Hyatt Plans to Acquire Apple Leisure Group
Aug 16, 2021, 12:09 am
#31
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Aug 16, 2021, 3:10 am
#32
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not sure how the press release title "Expanding Global Brand Presence in Luxury Leisure Travel" fits with "Cheap Caribbean".
While I like some of the Ziva/Zilara's, I am not very keen on all inclusives, especially not in Europe. The thought of (wont mention the European country) guests flooding the buffets gives me goose bumps.
Agree with MSPeconomist for Hyatt to stay classy!
While I like some of the Ziva/Zilara's, I am not very keen on all inclusives, especially not in Europe. The thought of (wont mention the European country) guests flooding the buffets gives me goose bumps.
Agree with MSPeconomist for Hyatt to stay classy!
This was my first thought when I saw the word Apple in the thread title. Like the Big Red Boat and Carnival cruises, someone would need to *pay me a lot of money* to even consider one of these packages or to consider dealing with their "travel agents."
Stay classy, Hyatt.
Stay classy, Hyatt.
Aug 16, 2021, 3:22 am
#33
Join Date: Feb 2018
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Yuck.
Kept/keep hoping for an Aman / AndBeyond / OneandOnly / Habitas tie-up and get handed a pile or feces instead. Definitely makes me now rethink my current Lifetime Globalist spend efforts.
Complete opposite strategy of IHG tie-up with Six Senses. Just did a Six Senses stay at Zil Pasyon in Seychelles which was incredible (and earned a metric sht load of IHG points on). No sense that any stay at any "Apple Leisure Group" property will ever be incredible.
Yuck
Kept/keep hoping for an Aman / AndBeyond / OneandOnly / Habitas tie-up and get handed a pile or feces instead. Definitely makes me now rethink my current Lifetime Globalist spend efforts.
Complete opposite strategy of IHG tie-up with Six Senses. Just did a Six Senses stay at Zil Pasyon in Seychelles which was incredible (and earned a metric sht load of IHG points on). No sense that any stay at any "Apple Leisure Group" property will ever be incredible.
Yuck
Aug 16, 2021, 3:27 am
#34
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I agree with those views that Hyatt should focus on core brand expansion and acquiring properties or hotel management companies with similar core brand hotel properties.
Establishing core Hyatt Branding and consistency within the Hyatt portfolio brands would be preferred…… however I am just commenting from afar as a customer not as someone who knows hospitality management.
Establishing core Hyatt Branding and consistency within the Hyatt portfolio brands would be preferred…… however I am just commenting from afar as a customer not as someone who knows hospitality management.
Aug 16, 2021, 3:28 am
#35
Join Date: Feb 2018
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Lol!
But seriously, Zilara Jamaica, an "ExpensiveCaribbean Hyatt Experience" stay was one of our worst Hyatt stays. Caribbean in general is a crap hole. Some obvious high-end exception islands and properties but overall, not an area I ever want to go back to
But seriously, Zilara Jamaica, an "ExpensiveCaribbean Hyatt Experience" stay was one of our worst Hyatt stays. Caribbean in general is a crap hole. Some obvious high-end exception islands and properties but overall, not an area I ever want to go back to
Aug 16, 2021, 4:33 am
#36
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Owners of hotels with brands like Aman, OneandOnly, Montage, etc have little or reason to seek sales like Hyatt IMO. Making those hotels a Hyatt brand likely don’t increase their value. Hyatt could overpay but the hotels probably aren’t huge fee generators in an of themselves. A Caribbean travel package business may bring in a lot more revenue than a few Aman properties. Four Seasons is probably the last real meaningful luxury brand out there there that could be acquired
If we want more core Andaz, Park/Grand Hyatt, Hyatt Regency, etc, it is challenging because full service hotel development is out of vogue globally. The market in many cities in saturated, development costs are high, labor operating costs are high, limited service is a better investment, and now, business travel end demand is uncertain. Developers continue to build a ton of Hyatt Place / Hyatt House because that is where the industry is going.
What Hyatt could do is actually build more branded hotels in more leisure driven markets, then sell the real estate once the hotels are built. However Wall Street hates that strategy so it is unlikely to be done in scale
Long term Hyatt is likely better off sold, either to Hilton/IHG or to Airbnb, but likely never to happen
If we want more core Andaz, Park/Grand Hyatt, Hyatt Regency, etc, it is challenging because full service hotel development is out of vogue globally. The market in many cities in saturated, development costs are high, labor operating costs are high, limited service is a better investment, and now, business travel end demand is uncertain. Developers continue to build a ton of Hyatt Place / Hyatt House because that is where the industry is going.
