Hyatt announced plans to grow its portfolio in Europe “significantly” by the end of 2023 with more than 20 managed and franchised deals, including several in the UK.
The UK was named as a “priority growth market”, with news of the first Park Hyatt hotel in London’s redeveloped Nine Elms.
Hyatt planned to nearly double its brand growth in the UK in the next few years, and this growth was complemented by sdemand in France and Spain – through the development of both Hyatt’s full and select service brands – as well as entry into new markets with the first Hyatt-branded properties in Stockholm, Helsinki, Malta and Cyprus.
Andaz, Alila, and Hyatt Centric – Hyatt’s lifestyle brands – and The Unbound Collection by Hyatt – one of Hyatt’s independent collection brands – made up half of Hyatt’s executed deals in Europe.
Peter Norman, SVP real estate & development EAME/SWA, Hyatt, said: “Hyatt is in the process of transforming the hotel landscape in Europe with planned openings for new Hyatt-branded hotels in some of the most sought-after leisure destinations in the world.
“Supported by strong brand recognition and demand for the high-quality experiences for which Hyatt is known, we look forward to welcoming guests and World of Hyatt members in these key European destinations. Further, with half of Hyatt’s executed pipeline in Europe consisting of franchise agreements, we are thrilled to collaborate with a number of new, as well as existing, owners to bring these exciting projects to fruition.
“Because of today’s unprecedented business climate, owners of independent hotels are understandably looking for a reputable brand with strong distribution channels for added support, which makes hotel conversions a big growth driver for Hyatt through our independent collection brands, including The Unbound Collection by Hyatt. At Hyatt, we have always taken a flexible and thoughtful approach to crafting deals that benefit both parties, and now more than ever, the success of that approach is evident. Because Hyatt-branded hotels have not oversaturated many European markets, we continue to intentionally grow our brands in places that matter most to our guests.”
Earlier this year Hyatt said that it was not considering any significant M&A, but said that it was “possible” that, with some independent platforms under pressure, it could consider an acquisition.
The company’s total liquidity was over $3.1bn, with CFO Joan Bottarini commenting that it would allow the group to operate at current levels for at least 30 months. When asked about the potential for M&A, Hoplamazian said: “I think that it’s possible that there are some independent or smaller management platforms that might have other stresses and strains with their owner communities and alike, where we might be able to either be helpful by way of a partnership, a venture of some kind or by a way of an acquisition.”
Insight: Hoplamazian was not too chipper about Europe at the group’s third-quarter results, it was all “think of Europe as basically in flux” and “caseloads are increasing daily and to new records in Europe” and so on and so forth.
However, for the well-capitalised Hyatt, nothing is off-putting, not even Brexit, and the company was keen to explore conversions, which were expected to account for more than 25% of net rooms growth this year (although not on the strongest year on record).
Hyatt has an enthusiasm for Europe, which it expressed in its move on NH Hotel Group and which it continues to show now. Today this is across its gamut of brands, but, with $3.1bn in its back pocket, there can be no doubt that it is looking for a decent leg up in the region too.