Hyatt didn’t meet analysts’ expectations for its third quarter earnings, but that doesn’t mean its Hyatt Place and Hyatt House brands didn’t make strides.
The Hyatt Place select service brand saw openings of 17 new hotels through the third quarter of 2014, 11 of which are in the U.S. These new properties bring the brand’s total hotel count to 200, and these new hotels are in 21 countries around the world. And 15 of these countries represent new markets for the brand.
Hyatt Place is projected to see 65% growth based on its already executed hotel contracts, and the hotel’s Gold Passport loyalty program members represent 40% of its revenue.
Hyatt House, Hyatt’s extended stay brand, will see 50% growth from its executed hotel contracts, and Gold Passport loyalty program members represent 60% of that brand’s revenue.
Both brands will continue targeting cities for new properties.
“We’re focused on growing the brand in urban markets in particular, and we expect this strategy will take the brand to a new level,” said Mark Hoplamazian, Hyatt CEO, during the company’s third quarter earnings call Wednesday.
Hoplamazian said Hyatt’s focus on both brands indicates its service model’s importance as a key differentiator in the industry.
“Overtime, we’ve generated strong returns and we now enjoy significant institutional ownership of hotels across both brands through our asset recycling activities,” Hoplamazian said. “We will continue to invest in urban locations and have projects under way either on our own or with joint venture partners in Denver, San Francisco, San Jose, Irvine and outside the United States in Mexico and Brazil.”
Over the past two years, Hyatt Place’s revenue per available room (RevPAR) saw a 10% increase, while Hyatt House’s RevPAR experienced an 8% increase during the same period.