HYATT HOTELS CORP. reported an almost 85 percent growth in its global pipeline since 2017, reaching a record of 129,000 rooms. During this period, the company doubled its luxury rooms, tripled its resort rooms, and quintupled its lifestyle rooms. Pictured is a rendering of the New Andaz Miami Beach in Miami Beach, Florida.
The company is expanding its brand portfolio both nationally and globally, selecting new and existing markets to enhance its network effect for owners and guests, Hyatt said in a statement.
“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, Hyatt’s president and CEO. "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.”
Meanwhile, the World of Hyatt loyalty program has quadrupled its membership since 2017 and increased by 22 percent by the end of the first quarter compared to the previous year, now boasting 46 million global members. Hyatt claimed that the World of Hyatt has 30 percent more members per hotel than its major competitors.
U.S. portfolio growth
Hyatt's upcoming lifestyle property openings and rebrandings in the U.S. include The Bentley Hotel Southampton in New York, now open and joining the JdV by Hyatt brand in September; Thompson Palm Springs in California, expected to open in September; Andaz Miami Beach in Florida, expected to open by the end of 2024; Thompson Miami Beach in Florida, expected to open in late 2024 and The Digby in Savannah, Georgia, expected to open in 2025 and join The Unbound Collection."
The Bentley Hotel Southampton is owned by Bijal Hospitality, led by Prakash Patel as president and CEO, and Chief Operating Officer Ketal Patel.
Hyatt Studios, Hyatt's foray into the upper-midscale extended-stay segment, currently has over 250 deals in various stages of negotiation, the statement said. This includes agreements with multiple owners who have either signed or are negotiating development rights agreements for five or more locations each. The brand recently marked its second groundbreaking for a location in Huntsville, Alabama. With more than 3,000 rooms in development, Hyatt Studios hotels are expanding into several new submarkets for Hyatt.
Since late 2023, Hyatt has secured agreements for the following deals: Hyatt Studios Front Royal, Chesapeake, Charlottesville, and Harrisonburg in Virginia; Oxford and Ridgeland in Mississippi; Jacksonville Town Center in Florida; Billings in Montana; El Centro in California; Lehigh Valley in Pennsylvania and Pooler Savannah Airport in Georgia.
Among the seven proposed Grand Hyatt locations, Grand Hyatt Deer Valley in Utah is slated to open in late 2024, Hyatt said. The Grand Hyatt Indian Wells Resort & Villas in California will rebrand from Hyatt Regency Indian Wells Resort & Spa following a $64-million renovation. Meanwhile, the Grand Hyatt Scottsdale Resort, expected to rebrand in late 2024, will be Arizona's first Grand Hyatt hotel after a $110-million renovation, transitioning from Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch.
Hyatt's Inclusive Collection resorts totaled approximately 41,412 rooms across 124 properties as of the end of the first quarter of 2024. With 10 distinct brands, the collection continues to expand into new destinations, including Dreams Madeira Resort Spa & Marina in Portugal (expected to open in 2024), Secrets Playa Esmeralda Punta Cana in the Dominican Republic (expected to open in 2024), and Secrets Baby Beach Aruba in the Netherlands (expected to open in 2025).
Hyatt recently reported strong performance in early 2024, with RevPAR and revenue growth driven by pipeline expansion in its core hotel business and global franchise network. Systemwide RevPAR increased by 5.5 percent compared to 2023, while all-inclusive resorts' net package RevPAR saw an 11 percent surge.