What Hyatt could do is actually build more branded hotels in more leisure driven markets, then sell the real estate once the hotels are built. However Wall Street hates that strategy so it is unlikely to be done in scale
Long term Hyatt is likely better off sold, either to Hilton/IHG or to Airbnb, but likely never to happen
Last edited by Adelphos; Aug 16, 2021 at 4:39 am
Aug 16, 2021, 5:04 am
#37
Join Date: Feb 2018
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Owners of hotels with brands like Aman, OneandOnly, Montage, etc have little or reason to seek sales like Hyatt IMO. Making those hotels a Hyatt brand likely don’t increase their value. Hyatt could overpay but the hotels probably aren’t huge fee generators in an of themselves. A Caribbean travel package business may bring in a lot more revenue than a few Aman properties. Four Seasons is probably the last real meaningful luxury brand out there there that could be acquired
If we want more core Andaz, Park/Grand Hyatt, Hyatt Regency, etc, it is challenging because full service hotel development is out of vogue globally. The market in many cities in saturated, development costs are high, labor operating costs are high, limited service is a better investment, and now, business travel end demand is uncertain. Developers continue to build a ton of Hyatt Place / Hyatt House because that is where the industry is going.
What Hyatt could do is actually build more branded hotels in more leisure driven markets, then sell the real estate once the hotels are built. However Wall Street hates that strategy so it is unlikely to be done in scale
Long term Hyatt is likely better off sold, either to Hilton/IHG or to Airbnb, but likely never to happen
If we want more core Andaz, Park/Grand Hyatt, Hyatt Regency, etc, it is challenging because full service hotel development is out of vogue globally. The market in many cities in saturated, development costs are high, labor operating costs are high, limited service is a better investment, and now, business travel end demand is uncertain. Developers continue to build a ton of Hyatt Place / Hyatt House because that is where the industry is going.
What Hyatt could do is actually build more branded hotels in more leisure driven markets, then sell the real estate once the hotels are built. However Wall Street hates that strategy so it is unlikely to be done in scale
Long term Hyatt is likely better off sold, either to Hilton/IHG or to Airbnb, but likely never to happen
Furthermore, any time I read Bain Capital or KKR making a profitable sale I know it was off the backs and to the detriment of the employees of the company(s) sold
Aug 16, 2021, 5:11 am
#38
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Investor deck out:
https://www.sec.gov/Archives/edgar/d...0838dex992.htm
Key points
- Hyatt wants to increase fee earnings % to 80% by 2024- they will sell more corporate owned hotels
- Leisure revenue mix will be 50% by 2023 (traditionally these companies have said their mix is 2/3 business, 1/3 leisure)
https://www.sec.gov/Archives/edgar/d...0838dex992.htm
Key points
- Hyatt wants to increase fee earnings % to 80% by 2024- they will sell more corporate owned hotels
- Leisure revenue mix will be 50% by 2023 (traditionally these companies have said their mix is 2/3 business, 1/3 leisure)
Aug 16, 2021, 5:31 am
#39
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Are the really taking over all Alua hotels & resorts? When I visit the Alua web site, I see 29 properties on the Balearics (Mallorca/Menorca/Ibiza) alone, including some properties not branded Alua but Linda Hotel, Oberoy Hotel, and so on.
I really question whether Hyatt can get this to work without selling off some properties. They are a relatively small chain by member and room count. (They are a big player if you go by revenue due to the heavy focus on the luxury and premium segments.) Furthermore, their customer base is heavily tilted towards North America. Maybe a chain with a stronger presence in Europe like Accor or IHG could swing this but Hyatt? Keep in mind Hyatt always tries to be the "premium" option within a class/hotel category. Some investment in those properties and raising room rates would be more typical of Hyatt than drawing the crowds through low, low prices.
I really question whether Hyatt can get this to work without selling off some properties. They are a relatively small chain by member and room count. (They are a big player if you go by revenue due to the heavy focus on the luxury and premium segments.) Furthermore, their customer base is heavily tilted towards North America. Maybe a chain with a stronger presence in Europe like Accor or IHG could swing this but Hyatt? Keep in mind Hyatt always tries to be the "premium" option within a class/hotel category. Some investment in those properties and raising room rates would be more typical of Hyatt than drawing the crowds through low, low prices.
Aug 16, 2021, 5:44 am
#40
Join Date: Jul 2020
Posts: 490
Ever since Hoplamazian took over, Hyatt's been making one poor decision after another IMO.
Changed the loyalty program including coming up with dorky names for each level.
Acquired Miraval. Three hoity toity resort spas that seem like a bad fit with Hyatt.
Several other acquisitions that are mostly lower end.
The only addition I think fits well is SLH, and even that doesn't work well because we don't get the Hyatt program benefits while staying there.
Now this.
Fire Hoplamazian and get back to growing Hyatt core hotels.
Changed the loyalty program including coming up with dorky names for each level.
Acquired Miraval. Three hoity toity resort spas that seem like a bad fit with Hyatt.
Several other acquisitions that are mostly lower end.
The only addition I think fits well is SLH, and even that doesn't work well because we don't get the Hyatt program benefits while staying there.
Now this.
