Hyatt CEO talks Mr & Mrs Smith integration and bringing all-inclusive resorts to the Middle East
Hyatt’s grip on luxury and lifestyle hotels expanded last week with news the Chicago-based hotel giant plans to acquire the Mr & Mrs Smith booking platform of more than 1,500 luxury boutique hotels.
But that doesn’t mean the company is going to do any better than a major competitor it’s snatching the brand from.
At face value, Hyatt’s gain comes at the expense of IHG Hotels & Resorts, which currently has a partnership with Mr & Mrs Smith where IHG One Rewards members can earn and redeem points when staying at participating Mr & Mrs Smith hotels.
There have been complaints that it was always a little clunky booking a Mr & Mrs Smith hotel from IHG because not every one of the 1,500 or so hotels participated in the partnership. It also took some scrolling or removing of brand options on an IHG search to actually find any of the Mr & Mrs Smith hotel options.
“Even if Hyatt owns the booking platform, how’s it going to do any better herding these hotels into its World of Hyatt orbit?” This is a question I’ve been getting a lot over the last week from readers and analysts.
Hyatt CEO Mark Hoplamazian wasn’t exactly providing much in the way of details on the company’s Thursday investor call to report first-quarter earnings.
“We will be very careful in how we integrate the hotels that are part of the system,” Hoplamazian said in response to a question regarding how Mr & Mrs Smith hotels might compete in some markets against preexisting Hyatt properties. “All the hotels we expect to stay on the [Mr & Mrs Smith] platform, but that doesn't mean that they'll all be integrated.”
Think along the lines of Hyatt’s partnership with Small Luxury Hotels of the World, where not all SLH properties participate. But isn’t that a little strange considering, well, Hyatt will actually fully own the Mr & Mrs Smith platform?
TPG reached out for more details on what the integration process will look like. We didn’t get much intel.
“Hyatt is evaluating, but we're not able to share specific examples,” a Hyatt spokesperson said in response to TPG’s query regarding Mr & Mrs Smith integration and competition with existing Hyatt hotels. “We'll have more details about Mr & Mrs Smith integration into World of Hyatt following the deal close.”
Specifics might be limited, but there was a lot of fodder on Thursday’s call about why Hyatt is acquiring the Mr & Mrs Smith brand.
Hyatt has been on a luxury and lifestyle hotel buying spree for several years, from the Two Roads Hospitality acquisition that added the Thompson Hotels and Joie de Vivre (now JdV by Hyatt) brands to the more recent $2.7 billion Apple Leisure Group acquisition that beefed up Hyatt’s presence in the luxury all-inclusive resort sector. Most recently, Hyatt acquired Dream Hotel Group, providing a boost to the company’s New York City presence as well as the broader lifestyle hotel sector.
The Mr & Mrs Smith deal adds to that theme, but it brings in a mix of much smaller hotels than is typically expected with major brand and loyalty affiliation. But these also play into Hyatt’s game of pricey luxe hotels: The typical nightly rate of a Mr & Mrs Smith hotel is in the mid-$400 range, Hoplamazian said.
“They’re small, so these are not hotels that would naturally be part of a larger brand company like our portfolio, and we feel like this is a massive expansion in the World of Hyatt members’ access to hotels,” he added.
Our eyes will be focused on how easy it is to integrate all those hotels at a level where members can earn and redeem points on a widescale basis.
Hyatt’s business travel comeback
It was a strong quarter for Hyatt, as the company posted a $58 million profit. Part of that stems from the broader hotel industry’s recovery from the pandemic — riding on strong leisure demand and high hotel rates.
The company’s overall hotel performance in March was 8% ahead of 2019 levels and set an all-time record in the company’s history, according to Joan Bottarini, Hyatt’s chief financial officer.
Expect higher hotel rates to maintain and even grow, as Hyatt leaders were the latest in the industry to say they anticipate better-than-expected results for the duration of 2023.
The recovery in Asia Pacific, as well as increasing group and business travel demand, provide that optimism.
Hyatt’s all-inclusive plans go global
Hyatt’s Apple Leisure takeover provided a major lift for the company’s presence in the all-inclusive resort sector as well as in Europe. Hyatt’s Europe footprint expanded by 60% thanks to the deal. But it now has its eyes set on taking Apple Leisure brands, which include offerings like Secrets and Dreams, farther abroad.
“We have been responding to and pursuing additional regions in the Middle East and in Asia, so I would be surprised if we did not end up with new projects in those two regions in short order because the interest level is very high,” Hoplamazian said.
While Hyatt has a significant presence in both regions with its traditional hotel brands, it doesn’t currently operate any all-inclusive brands in these parts of the world.
“It would be a relatively new format for much of those regions, so we're taking it very carefully,” Hoplamazian added.
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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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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.