedback.
Global Franchise & Owner Relations Group (FORG)
In March 2021, Hyatt announced the creation of its Global Franchise and Owner Relations Group (FORG), created to provide a dedicated focus towards the performance of franchised hotels and financial growth for owners and operators. The cross-functional organization is data-driven and action-oriented, with scalable and measurable results that drive brand health, guest experiences and revenue.
Hyatt Place & Hyatt House Brand Innovations
The Hyatt Place and Hyatt House brands continue to innovate to enhance the guest experience, further driving guest loyalty and topline revenue for owners and operators. To align with evolving consumer behavior, Hyatt recently introduced all-day mobile menus with consistent options for guests to view at their fingertips before and during their stays.
The brands’ approach to technology has also evolved based on guest, owner, and operator feedback. Today, more than half of Hyatt Place and Hyatt House hotels are enrolled in the switch to Digital Guest Compendium, an app-less digital solution exclusively designed for Hyatt. This solution provides guests with a clean, consistent, and contactless experience to obtain important in-stay information via a QR code unique to each property, and for owners, anticipated reduction in costs and printing needs.
Room keys in Apple Wallet is an industry-first technology offered at more than 25 Hyatt hotels in the U.S., including participating Hyatt Place and Hyatt House hotels, that enables World of Hyatt members to seamlessly and securely tap their iPhone or Apple Watch to unlock their guestrooms and key card-protected common areas, delivering a significantly elevated guest experience. By integrating this added layer of convenience through one’s mobile device, it allows Hyatt hotels to create a positive sticking point in guests’ minds, and as a result, is expected to help owners drive direct bookings, increase profitability, and ultimately earn their long-term loyalty.
Setting a New Global Pipeline Record
Hyatt’s strong pipeline reflects a growing network that supports leisure travelers, business transient guests, and group and corporate customers. As of December 31, 2021, Hyatt had a pipeline of executed management or franchise contracts for approximately 540 hotels or 113,000 rooms globally, inclusive of ALG’s pipeline contribution of approximately 30 hotels, or 9,000 rooms, across six luxury all-inclusive brands. This pipeline represents a 12% expansion since 2020 and an expansion of more than 60% since 2017.
Hyatt will grow its select service portfolio in the Americas, which includes the Hyatt Place, Hyatt House, and Caption by Hyatt brands, with the following 2022-2023 anticipated openings, including the brand debut and opening of the first Caption by Hyatt hotel in Memphis. Caption by Hyatt hotels will combine the design and comfort of an upscale, lifestyle-forward hotel with the seamless, self-guided options of a select-service property.
For more information, please visit hyattdevelopment.com.
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, 2021, the Company’s portfolio included more than 1,150 hotel and all-inclusive properties in 70 countries across six continents. The Company's offering includes the Park Hyatt®, Miraval®, Grand Hyatt®, Alila®, Andaz®, The Unbound Collection by Hyatt®, Destination by Hyatt™, Hyatt Regency®, Hyatt®, Hyatt Ziva™, Hyatt Zilara™, Thompson Hotels®, Hyatt Centric®, Caption by Hyatt, JdV by Hyatt™, Hyatt House®, Hyatt Place®, UrCove, and Hyatt Residence Club® brands, as well as resort and hotel brands under the AMR™ Collection, including Secrets® Resorts & Spas, Dreams® Resorts & Spas, Breathless Resorts & Spas®, Zoëtry® Wellness & Spa 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 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. 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 consummation of the Apple Leisure Group (“ALG”) acquisition, including the related incurrence of material additional indebtedness; our ability to successfully integrate ALG's employees and operations into ours; the ability to realize the anticipated benefits of the acquisition of ALG as rapidly or to the extent anticipated; the duration of the COVID-19 pandemic and the pace of recovery following the pandemic, any additional resurgence, or COVID-19 variants; the short and longer-term effects of the COVID-19 pandemic, including 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 wide acceptance by the general population of such vaccines; 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; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and all-inclusive 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, such as the COVID-19 pandemic, 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 and 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 ALG's membership offering; 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.