Hyatt Hotels Corporation is experiencing a surge in its select service portfolio, reflecting a nearly 25% increase in the Americas over the past three years. This segment now comprises over 50% of Hyatt’s overall pipeline in the region, showcasing the brand’s commitment to this category. Alongside its expansion in lifestyle, luxury, and all-inclusive offerings, Hyatt’s select service portfolio continues to be a vital contributor to market growth and to boosting awareness and enrollment in World of Hyatt, the fastest-growing loyalty program in the industry.
Hyatt’s success in this sector stems from owner-led innovation that prioritizes operational efficiency and profitability. “Across our select service brands, we are strategically adapting product design and operations to reduce construction costs, leverage technology, and allow for greater customization,” said Dan Hansen, head of Americas development, Hyatt. “While prioritizing what matters most to our guests and World of Hyatt members, we will continue to grow and evolve with intent, delivering exceptional guest experiences and maximizing owner profitability.”
Caption by Hyatt: A Revitalized Strategy for Market Flexibility
Hyatt’s upscale select service brand, Caption by Hyatt, has undergone a strategic revitalization to offer enhanced market flexibility, a streamlined food and beverage model, and an updated prototype design. Shaped by feedback from both owners and guests, these improvements allow for expansion into a wider range of markets while maintaining a simplified, cost-effective prototype and operational model. Despite these changes, the brand remains true to its core identity as a community hub.
The design updates infuse a touch of sophistication into both guest rooms and public spaces, while retaining the brand’s energetic vibe. Guest rooms feature refinements like a more elegant color palette, softer lighting, and thoughtful upholstery and artwork that reflect the local culture. Public spaces are spacious, featuring rich color accents and durable, timeless materials chosen for their longevity and appeal.
The revamped food and beverage model emphasizes efficiency and adaptability through a fast-casual dining concept with a flexible menu that seamlessly shifts from breakfast offerings to all-day options. This simplified approach reduces ingredient costs and preparation time. Owners can either implement this in-house or collaborate with a third-party operator, lowering investment while maintaining guest appeal.
With two new openings in the Asia Pacific region in 2024 and more expected across the U.S. in 2025, Caption by Hyatt is poised for continued global growth.
Hyatt Studios: Surpassing 4,000 Rooms in its Pipeline
Hyatt Studios, Hyatt’s upper midscale extended stay brand, has witnessed remarkable growth in just 18 months since its debut. With over 4,000 rooms in its pipeline and 250 deals in various stages of negotiation, the brand is successfully entering a new market segment. Nearly half of the pipeline properties represent first-time Hyatt owners, signifying the brand’s entry into previously untapped markets.
The brand’s momentum is evident in recent groundbreakings and hotels currently under construction, with openings planned for 2025 and 2026. Hyatt Studios Harrisonburg, located near the Sentara Medical Center in the Shenandoah Valley, broke ground on September 5, one of three projects by Suburban Capital in Virginia, with future locations planned for Chesapeake and Charlottesville. Meanwhile, Hyatt Studios Texarkana broke ground on September 26, strategically located near key medical and military institutions along the Texas-Arkansas border, a new market for Hyatt.
Enhancements for Hyatt Place and Hyatt House Brands
Hyatt’s well-established brands, Hyatt House and Hyatt Place, are undergoing significant upgrades driven by feedback from owners and guests. Hyatt House, known for its home-like atmosphere, has introduced a new generation of guest rooms. These refreshed spaces now include redesigned kitchens and living areas, featuring kitchen islands, media consoles, and durable hard-surface flooring.
The upscale Hyatt Place brand is in a test-and-learn phase, focusing on reducing construction costs and improving operational efficiency. This includes reviewing all aspects of the prototype, from room configurations to interior and exterior materials, with a particular focus on simplifying interior design for greater efficiency. “We’ve been carefully listening to guest and owner feedback, including insights from our recent Owners Advisory Council, to evolve the Hyatt Place brand. By maintaining an open dialogue, we’re finding new ways to boost owner profitability while continuing to deliver the high-quality experience that guests expect. Stay tuned for exciting updates in the coming months,” said Jim Tierney, SVP of development and owner relations, Hyatt.
The Power of World of Hyatt
Hyatt’s World of Hyatt loyalty program, boasting 44% more members per hotel compared to its larger competitors, continues to fuel direct business growth, particularly within the select service portfolio. Recent promotions for the Hyatt House and Hyatt Place brands have led to a 50% year-over-year increase in direct bookings from existing members who participated in the offers. Additionally, there has been strong engagement with the new ‘2K Next Stay’ milestone award, which rewards members with 2,000 Bonus Points for their next stay at a select service hotel after reaching 20 Qualifying Nights or earning 35,000 Base Points.
