Why Hyatt Is Choosing Luxury Over Affordability | WSJ The Economics Of

Marriott and Hilton are five times larger than Hyatt by property count. But Hyatt’s portfolio shows it wants to play in a different league. With 70% of its rooms categorized as luxury and upper upscale, Hyatt has the highest average daily rate. So how is the hotel chain’s plan working for the company?
WSJ explores this strategy and how it attracts more than just overnight guests.
Chapters:
0:00 Hyatt’s size
0:34 Selling off assets not in luxury tier
1:10 Acquiring more luxury brands
2:31 Building a luxury audience
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
#Hyatt #Hotel #WSJ

[@wsj]

The gap between the price you see and what you pay is getting worse: on.wsj.com/4btISeH

[@WilkinsonX]

I stayed at the Park Hyatt in Tokyo and it was the most impressive hotel I’ve ever seen. Perfectly immaculately clean and beautiful in every way.

[@kriskalpa]

That is a great Hotel, and location.

[@LBSeeinYa]

And it’s now closed for a year and a half for a complete renovation.

[@CoralRider]

My favorite city hotel in the world. I hope the renovation won't alter the timeless decor too much!

[@lewizzrocks]

But isn’t that Tokyo for you in general?

[@LebronCCP]

@@lewizzrocks you've never stayed in an apa hotel have you

[@NicksDynasty]

Hyatt has the best loyalty program. They treat us well. Their points are so valuable

[@ssuwandi3240]

Ohh dear..key😊

[@casanova0102]

They also have great marketing ;)

[@cocheshiperdesportivos7181]

hyatt goes after the best 10% of the hotel accomodation business worldwide. smart

[@juliansutton5819]

Funnt enough, I essentially exclusively stay in Hyatts, and I rarely have actually paid. Their points value is a lot better than others.

[@SJ-lt6yf]

is this how WSJ doing advertising for companies these days?

[@rundown132]

you know it

[@markscarupa6201]

I just stayed in the Park Hyatt, Istanbul. Luxury rivaled Asian luxury brands such as Banyon, Taj or Raffles. I was really impressed.

[@PGproductionsHD]

Constantinopole?

[@vsznry]

Wow a Marriott & Hyatt vid in one day

[@_admirr8]

Hyatt has accommodations and support that has always exceed the value I pay. Our overnight stay in San Antonio most recently at the Grand Hyatt was a amazing our mini golden doodle was welcomed we had 16 ft moving truck that was valeted (we called in advance to ensure space) and we felt safe sleeping with our U-Haul protected and the comfortable beds at the Hyatt! What an experience and it was connected to river walk which made it nice for us to take the dog out to walk and enjoy some tourist stops while moving to Arizona!

[@yijiequ662]

I stayed in Hyatt over Shanghai.. not a central area, some sort of suburb, it looks like a gated community.. i was paying something like 70.00 a night with full buffet breakfast... however, i noticed if you book from Booking or Expedia, it actually cost more.. lol... i do see how they wanna push to overseas.

[@th0master]

Booking direct is (almost) always cheaper, platforms like booking and Expedia take a %

[@rcbrascan]

@@th0master If you book airfare with the hotel, the whole package is much cheaper than doing it separately. Also if you book directly, you are charged a whole bunch of junk fees that most does not apply to Expedia.

[@shumr]

i guess in chongming? most hyatt hotels in shanghai have really bad reviews. next time try park hyatt suzhou and grand hyatt hangzhou. they are the two great gems around shanghai hyatt hotels.

[@amochswohntet99]

There was an AYSO board member convention that my mother had to go to in Long Beach. We stayed at the Hyatt there, and it made a great impression on me as a kid. Amazing hotel.

[@johnl.7754]

Hyatt got me in their loyalty program with their credit card even though I am not wealthy. I stay just a couple times a year.

[@jackxu02140]

Chase's relationship with Hyatt is a significant value proposition for its UR program as well.

[@jamiecornista]

I stayed in the Hyatt Regency Chicago last year and loved it. Whereas the Hyatt in San Francisco Union Square was more lackluster. Really depends on the location I guess.

[@strengthandgracemovement9117]

let's not forget their customer service which is top notch! Of all the hotel chains Hyatt is the best! They don't penny pinch and they interact authentically with their guests. Smaller footprint but way better experience x10. We go out of our way to stay at Hyatts each and every year.

[@LMays-cu2hp]

Thank you for sharing.😊

[@jskim8418]

It’s a mass hotel chain, which tries to fit in the middle class of say.. between M/O Four Seasons and the normal Marriott Hilton mass chain brands. And it works.

