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Hyatt is Testing Elimination of Free Breakfast at Hyatt Place Properties

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Hyatt is Testing Elimination of Free Breakfast at Hyatt Place Properties

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Old Mar 18, 2018, 7:40 am
  #16  
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I've "weighed in" on the Hyatt Place breakfast's before, when they seemed to convert from the "innovative sandwiches" to a Comfort Inn-style instant eggs and cheap sausages model.

Are the imaginative Hyatt Place breakfasts gone?

Since that post, HP has rolled out a "breakfast bowl" program that did improve -- and diversify -- the breakfast offerings. Unsurprisingly (if you read the thread) they particularly improved breakfast during the week (better bowls), and kept the weekend ingredient costs lower. Honestly, I thought that was a good solution to their "problem," and kept HP breakfasts reasonably competitive with the competition.

https://www.businesswire.com/news/ho...ast-Experience

In this context, their test of ending free breakfast surprises me. The "upper middle" motel model in the USA seems to REQUIRE free breakfast these days. I thought it was wise for HP to have an "innovative" free breakfast strategy because HPs in general seem to have an edgier more modern vibe than say a Hampton Inn or a Holiday Inn Express.

Personally, I would NEVER pay for an HP breakfast, even the now somewhat-better ones. It's simply not good enough. I'm sometimes willing to pay for a cooked-to-order breakfast, and perhaps a "real" breakfast buffet, but not the offerings of a motel breakfast bar. If I'm hungry, I'd take that 10 bucks and hit a restaurant.

Moreover, I would be inclined to avoid HPs in the future when I'm paying my own way and -- especially -- when I'm travelling with my wife and family. "Free" breakfast is both convenient and a moneysaver: taking a family out to breakfast is both time consuming and expensive. Honestly, I usually prefer to have a light "free" breakfast at my hotel and then eat lunch later (I'm almost never "going out" to breakfast and then eating lunch). Without free breakfast, HP is simply less competitive in my mind to Hampton or HIX.

A good comparison would be the small Cambria chain by Choice. Cambrias are typically a little nicer version of the best HP, but they don't offer free breakfast. I generally will only stay at them when they're a fantastic award redemption in the Choice program, knowing that I'll have the expense and inconvenience of having to buy my own breakfast. If Cambria included free breakfast, I would prefer the brand to HP, Hampton and HIX and seek them out. If HP goes to paid breakfast, it will be like a big (and not quite as good) Cambria chain to me.
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Old Mar 18, 2018, 8:01 am
  #17  
 
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Originally Posted by iahphx
In this context, their test of ending free breakfast surprises me. The "upper middle" motel model in the USA seems to REQUIRE free breakfast these days.
Some hotels stray from this model. Four Points by Sheraton seems to be in the same market segment as Hyatt Place. 4P properties usually have a restaurant and a sit-down made-to-order breakfast, at a price. Elites can opt for extra points in lieu of free breakfast.

No one knows for sure whether eliminating the free breakfast will save the hotel enough money to offset the loss of room revenue when people decide to stay elsewhere. It seems reasonable for Hyatt to test the concept.
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Old Mar 18, 2018, 8:51 am
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Originally Posted by CloudCoder
Some hotels stray from this model. Four Points by Sheraton seems to be in the same market segment as Hyatt Place. 4P properties usually have a restaurant and a sit-down made-to-order breakfast, at a price. Elites can opt for extra points in lieu of free breakfast.

No one knows for sure whether eliminating the free breakfast will save the hotel enough money to offset the loss of room revenue when people decide to stay elsewhere. It seems reasonable for Hyatt to test the concept.
And Courtyard has never offered it, and no free option for elites even. My only gripe at CY is the lack of free coffee; something should be out on a table in the morning. Otherwise, I’m all good with copying that format.
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Old Mar 18, 2018, 10:42 am
  #19  
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Originally Posted by HeadInTheClouds

And Courtyard has never offered it, and no free option for elites even. My only gripe at CY is the lack of free coffee; something should be out on a table in the morning. Otherwise, I’m all good with copying that format.


Right -- Courtyard is pretty much the largest upper-middle motel chain that doesn't offer free breakfast. But its concept was created BEFORE the "free breakfast craze." Note that competitors haven't generally matched its format. Indeed, I would submit that, by being a first-mover in this space, Marriott kind of screwed-up its offerings. It's "free breakfast" chain was supposed to be budget: Fairfield. But "the market" liked its middle-upper motels to also have free breakfast (HIXand Hampton are largely responsible for this craze). So note how Marriott in recent years "moved up" Fairfield to be middle. Courtyards now basically compete against Hilton Garden Inns (which Hilton positions as smaller "full-service" hotels).

Four Points isn't really a concept. It's a collection of "full service" hotels that Starwood feels aren't good enough to be Sheratons.
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Old Mar 18, 2018, 11:14 am
  #20  
 
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Originally Posted by iahphx
Four Points isn't really a concept. It's a collection of "full service" hotels that Starwood feels aren't good enough to be Sheratons.
It's Starwood's lowest offering, which makes it the Starwood brand most comparable to Hyatt Place.
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Old Mar 18, 2018, 11:32 am
  #21  
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Originally Posted by CloudCoder
It's Starwood's lowest offering, which makes it the Starwood brand most comparable to Hyatt Place.
I wouldn't call FourPoints hotels full service. They don't have valets/bellpersons to help with luggage or fetch and deliver dry cleaning, so to me it's a limited service brand.
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Old Mar 18, 2018, 11:39 am
  #22  
 
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I could be wrong, but wasn't there a time that HP did not offer free BK at any of their hotels?

