Hyatt Accelerates UK Mid-Market Push

Hyatt Hotels, traditionally associated with luxury offerings in Europe, is making a significant push into the mid-market in the UK as part of a broader strategy to diversify its brand presence across the continent.

On Tuesday, the American hospitality company announced plans to expand its UK portfolio by more than 30% between 2025 and 2026, adding over 1,000 rooms.

This expansion, launched with the recent dual-brand openings of Hyatt Place Leeds and Hyatt House Leeds, highlights Hyatt's intent to reach a wider range of travelers.

The Leeds development, combining the operational efficiency of Hyatt Place with the extended-stay appeal of Hyatt House, reflects the company's focus on adaptable and efficient models.

The company's UK expansion aligns with its broader strategy of moving beyond its traditional luxury focus.

Hyatt has recently pursued growth through acquisitions and the recent launch of the Hyatt Select mid-market brand, further demonstrating its commitment to a wider audience.

Upcoming openings of Hyatt Place London Paddington and Hyatt Regency London Olympia, along with the Leeds development, indicate a deliberate diversification strategy.

Hyatt said its UK expansion is also fueled by a resurgence in business travel, with meetings and events inquiries in Europe rising by 5% in the fourth quarter of 2024, and UK properties accounting for a substantial portion of these. This trend supports Hyatt’s strategy of offering properties that cater to both leisure and business travelers.

The demand for select-service hotels is growing, particularly among younger and cost-conscious travelers. 

With its UK portfolio now spanning 17 hotels across nine brands, Hyatt is beginning to make significant strides in a market where it was once a minor player. 

However, the company still lags behind competitors in select-service supply, making this expansion crucial for increasing brand awareness and loyalty among a broader range of European travelers. 

The launch of Hyatt Select, combined with steady growth in Hyatt Place and Hyatt House, signals that Hyatt is ready to compete more in a segment it has historically under-indexed.

Hyatt’s UK expansion is not just about adding rooms. It's also about strategically positioning itself across all segments of the European hospitality market and strengthening the appeal of its World of Hyatt loyalty program, which now boasts 54 million global members by adding more places to stay in the UK for points redemptions.

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