[@TheCameraGirly]

I am a huge fan of Hyatt I've been a member for years, even though they have smaller market share their brand is 100%

[@shttc900]

I'm Hilton Diamond and have seen no discernible difference in quality of service, upgrades, or anything of that nature. The Points Guy raves about the Hyatt CC and this video is pushing me further into that direction.

[@LegendaryGTR]

so they averaged out the gross revenue of how many properties they had and thats how they came up with the average? Not every property that is a hyatt franchise is rated above 4 star let alone worth 200 a night...

[@doujinflip]

I seem to be an outlier compared to every other reviewer, but when I began developing my lodging loyalty over a decade ago I never found myself any more wowed by a Hyatt stay compared to a Marriott or Hilton one. I have yet to see any advantage as a World of Hyatt member that makes up for its lack of availability worldwide. Hence why I’m simultaneously a Hilton Diamond and a Marriott Lifetime Titanium.

[@ozjef]

Look at your cent per point redemption rate on those hilton and marriot redemptions. Pretty poor compared to Hyatt. Hyatt doesn't do fully dynamic award pricing like mariot and hilton have done to inflate their award rates.

[@nevermind1534]

The only advantage to me is how much their points are worth compared to those of their competitors.

[@lexm17]

This comment reads like ChatGPT.

[@huzcer]

Grand Hyatt hotels are quite plush in my experience.

[@AndreyRubtsovRU]

So happy for you 😂😂

[@huzcer]

@@AndreyRubtsovRU well I'm not in that job anymore so those days are gone 😂

[@SnChem]

As a globalist, I love Hyatt. Hands down best hotel program on the market now. Let’s keep it high quality ❤

[@huuuubaah]

Hyatt has the best loyalty program hands down!!!

[@antaeusguy]

If they sell the hotel to outside owners, then the owners do not necessary have the obligation to use Hyatt brands and pay them royalties/share profit right? One fine day, the outside owners can just discontinue using the Hyatt brand and come out with their own, is that a possibility?

[@kriskalpa]

sure, another hotel chain could outbid them for the rights to use the property. But the contracts are long and stipulate that they be given due warning.

[@nikkijamesy2024]

When diversifying, make sure its to countries tht thrive on great customer service. Mandate tht great customer service is pivotal. Trinidad 🇹🇹 customer service need some work. My experience.

[@ctzoomie]

I recently stayed at a Hyatt in Charleston, SC and was not impressed; I expected much better. The toilet flush valve was broken, toilet ghost flushed every 5 minutes. I eventually just turned off the water supply in order to sleep. Secondly, the breakfast was very inadequate, no Danish, fresh fruit was limited to green apples. If they're striving for excellence, they have some wood to chop.

[@ZubairKhan-tt8ev]

The Hyatt place and house?

[@texasoilfields]

The toilet problem is unacceptable. Pity. But I've never experienced a decent complimentary breakfast in the US. Have you?

[@mjerome1457]

I’ve stay a few Hyatt hotels and quality and service was great!!👍🏾

[@chuyenpham3336]

Greattt

[@moulikshrivastava8157]

Clearly an ad

[@somguynamedpaul]

Now they just need to get their US hotels to honor the loyalty program instead of having me call someone up every time the hotel doesn't honor it.

[@foxysealplayz3873]

should be called GYATT hotel Edit: Thank yall skibidis for 25 likes!

[@krasnamerah1926]

Their main rival is the Rizzi Carlton

[@foxysealplayz3873]

@@krasnamerah1926 LOL

[@therankingworld7627]

Was at their hotel in London for the weekend

[@Nglittleguy]

Stayed at Hyatt in montreal. Worst hotel experience on my trip. More expensive, but entrance had a stupid locking system that could kill during a fire, first room they showed me was not even cleaned from last visitor, and shower took over 30 minutes to start dispensing hot water. Was in completely cold water 30 minutes into my shower!

[@randomdude_2000]

I work in Melbourne Australia and the Grand Hyatt on Collins St is prob the fanciest hotel in the city.

[@TheBebemom]

No?? Ritz Carlton Melbourne is

[@azul1964]

Summary: 1. Target rich freq traveler = high profit margin 2. Light asset => huge diverse portfolio 3. Focus on M&A hotels/platforms with existing customers

[@AndreaDoesYoga]

Hyatt going for quality over quantity, I see 🧐.

[@LebronCCP]

i really like your yoga videos

[@phoenix5054]

They acquired "Alila", which I find too on the nose, since it means (often maltreated) servant in my home language. 😂

[@glennalexon1530]

Nobody thinks that "owning that real estate" adds "financial risk"; the real estate is the least-risky part of the hospitality business. Owning buildings lowers ROI, and selling it improves certain stock-market metrics, but there's no reason to think that it makes long-term business sense.

