Hyatt continues to develop, opening new properties around the globe. In addition to a pipeline with a sustained delivery schedule, the hotelier is restructuring its lifestyle segment and announced the creation of a new division bringing together Hyatt and Two Roads Hospitality.
The American group, headquartered in Chicago, has a portfolio of 19 brands representing more than 850 properties in some 60 countries around the world. It continues to expand, starting in the Americas with 21 new hotels opening in Canada by 2022, including three this year alone. In the Asia-Oceania market, the group will also bring some twenty new units from north to south on both continents.
Strengthened presence in Asia and the Pacific
Asia, the second most important tourist catchment area in 2017 with 24% of international arrivals according to the WTO, is the new tourism Eldorado, where 6.4% more visitors have flocked since 2005, compared to 3.3% in Europe or 3.9% in the Americas. These figures do not leave hoteliers like Hyatt indifferent, who see real opportunities in a dynamic and very promising market for the coming years. It is therefore only natural that the American group has decided to increase its presence there by 25% by the end of 2020, "in the destinations that matter most to our customers," says Carina Chorengel, Hyatt's Senior Vice President, Sales, Asia Pacific.
The focus will be on the luxury segment as Patrick Finn, Senior Vice President, Real Estate and Development, Asia Pacific, explains: "We see tremendous growth potential for our luxury products portfolio in Asia Pacific, which currently represents 40% of Hyatt's total portfolio in the region. The objective is also to focus on high-contribution customers, a segment that the group would like to expand in the coming years in a more global way: "As we expand our resorts, lifestyle and well-being offer we will be able to better meet the needs of increasingly diversified luxury travelers who are looking for greater personalization, whether they are traveling for business or leisure purposes" (Carina Chorengel).
Park Hyatt, Grand Hyatt, Andaz and Alila will be the main brands affected by the Asia-Pacific pipeline, with 21 new units announced. More precisely, there will be seven Park Hyatt properties (a record for the brand, which usually opens one establishment per year), six hotels under the Grand Hyatt and Andaz brands (lifestyle brand renowned for its immersive cultural experiences) and two seaside resorts under the Alila brand (design and local integration, combining culture and sustainable development through the EarthCheck standards it applies). Each brand will have its own strategy, as a group spokesman points out: "Hyatt has a distinct and differentiated strategy with each of its brands positioned at the top of the range in each segment in which we operate."
The new properties will be subdivided as follows, in function of the year they open:
- Andaz Dubai The Palm in the United Arab Emirates
- Andaz Gangnam Seoul in South Korea
- Grand Hyatt Al Khobar in Saudi Arabia
- Grand Hyatt Gurgaon in India
- Grand Hyatt Hefei in China
- Park Hyatt Auckland in New Zealand
- Park Hyatt Doha in Qatar
- Park Hyatt Jakarta in Indonesia
- Park Hyatt Kyoto in Japan
- Park Hyatt Shenzhen in China
- Alila Dalit Bay in Malaysia
- Alila Hinu Bay in Oman
- Andaz Bali in Indonesia
- Andaz Sanya Sunny Bay in China
- Andaz Shenzhen in China
- Andaz Xiamen in China
- Grand Hyatt Jeju in Korea
- Grand Hyatt Kuwait in Kuwait
- Grand Hyatt Shenzhou Peninsula in China
- Park Hyatt Niseko, Hanazono in Japan
- Park Hyatt Suzhou in China
Attacking the Canadian Market
With 20.7 million tourists in 2017, Canada experienced 4.1% growth in the number of tourist arrivals between 2016 and 2017, and 11.1% between 2015 and 2016. This is a growing market, as Scott Richer, Hyatt's Regional VP of Development for Canada, explains: "We continue to see growth opportunities in the region and we are confident in the direction and future of Hyatt, across brands."
At the top of the list of tourist attractions is Niagara Falls on the US-Canada border. Each year, they welcome fifteen million visitors. For this reason, two projects will take place in downtown Niagara Falls: Hyatt Centric / Hyatt Regency Niagara Falls and Hyatt Place Niagara Falls, both scheduled to open in 2022. The Hyatt Place property will be owned and operated by Fallsview Group, founded by the Menechella family some 40 years ago in Niagara Falls.