I thought that Hyatt started to institute free BK at HP's around 2010.
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Old Mar 18, 2018, 1:01 pm
  #23  
 
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Originally Posted by Gig103
The latter is still not ahead, because HP isn't going to drop rates by $10/guest.
I'd tend to agree, but generally speaking, it's not unusual to see HPs around $10-15 more per night vs. a CY/4P/Aloft/etc. nearby. I always figured that it was due to the free breakfast offered. If that goes away, it will be interesting to see if HPs can maintain that price differential.
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Old Mar 18, 2018, 1:55 pm
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Originally Posted by iahphx
Note that competitors haven't generally matched its format. Indeed, I would submit that, by being a first-mover in this space, Marriott kind of screwed-up its offerings.
Or, to state the reverse, it says something that CY hasn’t matched their competitors in this regard. Even with a recent complete revamp of their breakfast positioning, they didn’t go there. They obviously don’t feel they have screwed up their offerings.

They have found some sort of sweet spot in positioning. Maybe that is what HP is eyeing.
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Old Mar 18, 2018, 2:51 pm
  #25  
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Originally Posted by HeadInTheClouds

Or, to state the reverse, it says something that CY hasn’t matched their competitors in this regard. Even with a recent complete revamp of their breakfast positioning, they didn’t go there. They obviously don’t feel they have screwed up their offerings.

They have found some sort of sweet spot in positioning. Maybe that is what HP is eyeing.
Beats me -- although it seems like the now-more-upscale Fairfield chain is growing a lot faster than Courtyard these days.

I don't stay at a lot of Courtyards. To whom do these properties appeal to? The "free breakfast" upper-middle chains seem like good value to all upper-middle travellers, regardless of whether they have status. The "full service" properties are good if you're high elite (with Marriott, gold or better). Who gets good value at Courtyards? The brand makes little sense to me; it seems like just about everyone would do better elsewhere, especially since the pricing at Courtyards is rarely appealing.
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Old Mar 18, 2018, 5:31 pm
  #26  
 
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Could Hyatt be trying to leapfrog HP to compete with Hilton Garden Inn? As a Hilton Gold, the free breakfast at HGI draws me there.
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Old Mar 18, 2018, 7:01 pm
  #27  
 
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Originally Posted by danger
That's a concern given Hyatt's own marketing material says the gallery breakfast is indeed a brand standard: https://www.hyatt.com/development/ourbrands/hyattplace.
It comes as no surprise that Hyatt's various websites are out of sync.

In their site for travel agents, it says that Hyatt House offers free breakfast, but it does NOT say that Hyatt Place offers it.

In the WoH Terms and Condtions, it says that Free Breakfast for Globalist is NOT offered at Hyatt Place, yet whenever I've stayed at HP's outside the US (where they charge for breakfast), it's always provided free to top tier.

It would be a good move on Hyatt's part to get someone in there who can make all their websites sing the same song.
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Old Mar 18, 2018, 8:06 pm
  #28  
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Originally Posted by WCT3U
Could Hyatt be trying to leapfrog HP to compete with Hilton Garden Inn? As a Hilton Gold, the free breakfast at HGI draws me there.
I agree: HGI can be a good deal with adequate Honors status. But they seem like a bad deal without status. But so do full service Hiltons, and people still stay at them.
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Old Mar 18, 2018, 8:21 pm
  #29  
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One of the side effects of Hyatt kicking me out of Diamond on stays is that now I won't give them any HP revenue business, only Cat 1 and Cat 2 award stays. I've moved the solo one-night stays to a mix of HIX, Home2Suites, and LaQuinta. I'm not really missing the HP breakfast, and I'll miss it even less if it becomes no longer free.
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Old Mar 18, 2018, 8:53 pm
  #30  
 
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Originally Posted by CloudCoder
IMO if HP charges non-elites for breakfast, all the possible outcomes are positive.
  1. HP lobby will be less of a zoo in the morning.
  2. The kind of folks who are drawn to a "free breakfast" hotel will be drawn elsewhere ... by this I mainly mean a high-school volleyball team with 5 kids in the same room.
  3. Lower costs for the hotel, possible rate decrease.
  4. Elites who choose to have breakfast at the hotel will enjoy a better (less crowded) experience.
I can't think of a single downside.
I seriously doubt a lower occupancy level is going to be good for anyone in the long run. Eliminating the free breakfasts will cost them certain customers, but is there anyone who would stay there, switching from another brand, because they eliminated free breakfasts?

Generally higher occupancy levels keep room rates down and attract more paying customers - which in theory would be Hyatt's goal. I doubt Hyatt corporate offices give a d@mn if certain customers feel the lobby is a zoo in the morning. As for lower costs for the hotel, possible rate decrease: nope, not buying that one in this lifetime. Lower costs for hotel, higher profits for hotel, not benefits for customers.
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