Fire Hoplamazian and get back to growing Hyatt core hotels.
Aug 16, 2021, 5:49 am
#41
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Ever since Hoplamazian took over, Hyatt's been making one poor decision after another IMO.
Changed the loyalty program including coming up with dorky names for each level.
Acquired Miraval. Three hoity toity resort spas that seem like a bad fit with Hyatt.
Several other acquisitions that are mostly lower end.
The only addition I think fits well is SLH, and even that doesn't work well because we don't get the Hyatt program benefits while staying there.
Now this.
Changed the loyalty program including coming up with dorky names for each level.
Acquired Miraval. Three hoity toity resort spas that seem like a bad fit with Hyatt.
Several other acquisitions that are mostly lower end.
The only addition I think fits well is SLH, and even that doesn't work well because we don't get the Hyatt program benefits while staying there.
Now this.
SLH, not a pure integration, but there is earn & burn, breakfast, 1 cat upgrade, late check-out/in, etc...looking forward to my 1K EUR/night stay at a SLH in a few weeks on points.
Don't think anyone wants to see Hyatt go low end like larger competitors, hopefully there are some asset sales on the lower tier ones.
Aug 16, 2021, 5:57 am
#42
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Investors may want Hyatt to have more “low end” exposure (really more mid to upper mid). In many cases low end dramatically outperformed stuff like Hyatt Regency in recent years. These particular hotels seem a bit out of place but Hyatt needs more limited service and more moderate tier stuff If if wants to grow, as it clearly does. You need all of it honestly
Aug 16, 2021, 6:19 am
#43
Join Date: Dec 2000
Location: Philadelphia
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Investors may want Hyatt to have more “low end” exposure (really more mid to upper mid). In many cases low end dramatically outperformed stuff like Hyatt Regency in recent years. These particular hotels seem a bit out of place but Hyatt needs more limited service and more moderate tier stuff If if wants to grow, as it clearly does. You need all of it honestly
I can't imagine any of the consolidator stuff will get Hyatt branding, and will probably be a separate corporate silo altogether. Beyond that, Hyatt just got themselves into an established upscale/luxury leisure market at a time when business travel looks to have hit a stumbling block.
Aug 16, 2021, 6:34 am
#44
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So this brings in a bunch of warm-weather resort properties in Mexico and island stuff in the Americas, a lot in Spain, and a spattering of other stuff serving Europe in and around Europe. And most of these properties are generally filled up to a very large extent by charter flight tourists or other package deal tourists.
It will be interesting to see what happens with Hyatt’s program benefits and award pricing for its growing portfolio of warm-weather resort properties, but I’m betting that it won’t be great point pricing for most of these properties and wouldn’t be surprised if even status benefit restrictions come in place to some extent with at least some of these additions to the Hyattsphere.
At least pre-pandemic, prices Europeans pay for some of these all-inclusive properties during peak school break periods can be quite high for the value despite what can be considered questionable condition and service offerings.
It will be interesting to see what happens with Hyatt’s program benefits and award pricing for its growing portfolio of warm-weather resort properties, but I’m betting that it won’t be great point pricing for most of these properties and wouldn’t be surprised if even status benefit restrictions come in place to some extent with at least some of these additions to the Hyattsphere.
Are the really taking over all Alua hotels & resorts? When I visit the Alua web site, I see 29 properties on the Balearics (Mallorca/Menorca/Ibiza) alone, including some properties not branded Alua but Linda Hotel, Oberoy Hotel, and so on.
I really question whether Hyatt can get this to work without selling off some properties. They are a relatively small chain by member and room count. (They are a big player if you go by revenue due to the heavy focus on the luxury and premium segments.) Furthermore, their customer base is heavily tilted towards North America. Maybe a chain with a stronger presence in Europe like Accor or IHG could swing this but Hyatt? Keep in mind Hyatt always tries to be the "premium" option within a class/hotel category. Some investment in those properties and raising room rates would be more typical of Hyatt than drawing the crowds through low, low prices.
I really question whether Hyatt can get this to work without selling off some properties. They are a relatively small chain by member and room count. (They are a big player if you go by revenue due to the heavy focus on the luxury and premium segments.) Furthermore, their customer base is heavily tilted towards North America. Maybe a chain with a stronger presence in Europe like Accor or IHG could swing this but Hyatt? Keep in mind Hyatt always tries to be the "premium" option within a class/hotel category. Some investment in those properties and raising room rates would be more typical of Hyatt than drawing the crowds through low, low prices.
Last edited by GUWonder; Aug 16, 2021 at 6:41 am
Aug 16, 2021, 6:47 am
#45
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More brands for Brand Explorer free nights! 
And if I get a nice, cheap off-season in Spain way to mattress run / staycation some Hyatt elite nights this deal is a winner for me...
And if I get a nice, cheap off-season in Spain way to mattress run / staycation some Hyatt elite nights this deal is a winner for me...