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Hyatt to Acquire Dream Hotel Group

Hyatt to Acquire Dream Hotel Group

Old Nov 29, 22, 8:01 am
  #1  
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Hyatt to Acquire Dream Hotel Group

It seems Hyatt's micro-brand madness won't stop: plans were just announced to acquire Dream Hotel Group and its related brands of Dream Hotels, The Chatwal Hotels and Unscripted Hotels for 125 million USD. This acquisition will bring 12 new hotels into Hyatt, along with the group's pipeline of 24 properties.

At this rate, I'm getting more frustrated than excited by Hyatt's growth. Instead of comprehensive brand portfolios with decent footprints, we're getting a collection of brands with a handful of hotels in them that are mostly peppered in the United States, with gaping holes in Europe, the Middle East, Africa and Australia/Pacific. Since Hyatt plans to keep these brands, they'll have 29 - nearly as many as Marriott, and without the footprint or rapid expansion that Marriott is belting their brands out with.

Sigh.

khabah
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Old Nov 29, 22, 8:37 am
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Not quite so dreamy. Their recent acquisitions seem lackluster and don't really put Hyatt in a much better position than before.
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Old Nov 29, 22, 8:38 am
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Hyatt faces the same challenges as Hilton and Marriott. The name of the game is growing footprint size in an asset light manner. However, with rising construction costs, interest rates, and lack of land availability, it is harder for developers to build new peoperties, especially "full service" and "luxury" hotels people on Flyertalk prefer. So acquisitions of existing brand and management groups is the next best option, along with hotel conversions. It is a lot easier to buy Dream Hotels than to get somone to build 25 Andaz or Hyatt Centric/Regency or whatever else people want.

I am not a Hyatt loyalist, but I do have a lot of Hyatt points and welcome the opportunity to redeem/earn at hotels like Dream South Beach, which is #8 in the South Beach/Miami Beach market according to TripAdvisor (higher rated than Edition, W, Ritz Carlton, several Kimptons, etc).
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Old Nov 29, 22, 8:41 am
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From the article “Dream Hotel Group properties are known for their vibrant dining and nightlife experiences including hotspot restaurants, lavish entertainment venues and exclusive night clubs built on strategic collaborations with innovative and award-winning industry leaders.”

Gross

I suppose these appeal to lots of people but suspect I’ll try to find a low-key one to get the explorer badge and then forget they exist.
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Old Nov 29, 22, 8:49 am
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https://www.dreamhotelgroup.com/hotels

Open Hotel List:
The Chatwal New York
The Chatwal Lodge
Dream Nashville
Dream Hollywood
Dream Downtown NYC
Dream Midtown NYC
Dream South Beach
Dream Bangkok
Dream Phuket
Unscripted Durham
The Time New York
Margaritaville Times Square (not sure if this is included or not - press release says 12 open hotels, and this makes twelve)

Pipeline:
Chatwal Valle de Guadalupe
Chatwal San Miguel de Allende
Dream Doha
Dream Valle de Guadalupe
Dream Memphis
Dream Atlanta
Dream Cleveland
Dream Dallas
Dream Las Vegas
Dream Oklahoma City
Dream Palm Springs
Dream San Antonio
Dream Louisville
Dream Miami
Dream Frisco
Unscripted Belgium
Unscripted Tulum
Unscripted Oklahoma City
Unscripted Wichita
Cas en Bas Beach Resort
The Bright Turks and Caicos
Emma & Elisa Playa Del Carmen
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Old Nov 29, 22, 8:58 am
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I agree with the posts made above and want to chime in:

Aventine I was interested with the Two Roads acquisition because Thompson had cachet and JdV could serve as a more flexible catch-all for independent properties seeing how slow the expansion of Unbound was, and it would make a convenient complement to the luxury-slanted Unbound by absorbing upscale and upper-upscale properties in the space below where Unbound was positioned. I personally love the dark, moody, mid-century aesthetic Thompson is defined by, and their newer properties in Nashville, Dallas, New York and Madrid definitely speak to me... but again, I think of their expansion: Thompson only has seven hotels in their pipeline, with four in the US and nothing new planned beyond 2024. A small, US-focused brand doesn't do anything for the rest of the world, and doesn't build brand recognition or loyalty beyond an audience familiar with it.

