Hyatt partners with German hotel chain on latest European expansion
Hyatt isn’t done expanding into Europe.
The Chicago-based hotel conglomerate’s $2.7 billion Apple Leisure Group acquisition might have seemed like a play for all-inclusive resorts, but the takeover boosted Hyatt’s European footprint by 60%. However, Hyatt’s appetite for Europe wasn’t satisfied there: On Thursday, the company announced a strategic partnership with German hospitality company Lindner Hotels AG.
While the Lindner deal isn’t an acquisition like the ALG play last November, the new partnership means more than 30 hotels across seven European countries will join the Hyatt brand portfolio and integrate into the World of Hyatt loyalty program. Most of the Lindner properties are expected to transition into the JdV by Hyatt brand, which is a collection of independent hotels offering more distinct flavor than, say, a stand-alone Hyatt Regency.
“The addition of Lindner’s desirable hotel portfolio will substantially grow Hyatt’s brand footprint in Germany and bring our guests and ultimately our World of Hyatt members to a variety of new destinations across Europe including Kiel, Leipzig, Sylt, Bratislava and Interlaken,” Hyatt CEO Mark Hoplamazian said in a statement. “We are grateful for the trust the Lindner team is placing in us and are excited to strengthen our collective guest offering through strategic capital investments being made by Lindner into the portfolio.”
A Hyatt spokesperson declined to provide any financial details of the partnership or whether, given the branding shifts, the partnership was only a stepping stone to an eventual acquisition.
While not a takeover, the Hyatt-Lindner partnership does play into the growing hotel industry ideology that major hotel companies are likely to grow with "bolt-on" or "tuck-in" deals that fill in geographic or branding blank areas. In the past, Marriott achieved one of these deals in Europe with AC Hotels; the deal gave Marriott a geographic lift before the U.S. company heavily expanded the brand around the world.
Brand strategy
Lindner may not be a household name in the U.S., but Hyatt portrayed the deal as one that gives it a lift in the lifestyle hotel segment. Lifestyle hotels typically put more emphasis on food and beverage as well as design. The JdV by Hyatt brand, which many of the Lindner hotels will fall under, bills itself as a “collection of original hotels with a deep respect for the neighborhoods that make up each destination.”
The Lindner website, however, shows a portfolio of hotels that appear to range beyond the lifestyle hotel segment. A mix of airport and business travel hotels as well as more leisure-oriented hotels are under the Lindner umbrella, per the company website. The company operates two brands: Lindner Hotels & Resorts, and Me and All Hotels.
There's no public knowledge about which hotels would specifically get shifted to JdV branding under the deal, but the new partners touted the joint benefit of working together. While Hyatt gets a bigger foothold in Europe, Lindner gains better global support and brand recognition.
“This type of collaboration is truly unique in the German market,” Lindner CEO Arno Schwalie said in a statement. “As part of the JdV by Hyatt brand, Lindner remains a strong brand with its own identity and corporate independence, now aided by the power of Hyatt’s global brand awareness and first-class sales and marketing capabilities.”
Bottom line
Hyatt’s attention to Europe during the pandemic was initially a curious one, as most of its competitors continued to focus on China. Many expected Europe to be the last geographic region to recover from the coronavirus pandemic due to an increased reliance on international tourism.
Instead, the European strategy appears to be the smart one. China’s reopening plans for international travel remain uncertain, and tough lockdowns continue to pop up in certain cities that see new case spikes. Europe, on the other hand, appears to be booming on the hotel front despite geopolitical tension during the invasion of Ukraine.
European hotel performance was up 14% from 2019 levels at the end of last month compared to a 22% decline seen in China, according to STR.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.