Hyatt completes acquisition of Mr & Mrs
Smith travel platform that provides direct access to more than
1,500 boutique and luxury properties
Hyatt expects to maintain industry-leading net
rooms growth into the future with increased focus on extended-stay
in the Americas in addition to expansive opportunities globally
across brand portfolio
Hyatt Hotels Corporation (NYSE: H) 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.
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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.
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.
In connection with the Mr & Mrs Smith transaction, Credit
Suisse served as financial advisor to Hyatt and Linklaters LLP
acted as its legal advisor. Arrowpoint Advisory (part of Rothschild
& Co) served as financial advisor to Mr & Mrs Smith and
Fieldfisher LLP acted as its legal advisor.
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 March 31, 2023, 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®, Hyatt Studios, and
UrCove; the Boundless Collection, including Miraval®,
Alila®, Andaz®, Thompson Hotels®, Dream®
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
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, 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, weather and climate-related events, such as earthquakes,
tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil
spills, nuclear incidents, and global outbreaks of pandemics or
contagious diseases, or fear of such outbreaks; the pace and
consistency of recovery following the COVID-19 pandemic and the
long-term effects of the pandemic, additional resurgence, or
COVID-19 variants, including with respect to global and regional
economic activity, travel limitations or bans, the demand for
travel, transient and group business, and levels of consumer
confidence; 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 or other pandemics, epidemics or other health crises; 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 the capital
necessary to fund current operations or implement our plans for
growth; risks associated with potential acquisitions and
dispositions and our ability to successfully integrate completed
acquisitions with existing operations, including with respect to
our acquisition of Apple Leisure Group and Dream Hotel Group and
the successful integration of each business; 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; risks associated with
the introduction of new brand concepts, including 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; and violations of
regulations or laws related to our franchising business and
licensing businesses and our international operations;; 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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Steve Snart Hyatt steve.snart@hyatt.com
Hyatt Hotels (NYSE:H)
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