So every hotel with a pool is a resort now? No. The reality that does not involve some tortured conjured up excuse, is just that the hotel like many others, does not want to endure any costs or hassles from the brand flag, and only wants the benefits, so they tell Hyatt they want to ignore that benefit, and since Hyatt only cares about the hotels and their owners rather than the guests, they approve every request to ignore those "benefits." It is just a random designation there to allow hotels to just get out of anything they don't like and especially since this hotel has become very clear post reno that they do not want to have any guests that are "Hyatt loyalty" based guests, it is hardly surprising.