Hyatt just launched a new brand for affordable, long-term stays
Even in the worst months of the pandemic, extended-stay hotels were a surprising bright spot in the travel industry and maintained the highest occupancy rates across all hotel sectors.
The industry noticed, and major brands all started making various plays to add an extended-stay hotel brand to their lineup. Hyatt became the latest on Tuesday by announcing Hyatt Studios, the company’s 28th brand.
Hyatt Studios is the company’s first “upper-midscale” brand in the Americas (UrCove by Hyatt is an upper-midscale brand that operates exclusively in China). It aims to court both extended-stay travelers as well as shorter-stay leisure and business customers.
If you're wondering what, exactly, upper-midscale means, hotel data firm STR lists brands like Comfort Inn, Hampton and Holiday Inn within this category.
The traveler mix will likely depend on the location of each hotel. However, Hyatt Studios guest rooms across the brand will all have one key feature of extended-stay property: a kitchenette where you can prepare meals while away from home.
A change in tune?
Earlier this year, Hyatt appeared to be notably bucking the trend of major competitors like Marriott International and Hilton, both of which were moving toward more affordable hotel brands. Instead, Hyatt remained focused on higher-end travel with luxury and lifestyle hotels and luxury all-inclusive resorts.
However, offering more affordable options like Hyatt Studios — which will be clustered in a select-service brand mix that also includes Hyatt Place, Hyatt House and Caption by Hyatt — gives the company a presence in smaller markets that might not be able to support more expensive offerings like Thompson Hotels or Park Hyatt.
“We identified a white space for Hyatt, creating a compelling opportunity to significantly accelerate our industry-leading net rooms growth, care for World of Hyatt members on more stay occasions and introduce World of Hyatt to new guests in a new segment which we expect will drive increased direct bookings for all properties across the Hyatt portfolio,” Jim Chu, Hyatt’s chief growth officer, said in a statement.
The company claims it has signed letters of interest in development agreements from multiple hotel developers for more than 100 Hyatt Studios hotels. Construction on the first hotels is expected to begin later this year, and the first Hyatt Studios hotel is slated to open in 2024.
Hyatt Studios will only feature new-build hotels compared to other brands that sometimes grow by converting existing hotels.
Along with the in-room kitchen, Hyatt Studios will offer free grab-and-go breakfast and a 24-hour market that sells ready-made meals and snacks that can be prepared in the room. Renderings provided to TPG show guest rooms also feature a seating area, a flexible workstation and open shelving for storing luggage and clothes.
Company leaders maintain that Hyatt Studios will still target higher-end clientele in the market it operates.
“As with all brands in the Hyatt portfolio, Hyatt Studios hotels will appeal to the high-end guest within its segment,” Amy Weinberg, Hyatt’s senior vice president of loyalty, brand marketing and consumer insights, said.
Acknowledging "a sea of interchangeable extended-stay competitors," Weinberg said Hyatt Studios hotels will provide "both the coziness of a studio apartment and the positive energy of being in a creative studio, all with the quality and contemporary style that is characteristic of Hyatt.”
The battle for the budget traveler
Hyatt might focus more on high-end travelers, but Hyatt Studios still enables the company to go after more budget-conscious travelers. They aren’t the only ones in this increasingly crowded space by the biggest hotel companies.
Marriott is expected to soon close on a deal to acquire Mexico-based City Express, a chain of affordable midscale hotels across Latin America. There is potential for the company to expand that brand globally as it did with AC, originally a Spanish chain of hotels.
Hilton’s premium economy Spark brand is expected to roll out later this year, and Hilton’s CEO Christopher Nassetta earlier this year noted that while the brand might not be “sexy,” it also had “an opportunity to be a value contributor in the billions of dollars for this company and its shareholders” and that he was “as excited about this as anything else.”
So, what explains the sudden push into more affordable options?
Think of it as a starter car for the hotel orbit. If you provide younger customers with less disposable income with a more affordable brand, you have the potential to retain them as they grow up, make more money and can start shelling out for those costlier brands.
“The sooner you get them into the system and [start] building loyalty with them, the better off you are,” Nassetta said of Spark on an investor call in February.
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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.