Regional pipeline led by the planned integration of Lindner agreement of franchised properties, expansion of All-Inclusive resorts and organic growth in luxury brands
Hyatt Hotels Corporation (NYSE: H) today shared that 45 percent of the properties that joined Hyatt’s system in 2022 were based in EAME markets and the region’s contribution to the Hyatt growth journey continues into 2023 through a strong pipeline with ten percent of Hyatt’s 117,000 rooms record pipeline, as of fourth quarter earnings, expected to join the portfolio in EAME markets. Properties classified as lifestyle hotels make up nearly one fourth of the EAME pipeline, expanding the portfolio to more sought-after leisure destinations and strengthening the World of Hyatt value proposition.
Notable drivers for the expected regional growth include several large-scale leisure portfolio integrations, adding a substantial number of rooms to the World of Hyatt program and the hyatt.com booking flow as well as organic growth for the Park Hyatt, Grand Hyatt, Hyatt Regency and The Unbound Collection by Hyatt brands slated for 2023 and the years ahead. While growing with legacy brands in the business travel segment, globally Hyatt has doubled the number of luxury rooms, tripled the number of resorts and quadrupled the number of lifestyle rooms in its portfolio in the last five years. And now Hyatt has more luxury branded hotels in resort locations than any other hospitality company in the world.
“Through our grow with intent strategy, Hyatt has built an industry-leading luxury, lifestyle and leisure portfolio in Europe, Middle East and Africa. I am particularly proud of our regional contribution to our global growth journey, as 45 percent of the 120 hotels that joined the Hyatt portfolio were based in region,” said Javier Águila, group president EAME, Hyatt. “I have no doubt that EAME will continue to be a strong contributor to Hyatt’s global growth journey in the coming years. Owners appreciate our combination of personal connections, strong brands and global performance track record.”
Inclusive Collection Growth in Europe
Having introduced the Inclusive Collection in May 2022, Hyatt offers one of the largest portfolios of luxury all-inclusive resorts in the world. Following the integration of more than 20 European resorts into the World of Hyatt program in December 2022, additional properties are expected to join the program in the near future, bringing additional exceptional and immersive all-inclusive experiences to global travelers. Hyatt continues growing its all-inclusive brand footprint with plans for five Inclusive Collection resorts to open in Bulgaria in 2023 and 2024, as well as the expected debut of the Dreams brand in Portugal, with Dreams Madeira Resort Spa & Marina slated to open in 2024.
“Hyatt’s Inclusive Collection redefines and elevates the all-inclusive experience with enhanced amenities, endless hospitality and thoughtful touches that exceed expectations,” said Erica Doyne, senior vice president of marketing & communications, Inclusive Collection, Hyatt. “As we continue to thoughtfully expand the Inclusive Collection brands in markets that matter to guests, members, owners and investors, our slate of planned resort openings reflects the Inclusive Collection’s potential as a major growth driver for our leisure presence in Europe.”
Introduction of the JDV by Hyatt brand to the German Market
The JDV by Hyatt brand is slated to arrive in Germany in the near future, with the planned integration of more than 30 vibrant ‘Lindner Hotels & Resorts’ and ‘me and all hotels’ properties into the World of Hyatt loyalty program. The properties have been visible on hyatt.com since December 2022 and will expand Hyatt’s lifestyle brand footprint in Europe by 5,500 rooms.
Taking this portfolio deal into account, Hyatt has tripled the number of hotels in its portfolio in Europe over the past four years. The collaboration represents the next phase of Hyatt’s transformative brand growth in Europe, expanding Hyatt’s brand footprint into 15 new markets, significantly growing opportunities for World of Hyatt members and scaling up the portfolio in Germany, a key source market that strengthens Hyatt’s network effect throughout Europe.
Organic Luxury, Lifestyle & Leisure Growth in EAME
Hyatt boasts six consecutive years of industry-leading organic net rooms growth. Supported by a healthy pipeline in Europe, Middle East and Africa, Hyatt is stepping into new leisure destinations, introducing Hyatt’s thoughtful design, innovative food and beverage offerings and personalized services to new audiences.
The Park Hyatt brand is set to reestablish its presence in South Africa with Park Hyatt Johannesburg in late 2023 and make its entrance to Morocco with Park Hyatt Marrakech, offering luxury resort elegance with Moroccan charm. Notably, Park Hyatt London is in the pipeline for 2024.
In 2023, the Grand Hyatt brand will be introduced to Spain with Grand Hyatt La Manga Club and Resort in the second half of 2023 and expand its presence in Kuwait with Grand Hyatt Kuwait Residences.
The Hyatt Regency brand is set to expand its resort footprint in Europe with Hyatt Regency Pravets Resort in Bulgaria and Hyatt Regency Resort Kotor Bay in Montenegro expected to join the portfolio in summer 2023.
Successful growth driver The Unbound Collection by Hyatt will receive two new in additions in 2023, with Hotel Flüela Davos and a project in development in Crans Montana, both in Switzerland, closely followed by the Grand Hansa Hotel in Finland, slated to join the portfolio in early 2024.
For more information about Hyatt hotels, please visit: www.hyatt.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.
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About Inclusive Collection, part of World of Hyatt
One of the largest portfolios of luxury all-inclusive resorts, the Inclusive Collection, part of World of Hyatt, includes nine distinct resort and hotel brands designed to celebrate every moment for every lifestyle and stage of life including 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. With properties located throughout Mexico, Jamaica, Curacao, Dominican Republic, Costa Rica, Colombia, Panama, St. Martin, St. Lucia, Spain, and Greece. The Inclusive Collection continuously raises the all-inclusive concept to a new level of luxury with award-winning properties that offer elevated accommodations, desirable locations, and thoughtful inclusions. Inclusive Collection properties are joining the World of Hyatt® loyalty program in phases. For more information, visit the Inclusive Collection, part of World of Hyatt at www.hyattinclusivecollection.com.
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, 2022, the Company’s portfolio included more than 1,250 hotels and all-inclusive properties in 75 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, Hyatt 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 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 include statements about Hyatt’s growth plans, expected openings, pipeline, planned acquisition, and positioning in the luxury, lifestyle and leisure segments. 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 acquisition of Apple Leisure Group, including successful integration of the Apple Leisure Group business; the duration and severity of the COVID-19 pandemic or any additional resurgence and the pace of recovery following the pandemic or any additional resurgence; 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 actions taken by governments, businesses, or individuals in response to the COVID-19 pandemic or any additional resurgence on global and regional economies, travel limitations or bans, and economic activity; the ability of third-party owners, franchisees, or hospitality venture partners to successfully navigate the impacts of the COVID-19 pandemic or any additional resurgence; 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.
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Hyatt – Central and Eastern Europe