Hyatt is on the verge of sealing a deal with Standard International, the owner of the luxury lifestyle brand The Standard. This move signifies a strategic shift towards luxury lifestyle hotels, a category that is becoming increasingly popular among major hotel groups. Unlike traditional hotels, luxury lifestyle properties offer a unique experience with artistic lobbies and trendy rooftop bars.
The CEO of Hyatt, Mark Hoplamazian, believes that incorporating luxury and lifestyle brands into their portfolio can create a “network effect” that boosts loyalty program growth and engagement. By attracting high-end clientele, Hyatt aims to drive direct bookings and enhance revenue per available room.
Over the past few years, Hyatt has significantly expanded its luxury and lifestyle offerings, doubling the number of luxury hotels and quintupling high-end lifestyle resorts. This growth has helped Hyatt differentiate itself from competitors and attract developers and owners.
In a bid to grow its customer base and target a younger demographic, Hyatt has made strategic acquisitions such as Dream Hotels and boutique hotel booking site Mr and Mrs Smith. These acquisitions have not only added more rooms to Hyatt's portfolio but also increased its appeal to luxury lifestyle travelers.
Hyatt's focus on luxury and lifestyle properties aligns with industry trends, as other major hotel groups like Hilton and IHG are also investing in this segment. The demand for branded lifestyle hotels is on the rise, with developers aiming to open thousands of such properties in the coming years.
In a competitive market environment, Hyatt's emphasis on luxury lifestyle properties is a calculated strategic move that aims to drive growth, enhance customer engagement, and ultimately boost revenue. As the hospitality industry evolves, Hyatt's commitment to luxury and lifestyle offerings positions it as a key player in the market.