Hyatt's Studio Room Growth Surpasses 25% in Americas Pipeline

Hyatt Hotels Corporation has announced significant growth in its select service pipeline, with a 25% increase in the Americas over the past three years. As of June 30, 2024, this segment represents over 50% of Hyatt’s total pipeline in the Americas. In addition to growth in lifestyle, luxury, and all-inclusive offerings, Hyatt's select service portfolio remains a key driver for market expansion. It is crucial in generating awareness and enrollment in World of Hyatt, the industry's fastest-growing loyalty program. Through owner-driven innovation, Hyatt is advancing its select-service brands by focusing on operational efficiency and profitability.

"Across our select service brands, we are strategically adapting product design and operations to reduce construction costs, leverage technology, and allow for greater customization," said Dan Hansen, head of Americas development at Hyatt. "While prioritizing what matters most to our guests and World of Hyatt members, we will continue to grow and evolve with intent, delivering exceptional guest experiences and maximizing owner profitability.”

Evolving the Caption by Hyatt brand with owner input

Hyatt’s contemporary upscale select service brand, Caption by Hyatt, has launched a refreshed approach with increased market flexibility, a more efficient food and beverage model and an evolved prototype design. These enhancements, shaped by owner and guest feedback, enable expansion into a broader range of markets with a simplified, more cost-effective prototype and efficient operating model that preserves the brand’s core identity as a neighbourhood connection point. 

Design updates bring a sophisticated touch to guestrooms and public spaces while maintaining the brand’s vibrant spirit. Notable guestroom enhancements include a more refined colour palette, softer lighting and upholstery, and artwork elements that celebrate the locale. Public spaces remain spacious with rich colour accents and materials thoughtfully selected for longevity and timeless appeal.

The reimagined food and beverage model emphasizes efficiency and flexibility. It features a fast-casual concept and a versatile menu that transitions from breakfast to all-day options, streamlining preparation and ingredients. Owners can adopt this concept or collaborate with a third-party operator, reducing investment while keeping the offering appealing to guests. With two recent openings in Asia Pacific in 2024 and more locations expected to open across the U.S. in 2025, the Caption by Hyatt brand is poised for continued global growth.

Growing the Hyatt Studios brand to over 4,000 pipeline rooms

In the 18 months since it was announced, Hyatt's first upper midscale extended stay brand, Hyatt Studios, has shown impressive growth. It is rapidly expanding, with over 4,000 pipeline rooms and 250 deals in various stages of negotiation. Reflecting Hyatt's unexplored opportunities in this segment, nearly half of the pipeline properties represent first-time Hyatt owners and are in new markets for Hyatt.

The brand's progress is evident, with two recent groundbreakings and four hotels currently under construction. These hotels are expected to open in 2025 and 2026. Hyatt Studios Harrisonburg broke ground on September 5 across from the Sentara Medical Center in the Shenandoah Valley. This is one of three deals executed by Suburban Capital in Virginia, with plans for additional locations in Chesapeake and Charlottesville. Hyatt Studios Texarkana, developed by DPN Properties, broke ground on September 26. It is located on the Texas-Arkansas border, along major highways and near key medical and military institutions, representing a new market for Hyatt.

Newly executed deals include:

Enhancing the Hyatt Place and Hyatt House brands

Hyatt House and Hyatt Place, two of Hyatt’s most recognized brands, are undergoing exciting upgrades driven by owner and guest feedback. The upscale extended-stay brand Hyatt House, known for its ability to make guests feel at home, now offers a new generation of enhanced guestrooms. The updates include refreshed kitchen and living spaces, new kitchen islands, media consoles, and hard-surface flooring. The upscale Hyatt Place brand is currently in a test-and-learn phase, focusing on reducing construction costs and improving operational efficiency. This involves analyzing all aspects of the prototype, including room layout, exterior and interior materials, and streamlining the interior design.

“We’ve been carefully listening to guest and owner feedback, including insights from our recent Owners Advisory Council, to evolve the Hyatt Place brand. By maintaining an open dialogue, we’re finding new ways to boost owner profitability while continuing to deliver the high-quality experience that guests expect. Stay tuned for exciting updates in the coming months,” said Jim Tierney, SVP of development and owner relations at Hyatt.

Hyatt's World of Hyatt loyalty program, which has 44% more members per hotel than its larger competitors, continues to boost direct business growth, especially among Hyatt's select service portfolio. Recent member promotions for the Hyatt House and Hyatt Place brands led to a 50% year-over-year increase in directly booked nights from existing members who participated in the promotion. Additionally, there was a decisive engagement in the new '2K Next Stay' milestone award, which grants members 2,000 Bonus Points on their next stay at a select service brand hotel after reaching 20 Qualifying Nights or 35,000 Base Points.