Hyatt Hotels Corporation announced the completed acquisition of London-based Mr & Mrs Smith, a global travel platform that provides direct booking access to a carefully curated collection of more than 1,500 boutique and luxury properties. With this addition to the portfolio, World of Hyatt members will soon have even more rewarding stays and experiences to choose from, including more than 20 new countries for Hyatt such as Fiji, Croatia, Iceland and Anguilla. Hyatt acquired 100 percent of the asset-light Mr & Mrs Smith platform for an enterprise value of £53.0 million in cash consideration. The purchase price represents an attractive acquisition multiple in the high-single digits on projected stabilized earnings.
Hyatt further continues its transformative growth journey on the heels of doubling the number of luxury rooms, tripling the number of resort rooms, and quadrupling the number of lifestyle rooms over the past five years. Hyatt is poised to build upon that momentum with expansive opportunities globally across its brand portfolio and immediate developer interest in Hyatt Studios, Hyatt’s new extended-stay brand entry into the upper-midscale segment in the Americas.
“Our competitive advantage is that we have vast areas of white space for development and a rapidly growing World of Hyatt loyalty member base,” said Jim Chu, executive vice president & global growth officer. “We average four hotels in markets where we have hotels whereas our competition averages 14, meaning fertile territory for developers who don’t have to worry about intra-brand competition.”
Loyal Members Drive High-Quality Revenue for Owners
Hyatt’s growth is fueled by the World of Hyatt loyalty program’s member base, which has grown 260% over the past five years. Data shows that World of Hyatt members are looking for more opportunities to stay with Hyatt – in more segments and more markets. By listening to guests who previously stayed at Hyatt but opted to stay with a competing brand, it was primarily for two reasons: there was no Hyatt hotel within five miles, or they opted to stay a lower chain scale. Hyatt Studios hotels will present a solution to both for guests.
Data also shows that World of Hyatt members enjoy almost 50 percent more stays in a year than non-members and spend over 70 percent more per year with Hyatt than guests who are non-members. Since the launch of the Inclusive Collection, loyalty penetration across legacy Apple Leisure Group resorts in the Americas grew to 21 percent in just one year.
“World of Hyatt members represent high-quality revenue for owners and operators,” said Mark Vondrasek, chief commercial officer, Hyatt. “Our members spend more, stay more and seek out Hyatt for different stay occasions, as evidenced by the significant increase in Brand Explorer awards, which reward guests every time they stay at five different Hyatt brands.”
As part of Hyatt’s previously announced exclusive franchise agreements with Lindner Hotels & Resorts, more than 30 Lindner Hotels and me and all hotels will soon join the JdV by Hyatt brand and the World of Hyatt loyalty program, enabling members to earn and redeem points in 15 new destinations across Europe.
Organic Growth Continues Across All of Hyatt’s Brand Collections
Boundless Collection hotels deliver best-in-class offerings and compelling experiences designed to excite and inspire. Hotels slated to open in 2023 and beyond include:
- Expansion of the Alila brand with Alila Dongao Island in China and Alila Shanghai.
- The international expansion of the Caption by Hyatt brand with Caption by Hyatt Zhongshan Park Shanghai in China, Caption by Hyatt Namba Osaka and Caption by Hyatt Kabutocho Tokyo in Japan, and Caption by Hyatt Sydney in Australia.
- Growth of the Thompson Hotels brand in new markets including Thompson Palm Springs, Thompson Rome and Thompson Shanghai.
- International growth of the Andaz brand with the anticipated debut of the first city-center Andaz hotel in Thailand with Andaz Bangkok and the debut of the Andaz brand in Qatar, with the opening of Andaz Doha slated for late 2023.
- Continued growth of the Hyatt Centric brand in the Asia Pacific region with Hyatt Centric City Centre Kuala Lumpur as well as Hyatt Centric Zhongshan Park Shanghai and Hyatt Centric Xiamen Ocean Front and in Canada with Hyatt Centric Jarvis Street Toronto.
Timeless Collection hotels deliver impeccable service and thoughtful amenities. With robust revenue growth in the group segment during the first quarter, Hyatt continues to strengthen its Timeless Collection brand footprint globally:
- Expansion of the Hyatt Regency brand on the heels of a strong business transient and group travel recovery with Hyatt Regency Baytown-Houston and Hyatt Regency Conroe in Texas, Hyatt Regency Mexico City Insurgentes and Hyatt Regency San Luis Potosí in Mexico, Hyatt Regency Kotor Bay Resort in Montenegro, Hyatt Regency Pravets Resort in Bulgaria, Hyatt Regency Changshu KunCheng Lake, Hyatt Regency Hangzhou International Airport and Hyatt Regency Xian Airport in China as well as Hyatt Regency London Blackfriars in the United Kingdom and Hyatt Regency Madinah in Saudi Arabia.
- The Hyatt Place and Hyatt House brands continued global growth with the anticipated opening of Hyatt Place Asheville (Airport) North Carolina, Hyatt Place Boise/Meridian in Idaho, Hyatt House Mall of America/MSP Airport in Minnesota, Hyatt Place and Hyatt House Mississauga – Airport Corporate Centre in Canada, and the debut of the Hyatt Place brand in Malaysia with Hyatt Place Johor Bahru, Vietnam with Hyatt Place Ha Long Bay, Bai Chay and Indonesia with Hyatt Place Makassar.
- Highly anticipated growth of the Park Hyatt brand with Park Hyatt Kuala Lumpur in Malaysia and Park Hyatt Changsha in China.
- The introduction of Grand Hyatt in new markets with planned openings such as the Grand Cayman and Kunming, China with the anticipated openings of Grand Hyatt Grand Cayman and Grand Hyatt Kunming, in addition to the Murcia region of Spain with the opening of Grand Hyatt La Manga Club Golf & Spa, the brand’s debut in Spain.
- The debut of three Hyatt brands in Kenya by 2024, including Hyatt Regency Nairobi as well as the first dual-branded Hyatt project in Africa, Hyatt Place Nairobi Westlands and Hyatt House Nairobi Westlands.
Inclusive Collection represents the largest collection of luxury all-inclusive resorts in the world and delivers immersive, elevated experiences where everything is seamlessly included. The Inclusive Collection is expected to debut six new resorts by the end of 2024, highlighted by:
- New and exciting brands that continue to elevate the all-inclusive experience, such as the recently announced Impression by Secrets brand with the opening of Impression by Secrets Isla Mujeres.
- Continued expansion of the Secrets brand across the Americas with Secrets Tides Punta Cana, Secrets St. Lucia Resort & Spa, and Secrets Tulum Resort & Beach Club.
- Dreams Estrella del Mar Mazatlan Golf & Spa Resort in Mexico and Dream Madeira Resort Spa & Marina in Portugal.
- The anticipated debut of Zoëtry Halkidiki, marking the first Zoetry-branded property in Greece.
Independent Collection hotels are all unique – from storied properties and vibrant neighborhood locales to immersive retreats. This collection offers travelers enriching experiences in distinct and exciting ways, spotlighted by planned openings that include:
- Continued expansion of The Unbound Collection by Hyatt with Hotel Toranomon Hills, the brand’s second property in Japan, and Kennedy 89, the brand’s first property in Frankfurt, Germany.
- The debut of the JdV by Hyatt brand in India with Ronil and the debut of the JdV by Hyatt brand in China with the FILA HOUSE in Shanghai and the Sonya Hello Kitty Hotel in Hainan.