Hyatt

Last updated

Hyatt Hotels Corporation
Company type Public
ISIN US4485791028
Industry Hospitality, travel, tourism
FoundedSeptember 27, 1957;66 years ago (1957-09-27)
Founders
Headquarters 150 North Riverside,
Chicago, Illinois
,
U.S.
Number of locations
1,335 hotels; 322,141 rooms (2023)
Area served
Worldwide
Key people
 Thomas Pritzker (Chairman)
Mark Hoplamazian (President and CEO)
Products Hotels and resorts
Services
RevenueIncrease2.svg US$6.67 billion (2023)
Decrease2.svgUS$305 million (2023)
Decrease2.svgUS$220 million (2023)
Total assets Increase2.svgUS$12.8 billion (2023)
Total equity Decrease2.svgUS$3.56 billion (2023)
Number of employees
c. 206,000 (2023)
Subsidiaries Apple Leisure Group
Mr and Mrs Smith
Website hyatt.com
Footnotes /references
[1]

Hyatt Hotels Corporation, commonly known as Hyatt Hotels & Resorts, is an American multinational hospitality company headquartered in the Riverside Plaza area of Chicago that manages and franchises luxury and business hotels, resorts, and vacation properties. Hyatt Hotels & Resorts is one of the businesses managed by the Pritzker family. Hyatt has more than 1350 hotels and all-inclusive properties in 69 countries, across South America, North America, Europe, Asia, Africa and Australia

Contents

The Hyatt Corporation came into being upon purchase of the Hyatt House, at Los Angeles International Airport, on September 27, 1957. In 1969, Hyatt began expanding internationally.

Hyatt has expanded its footprint through a number of acquisitions, including the acquisition of AmeriSuites (later rebranded Hyatt Place) in 2004, Summerfield Suites (later rebranded Hyatt House) in 2005, Two Roads Hospitality in 2018, Apple Leisure Group in 2021, Dream Hotel Group in 2023 and Standard International in 2024. [2] [3] [4] [5]

History

150 North Riverside in Chicago, Illinois, the headquarters of Hyatt. 150 North Riverside, Wolf Point, Chicago.jpg
150 North Riverside in Chicago, Illinois, the headquarters of Hyatt.

Foundation and early years

The first Hyatt House was opened in 1954 by entrepreneurs Hyatt Robert von Dehn (1904–1973) and Jack Dyer Crouch (1915–1990) as a motel near Los Angeles International Airport. [6] In 1957, the hotel was purchased by entrepreneur Jay Pritzker for US$ 2.2 million. His younger brother, Donald Pritzker, also took on an important role in the company. Considering the growing use of air travel for business, the Pritzker brothers realized that locating a high quality hotel near a major airport was a valuable business strategy. Within two years, they opened Hyatt House Hotels near San Francisco International Airport and Seattle–Tacoma International Airport. [7]

The company went public in 1962 as Hyatt Corporation. It had two divisions - Hyatt House Hotels and Hyatt Chalet Motels (renamed Hyatt Lodges in 1966). [8]

In 1967, the company opened the Regency Hyatt House in Atlanta, Georgia (today named the Hyatt Regency Atlanta). The futuristic hotel was designed by Atlanta architect John Portman, who would go on to design many other hotels for the chain. It featured a massive indoor atrium, which soon became a distinctive feature of many Hyatt properties. [9]

In 1968, Hyatt International was formed, to operate hotels outside the United States. [10] It would soon become a separate company. In 1969, Hyatt opened its first international hotel, when it was awarded the management contract for the President Hotel in Hong Kong, which was renamed the Hong Kong Hyatt Hotel (later known as the Hyatt Regency Hong Kong). [11]

In 1972, Hyatt formed Elsinore Corporation, a subsidiary to operate the Four Queens Hotel and Casino and the Hyatt Regency Lake Tahoe Resort, Spa & Casino. Donald Pritzker died in 1972 and Jay Pritzker continued to run the company. [12]

Hyatt became a private company in 1979, when the Pritzkers bought the outstanding shares. [10] Elsinore was spun off as a public company. The company opened the Playboy Hotel and Casino as a joint venture with Playboy Enterprises. [13] [14]

Alongside the Hyatt Regency brand, the company introduced the Grand Hyatt brand in 1980, with the opening of the Grand Hyatt New York (now Hyatt Grand Central). [8] That same year, the boutique Park Hyatt brand was also introduced. [8]

