Where Hyatt's model is likely falling short is on the unbiased base point qualification milestone. Adding the spa / dining spending would be brilliant for their bottom line had they set even a remotely realistic annual attainment level. If status was "within realistic reach for folks who may actually care to achieve it" they would have positioned these components of their business for significant growth. I'm not familiar with the Hyatt restaurants outside of NYC, but I will say that they could have put their business in a position to do the impossible in Manhattan - strip a serious chunk of business from Starbucks, etc. in midtown. Had they set the threshold at 12K, I bet NYC folks who spend a decent amount at Hyatt already would bump their spending at the Shops @ Andaz for coffee. If so, that would be brilliant, easy money for Hyatt. On the west coast, Hyatt's spas in Scottsdale would also see a boost IMO (lady spa days, etc.) Same premise. Maybe Hyatt wouldn't otherwise be the top spa destination choice in that area, but this could be a big incentive to choose Hyatt for bachelorette party venues, etc.
But the economics of 20K simply doesn't work to incentivize these things. Anyone who is spending anywhere near 20K on Hyatt per year (without already staying the required 55 nights) has to be in an economic bracket where money is literally no object. In which case, hotel status would be largely unimportant. That's where I believe Hyatt misjudged the opportunity set...