Originally Posted by
redwood_10
"The lower profitability of Hyatt compared to its peers can be explained by its relatively larger exposure to full-service hotels. Full-service hotels normally give lower margins than select service hotels due to the high cost of operations. According to a study done by PKF Hospitality Research, from 2005 to 2011, net operating income for select service hotels was 36.5% compared to 25.7% for full-service hotels."
I think the most dramatic aspect of these changes --not for me or most FTers, but for Hyatt-- is that they eliminate all Diamond rewards for staying at HH/HP. With no upgrades (nothing to upgrade to in most cases) and no welcome amenity, Globalists staying at HH/HP will receive treatment that's
no different from anyone else. In the past, the 500 points certainly weren't a huge motivator, but in conjunction with stay credits, probably brought a fair bit of extra business from Diamonds.
I know the narrative in this thread is mostly of el-cheapo Diamonds staying at $50 HPs, but in reality, there are quite a few HHs/HPs that run >>$200. Just look at Austin, Seattle, heck, even PDX airport in summer.
By my count, Hyatt has 75 HHs and 272 HPs -- more than 50% of the entire footprint. It seems to be the height of foolishness to eliminate the motivation for Hyatt's best customers to stay at these types hotels.