The Pritzkers took Hyatt International private as well, in 1982. [10] However, Hyatt and Hyatt International remained two separate companies until June 2004, when substantially all of the hospitality assets owned by the Pritzker family business interests, including Hyatt Corporation and Hyatt International Corporation, were consolidated under a single entity called Global Hyatt Corp. On June 30, 2009, Global Hyatt Corporation changed its name to Hyatt Hotels Corporation. [15]

Development since the 2000s

In December 2004, Hyatt Hotels Corporation acquired AmeriSuites, an upscale chain of all-suite business class hotels from affiliates of the Blackstone Group, a New York-based private equity investment firm. Blackstone had inherited AmeriSuites from its 2004 acquisition of Prime Hospitality. [3] The AmeriSuites chain was rebranded and called Hyatt Place, a competitor to the limited-service products Marriott International's Courtyard by Marriott and Hilton Worldwide's Hilton Garden Inn.

In December 2005, Hyatt acquired limited service company Summerfield Suites from the Blackstone Group. Blackstone had inherited Summerfield Suites from its purchase of Wyndham International. In January 2012, Hyatt Summerfield Suites were rebranded as Hyatt House in 2012 to compete in the "upscale extended stay market" against Residence Inn, Homewood Suites, and Staybridge Suites. [16]

Hyatt launched its first lifestyle brand, Andaz, in April 2007. [17] Hindi for the word 'style', Andaz is positioned as a luxury brand, with the first hotel being a rebrand of the Great Eastern Hotel in London, followed by hotels in San Diego, West Hollywood, Shanghai [18] and New York City.

In August 2009, it was reported that Hyatt Hotels Corporation filed plans to raise up to $1.15 billion in an initial share sale. That November Hyatt completed an initial public offering and began trading publicly on the New York Stock Exchange under the symbol H. [19] According to the filing Mark S. Hoplamazian was to serve as CEO and Thomas Pritzker as Executive Chairman. [20] The public offering was a result of the acrimonious breakup of the Pritzker family empire. Accused of looting family trusts, Thomas and cousins Penny and Nicholas took control of the family businesses when they and other family members were sued by cousin Liesel Pritzker, claiming fraud and seeking damages of over US$6 billion. [21]

On September 1, 2011, Hyatt acquired Hotel Sierra, which had 18 properties in 10 states. Along with Hyatt Summerfield Suites hotels, several of these properties were rebranded as Hyatt house in January 2012. [22]

In November 2013, Hyatt introduced their first all-inclusive resort brands, Hyatt Ziva and Hyatt Zilara, with the first resorts being opened in Cancun, Puerto Vallarta, Los Cabos and Rose Hall, Montego Bay, Jamaica.

On October 28, 2015, Hyatt announced that they were in advanced talks to acquire Starwood Hotels in a cash and stock transaction. The transaction was not completed, and Starwood was acquired by Marriott International instead. [23]

In 2018, Hyatt saw expansion with the acquisition of Two Roads Hospitality. This added the Joie de Vivre, Destination, Alila, and Thompson hotel brands to the Hyatt portfolio, a growth of 85 hotels in 23 markets. [24]

In March 2021, Hyatt announced the official opening of Hyatt's 1,000th hotel worldwide, Alila Napa Valley in St. Helena, California. [25]

In August 2021, Hyatt acquired Apple Leisure Group (ALG), a luxury resort-management services, travel and hospitality group, from affiliates of Kohlberg Kravis Roberts and KSL Capital Partners for $2.7 billion in cash. ALG's hotel portfolio consists of over 33,000 rooms operating in 10 countries. The acquisition will extend Hyatt's brand footprint into 11 more European markets. [26]

In November 2022, Hyatt acquired Dream Hotels Group, a lifestyle hotel operator for $125 million, with up to an additional $175 million over the next six years as properties come into the pipeline and open. Dream Hotels Group's portfolio include 12 managed or franchised lifestyle hotels under four brands. [27]

In April 2023, Hyatt acquired Mr and Mrs Smith, a UK-based platform offering direct booking access to over 1,500 boutique and luxury properties worldwide for £53.0 million in cash consideration. [28]

In June 2024, Hyatt acquired the me and all hotels brand from Lindner Hotels AG, for which Hyatt has entered into a strategic collaboration with in 2022, consisting of six lifestyle hotels and over 1,000 rooms in central city locations across Germany. [29]

