FlyerTalk Forums - View Single Post - Hyatt adds to all-inclusive lineup with Bahia Principe partnership
Old Oct 29, 2024 | 3:55 am
  #20  
Sophoclefr
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Originally Posted by khabah
I agree with ffgap's comment in that Hyatt has more gaps to fill rather than blowing up their all-inclusive portfolio to over 10 brands that, again, have less than ten hotels to most of their brands' names [e.g., Zoëtry has nine, Sunscape six, Ziva six, Zilara four, Impression two, Vivid one], don't have exciting or tangible growth prospects [e.g., Ziva/Zilara is only just expanding beyond the Caribbean but those hotels are at least five years out, Impression and Vivid have zero], exist in places where Hyatt already has tons of presence [e.g., more AIs in Punta Cana, Tenerife and Mexico], and no longer have visible differentiation between them [e.g., Dreams, Secrets, Breathless, Zoëtry all play in the same upper-upscale space with minimal differentiation aside from being adults- versus family-friendly]. The leisure market may be growing now, but is amassing all these brands viable in the future?

Hyatt is lacking a true upper luxury brand since Park Hyatt, which represents the top of the pyramid, simply doesn't compete on the same level as a Four Seasons or Rosewood does, and I know I've repeated this ad nauseam, but they need SCALING. Grow your existing brands rather than launching and acquiring more and more microbrands that focus on one geographic area. Hyatt keeps talking about "growth" for all these new brands they're onboarding, but there is very little to see; when looking at competitors like Hilton and Marriott, I'm hearing that Hilton's pipeline for NoMad [which only joined Hilton this summer following the April acquisition announcement] is already up to ~10 hotels, and Marriott announced their 500th hotel in the Caribbean/Latin America alone.

Maybe I don't get the business behind all these decisions, but as a customer, I'm increasingly confused and disenchanted by new offerings that don't appeal to me or my travel needs/style - and I'm sure this is something that resonates with many other travelers within and beyond North America.

khabah
True but don’t forget that whether we like it or not a company is run for it’s shareholders not for it’s clients (even the most loyal ones). And if you look at the share performance since the IPO in 2009 (so not just a one off short sighted private equity like cost cutting plan which will back fire after a few years) and despite all the criticism here they have done pretty well…
So obviously nobody knows and future will tell but I would bet they know perfectly what they do with this deal/acquisition and they are convinced it will create more value than opening a PH in a city with no real demand for it (at least at the full cash price needed to justify the location and service).
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