Other scheduled openings are:
- Hyatt Place Mississauga Centre in Mississauga, Ontario
- Hyatt House Winnipeg Sud-Ouest in Winnipeg, Manitoba
- Park Hyatt Toronto (reopening after renovation) à Toronto, Ontario
- Hyatt Place Kelowna in Kelowna, British Columbia
- Hyatt Place Winnipeg Downtown in Winnipeg, Manitoba
- Hyatt Place Moncton in Moncton, New Brunswick
- Hyatt Place Brampton in Brampton, Ontario
- Hyatt Place / Hyatt House Edmonton Downtown, in Edmonton, Alberta
- Hyatt Place Ottawa - Bells Corners in Ottawa, Ontario
- Hyatt Place / Hyatt House Mississauga - Airport Corporate Centre in Toronto, Ontario
- Hyatt Place Toronto - Oakville East in Toronto, Ontario
- Hyatt House Hamilton / McMaster University in Hamilton, Ontario
- Hyatt House Toronto - Mississauga Centre in Toronto, Ontario
- Hyatt Place Vancouver Airport in Vancouver, British Columbia
- Hyatt Place Toronto International Airport in Toronto, Ontario
- Hyatt Place / Hyatt House at Canada's Wonderland in Vaughan, Ontario
- Hyatt Place Toronto - Downtown / Jarvis Street in Toronto, Ontario
- Hyatt Centric / Hyatt Regency Niagara Falls, Ontario
- Hyatt Place Niagara Falls in Niagara, Ontario
- Hyatt Place / Hyatt House Ottawa Byward Market in Ottawa, Ontario
- Andaz Toronto - Yorkville in Toronto, Ontario
Restructuration du segment lifestyle
After extending its collaboration with Small Luxury of the World, Hyatt Hotels Corporation is continuing its commitment to boutique hotels and the lifestyle segment by creating a new division. This will include the Hyatt and Two Roads Hospitality brands, including Andaz, Alila, Hyatt Centric, Joie de Vivre Hotels, Thompson Hotels and tommie.
This restructuring follows Hyatt's acquisition of Two Road Hospitality last December for approximately $480 million, representing a total of 85 properties in eight countries. Mark Hoplamazian, RDG of Hyatt Hotels Corporation, justified the purchase by explaining that it would enable the group to strengthen its position in the Asian market: "The combination of the presence of the Two Roads brand and its development plans in Asia, with Hyatt's already strong position in this region will enable us to accelerate our expansion in this part of the world that is essential and fast-growing."
The arrival of Two Road Hospitality therefore marks the first milestone in the transformation of Hyatt's lifestyles portfolio, since Frédéric Flageat-Simon, the former Managing Director of Two Roads Hospitality Asia, will be in charge of the new division. Also, the brands of Two Roads Hospitality such as Thompson Hotels, Alila and Andaz are the subject of powerful investments with a sustained pipeline, like Hyatt Centric, which shows the most advanced growth in terms of development.
Unprecedented for the group, its mission will be to develop and define the positioning of the portfolio in question. In addition, “With the introduction of a dedicated lifestyle division, we’re able to dive deeper into our guests’ preferences and further carve out Hyatt’s role in this important segment,”explains Mark Vondrasek, Hyatt’s chief commercial officer. “We will leverage Heather’s [Geisler, vice-président des marques mondiales] global full-service brand expertise with Two Roads’ brand strength and successes in the lifestyle sector while leaning in on the broader benefits of Hyatt like our World of Hyatt loyalty program to provide our guests with more choices for each unique stay experience.”
In concrete terms, this new division will create synergy between the group's lifestyle brands in terms of commercial services, digital strategy, loyalty, sales and well-being. The recent incorporation of Two Roads Thompson Hotels and Joie de Vivre Hotels into the World of Hyatt loyalty program thus foreshadowed what was to happen in terms of collaboration in the new division.
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