Hyatt Hotels announced Wednesday that it plans to open more than 50 luxury hotels and lifestyle properties worldwide by 2026. But perhaps more interesting is how the Chicago-based hospitality giant is courting independent-minded hoteliers who have traditionally avoided partnering with major chains. .
Katie Johnson, the group’s global brand leader for independent lifestyle and soft brands, said: “[Some hotel owners]want the distribution and resources, but partnering with Hyatt is a big deal for lodging. I don’t want customers to know.”
Take, for example, Hyatt’s response to Hotel La Compaña in Panama City’s historic center. Owner Chris Lentz, a local businessman, still frequently greets guests at the door and gives impromptu tours of his property, which has been restored by the design firm SODA.
Johnson says it’s this kind of hands-on hospitality that surprises Instagram influencers.
“The point is, you won’t find the Hyatt logo anywhere unless you’re really looking for it,” Johnson told Skift at the ILTM Cannes luxury travel show.
Bet on soft brands
One pillar of Hyatt’s luxury strategy is to build soft brands, a collection of hotels that leverage Hyatt’s distribution network while maintaining their own unique identity.
Hyatt provides sales power and operational support to hotel owners without requiring them to prominently display the Hyatt name on their hotels or give up their unique way of operating their hotels.
Soft brands like Unbound Collection by Hyatt are less subject to the rules or “standards” of Chicago-based Hyatt headquarters than so-called hard brands.
Currently, approximately 20 ownership groups are developing multiple properties within Hyatt’s soft brands (The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt), and Mr. Johnson They are building what they call a “microchain.”
“For some of them, the hotel is a passion project or something that relates to their family’s heritage,” Johnson said. “They want their own creative license to celebrate a destination’s culture and community in a very intimate way.”
strategic move
Hyatt said its commitment to premium comes as the company has doubled its number of luxury rooms since 2017, with 70% of its rooms worldwide now classified as luxury or upper grade.
However, many wealthy people have already experienced traditional luxury brands and are looking for something unique and surprising.
That’s why Hyatt is walking the tightrope of achieving some scale efficiencies while maintaining the hotel’s independent spirit.
measuring success
Unlike traditional franchise relationships, Hyatt’s soft brand approach includes minimal rules.
“We don’t give them a playbook,” Johnson emphasizes. “They have to meet brand standards because they are part of Hyatt and they have to provide a higher level of service, but when it comes to the guest experience within the soft brand space, it’s up to them to define it. Masu.”
The company has developed its own metrics to measure success in this area.
For example, with the Unbound Collection, Hyatt is tracking whether guests see the collection’s relevance and feel connected to each property’s unique story, or what Johnson calls “story-worthy” elements. Masu.
Battle for hotels
Hyatt isn’t the only company leveraging soft brands. Choice’s Ascend Hotel Collection pioneered this concept. Current soft brands include Hilton’s Tapestry Collection and Marriott’s Autograph Collection.
But Hyatt has positioned itself as particularly suited to independent luxury hoteliers, touting its relatively small size as an advantage.
“Because we’re not the biggest company, we can be more flexible, more hands-on, and more nimble,” Johnson said. “What makes us strong is our personal connections with owners, operators and colleagues.”
Mr. Johnson’s job is to promote Hyatt as the perfect umbrella for creative, independent hoteliers. She says she spends about 30 percent of her time wooing her owners.
“We do a lot of training on how to define luxury and how to ensure an unscripted, unparalleled, elevated guest experience,” Johnson said. “This doesn’t happen at Hilton, Hilton, Marriott.”
Hear from the owner
Hyatt has established an Owner Advisory Board that meets twice a year to pressure test new initiatives and provide feedback.
This led to change. Owners recently highlighted the need for better storytelling on Hyatt’s digital platforms to differentiate their properties from the company’s business-focused brand.
In response, Hyatt is working on a “personalization engine” for its website to better showcase its properties by matching travelers with relevant hotels.
Separately, quarterly virtual training programs will share best practices across the region and regular brand assessments will strengthen facility positioning.
“We give hotel owners the flexibility to create this authentic luxury experience, while at the same time following best practices to ensure we provide an unparalleled experience to the guests who walk through our doors. We’re trained,” Johnson said.
Year-to-date performance of the Lodging Sector Stock Index
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The soft brand has helped Hyatt break away from its temporary reputation as a brand for business travelers and corporate events. The company announced Wednesday that 70% of its rooms worldwide are now considered luxury or luxury rooms.