In August 2024, Hyatt announced the planned acquisition of Standard International, an upscale boutique hotel operator, for $150 million, with up to an additional $185 million over time as additional properties enter the portfolio. The acquisition consists of 21 open hotels and more than 30 future properties under The Standard, Bunkhouse Hotels, Peri Hotels, The StandardX, and The Manner brands. With the transaction, Hyatt will form a new dedicated lifestyle group, managing all lifestyle brands and operations led by Standard International's Executive Chairman Amar Lalvani. [30]

Brands

Hyatt-branded properties have traditionally catered to upscale or business customers; its properties were either full-service or boutique hotels. In 1980, Hyatt added the Grand Hyatt and Park Hyatt brands to its portfolio. In 1995, Hyatt entered the vacation ownership market. Hyatt introduced the Hyatt Place brand, designed as a limited service offering for business travelers, in 2006. Hyatt House was Hyatt's first select-service property, catering primarily to travelers with long-term stays and at a more economical price point. Since then, Hyatt has added a wide range of other brands either through organic growth or via a series of acquisitions, especially in the lifestyle and resort segments. [2]

Today, Hyatt categorizes its brands under four categories: timeless collection (containing Hyatt's classic brands), boundless collection (lifestyle brands), independent collection (soft-branded independent properties) and inclusive collection (all-inclusive hotels).

Timeless Collection

Grand Hyatt logo Grand Hyatt logo.svg
Grand Hyatt logo
Manchester Grand Hyatt San Diego, one of Grand Hyatt's largest hotels with over 1600 rooms Manchester Grand Hyatt Hotel, San Diego.jpg
Manchester Grand Hyatt San Diego, one of Grand Hyatt's largest hotels with over 1600 rooms
Hyatt Regency in Kolkata Hyatt Regency Kolkata.jpg
Hyatt Regency in Kolkata
Hyatt Place in Emeryville Hyatt Place Emeryville-San Francisco Bay Area 2017-05-13.jpg
Hyatt Place in Emeryville
Hyatt House in Denver Hyatt House Denver - Aurora 2021-03-20.jpg
Hyatt House in Denver

Timeless Collection houses Hyatt's signature hotel brands, including: [31]

Boundless Collection

Boundless Collection houses Hyatt's lifestyle hotel brands. Following the acquisition of Standard Hotels announced in August 2024, Hyatt will form a dedicated lifestyle group led by Standard International's Executive Chairman Amar Lalvani overseeing all lifestyle hotel operations. Current brands in the portfolio include:

Independent Collection

Independent Collection houses Hyatt's soft brands of independent hotels, including:

Inclusive Collection

Formerly AMR Collection and AMResorts of Apple Leisure Group, Inclusive Collection houses Hyatt's all-inclusive resort brands following its 2021 acquisition of ALG. Brands include:

Notable properties

Bar of the Park Hyatt Tokyo that featured in the 2003 film Lost in Translation New York Bar Unplugged, Park Hyatt Tokyo (8376387540).jpg
Bar of the Park Hyatt Tokyo that featured in the 2003 film Lost in Translation

Partnerships

In 2013, Hyatt partnered with MGM Resorts International in bringing 12 MGM properties in Las Vegas to Hyatt booking channels, as well as in-depth collaborations with each other's loyalty program. [54] The partnership ended in 2023 when MGM partnered with Marriott International instead.

In 2018, Hyatt began partnering with Small Luxury Hotels of the World, which allowed World of Hyatt members to earn and redeem points during their stays at participating SLH properties. [55] The partnership has since ceased in 2024 following Hyatt's acquisition of Mr & Mrs Smith, a direct booking platform of luxury hotels.

In 2022, Hyatt entered into an exclusive collaboration agreement with Lindner Hotels AG, a German hotel operator, in bringing more than 30 hotels across seven European countries into Hyatt's portfolio under the JdV by Hyatt brand. [56] In 2024, Hyatt purchased the Me And All Hotels brand from Lindner.

Loyalty program

Hyatt operates a loyalty program called World of Hyatt, which replaced Gold Passport on March 1, 2017. [57] This program includes membership tiers of base members, Discoverists, Explorists, and Globalists. The program offers Hyatt members benefits such as room upgrades and complimentary breakfast, based on how many nights they stayed in Hyatt-affiliated hotels or how much they spend in Hyatt properties. [58]

Recognition

Fortune magazine ranked Hyatt #32 on its list of "America's Best Companies to Work For" in 2019, [59] rising to #16 in 2021. [60] The Human Rights Campaign (HRC) has awarded the company 100% in the HRC Equality Index for more than ten years, last in 2020. [61] [62]

See also

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References

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