Adelphos True re all the rising costs and scarcity of land. I was having a few conversations with different hotel owners and execs, and a common theme we've all shared is that if you're a small chain of hotels with a recognizable name, you'll probably be picked up by one of the big players since acquisitions are the best way to expand without building. As a customer, however, I echo the same point as above: why keep a brand if you're only going to have a handful of hotels in it?

Hyatt would have done well to consolidate their portfolio before some of these later acquisitions came in - i.e. weeding out the plain Hyatt brand [often discussed but never implemented], realigning Andaz, eliminating Destination Hotels, reworking the seven brands that came with ALG and bringing them down to, say, four. Having Chatwal be a standalone brand with just two properties - both in New York, no less - when it could just be rolled into the Unbound Collection the same way all 30+ Lindner hotels are going into JdV, adding Dream as a new Boundless brand and sticking the single-property Unscripted into the mix boggles my mind. Sticking these properties into Thompson, Unbound and JdV would've built out those brand portfolios better and made things much easier to work with.

I'll close with this nugget: once the deal closes, Hyatt will have two very different brands called... Dream and Dreams.

khabah
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Old Nov 29, 22, 9:18 am
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Note that Chatwal New York is currently flagged as Marriott Luxury Collection.

Based on the history with Marriott, I'm guessing it comes in as a Cat 7 or 8, with rates very high for the size of the rooms and very limited upgraded potential. At least now they'll presumably have to provide a real breakfast benefit.
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Old Nov 29, 22, 9:22 am
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Originally Posted by Adelphos View Post
Margaritaville Times Square (not sure if this is included or not - press release says 12 open hotels, and this makes twelve)
The Globalist welcome amenity will be a shaker of salt.
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Old Nov 29, 22, 9:54 am
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Did I miss something? In the press release they didn't mention keeping them as standalone brands nor integrating them to current collections.
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Old Nov 29, 22, 10:05 am
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Originally Posted by PG.backpacker View Post
Did I miss something? In the press release they didn't mention keeping them as standalone brands nor integrating them to current collections.
From the release:

Dream Hotel Group CEO Jay Stein will join Hyatt as Head of Dream Hotels to guide the integration of the Dream Hotel Group brands into the Hyatt portfolio, ensuring the unique DNA of each brand is preserved while leveraging Hyatts capabilities to optimize property performance. Additionally, Dream Hotel Groups Chief Development Officer David Kuperberg will join Hyatt as Head of Development Dream Hotels; Chief Operating Officer Michael Lindenbaum will join Hyatt as Global Head of Operations Dream Hotels.

Since the unique DNA of each brand will be preserved and DHGs key execs are moving over to Hyatt, I read this as the brands are going nowhere.

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Old Nov 29, 22, 10:31 am
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I don't read too much into that, those executives could be staying long-term to continue building the brands, or they could stay short-term during transitioning period, or just for symbolic reasons like Alejandro Reynal (former ALG President & CEO, who quickly jumped to Four Seasons).

Also, it's not the first time Hyatt and other chains put the whole portfolio of brands to one of their collections:
  • For Hyatt, there are Quirk hotels (ex-Destination), 7Pines (Destination), Story hotels (JdV), Lindner (JdV);
  • For Marriott, there are ITC, Hacienda, Domes integrated to The Luxury Collection
It's best we wait until the deal close and those properties join WoH to give judgement.
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Old Nov 29, 22, 10:49 am
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I don't really see the problem with adding more brands to the Hyatt portfolio. It means more chances to get the "Brand Explorer" free night, and a hotel to earn/redeem Hyatt points is a hotel to earn/redeem Hyatt points.
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Old Nov 29, 22, 11:26 am
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Hyatt is turning into a collection of boutiques! Agree with the sentiment that they need to strengthen their core brands.
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Old Nov 29, 22, 12:10 pm
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The Chatwal in NYC seems like a good addition.
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Old Nov 29, 22, 2:10 pm
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Marriott did expand fast but theres a reason I and others jumped ship to stay at Hyatt properties whenever possible.

Id rather they expand slowly while keeping more brand and elite benefit consistency if thats the trade off.
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