[@aytacboduroglu4448]

The footprint is now over 2000 as of 2 weeks ago, I wish they could include that so the video could age better…

[@MCorpReview]

Always felt hyatts hotels are not consistent. Prefer Hilton and their affiliates like Conrad.😂

[@pacho359]

I stayed at one in Shanghai. It was decent. Upscale without it being opulent. Would I stay there on my own dime? Nope.

[@aratosm]

Why are comments disabled? Why Does the U.S. Support and Fund Israel So Much? | WSJ

[@christianchung83]

Yes they wanna be the american express of the hotels. Smart for them to find their own niche.

[@glennalexon1530]

The proceeds of property sales are not "earnings". Read a book, WSJ.

[@samuraisan9223]

Their point availability isn’t great though, unless you are in the US

[@elbozo5723]

“Why Hyatt wants to be your most expensive hotel option” because they’ll get more money…

[@geraldjunior4235]

"Asset Light"

[@banderson1979]

The downfall of every great brand.

[@jacqdanieles]

In the age of ABNB, can you really blame them?

[@AKAAAK]

Cater to the elite instead of the mass

[@bvanderford]

Proves to be the path toward profitability and the all important investor return

[@ilovenoobs1]

Narrator sounds like BOB from Bob's burger.

[@rambotan5867]

Hilton is the best!++

[@danjohnston9037]

Don Draper ?

[@kingzaire2444]

I’m team Hyatt all day 🤌🏽

[@LK_EBM]

I really like Alila Ventana Big Sur!

[@moeomeohuyenmeo1883]

72 million for more than 1500 properties. how is that so cheap? can anyone please explain.

[@TheBebemom]

They are just listings…..

[@Nakkisampyla]

Sokos Hotels

[@Margelet]

Why hotel stuff gets lowest ever possible salary even the world wide brandy hotels?! Dramatic unfair!!

[@exelrode]

So basically they want to be apple of the hospitality business, only catering premium products

[@psychoticbob]

They spend more because i's NOT their money. And the money they spend is treated as a business expense that gets written off each year as a cost of doing business. Hyatt is just part of the 1%'s money shuffle that makes us pay for their lavish lifestyle. I will actively avoid Hyatt properties where I am able. Thanks, WSJ!

[@withoutpassid]

Thumbed down because the voice of the narrator was difficult to hear.

[@Teolulz]

never going to stay at Park Hyatt. furnitures from the 60s.

[@kkelly9424]

One of the most annoying examples of corporate speak that I have ever been subjected to. Last sentence of the piece- "Having a pathway to a bigger share of the customer wallet for our core base" . The language is unbearable.

[@jacqdanieles]

😂

[@SolaceEasy]

99% of people who watch this video will never be able to afford to stay in one of those rooms.

[@EssentiallyAI]

Wait until Hyatt has to address the impact of AGI on the hospitality industry.

[@nameundefinedname5307]

what do you mean?

[@EssentiallyAI]

@@nameundefinedname5307 What happens in a world with UBI or something equivalent for the masses who are unemployed, for the masses who have a lot of leisure time but not a lot of disposable income?

[@PJVist]

who cares about Hyatt! how about Ritz!

[@pytle]

Im to poor for this

[@Foxvalleyproduction]

To fund protest

[@floraedwards1266]

How to trade cryptocurrency

[@falconeagle3655]

Anyone who spends crazy amount in hotel without any real thing like view, location or prestige is not really bright. No matter how good the amenities are or the luxury is it's just four walls. It is not a place to spend money. There are spectacular places around the where there is everything nature, culture and food where money can be spent. I am not against good service. However countless Hotels in asia prove that it is easily possible with a modest amount.

[@chungyinman2625]

Not much new insights

[@Hobbes4ever]

snobby

[@banderson1979]

Everything wrong with Hotels comes down to one word. Franchising. F Hyatt, F Marriott, F Hilton.

[@dunkbanga6749]

Worst luxury hotel brand from food to properties being horrible maintained and theft from maids

[@maxjb9941]

Paid story for sure

[@ciararespect4296]

I own 45% of Hyatt

[@bstewnyc]

Why is every narration of a WSJ video SO LOW?

[@SoCalFreelance]

How many of the comments on here are from fake accounts by paid influencers? 🧐

[@user-mh2og8yl9x]

I am your sister from Yemen, and by Allah I only spoke out of hunger and distress. My mother, my brothers, and I lessons and tears. We are in a situation that only God knows about. God is sufficient for us, and He is the best disposer of affairs for those who brought us to this situation. By Allah Almighty, I did not write this appeal out of distress and distress. Poverty, O world, they have felt it So, I hope for you. By Allah Almighty, Lord of the Great Throne, he ate what I had in the house. By Allah, my brothers, he is my brothers by sitting in the house. Who has no food? By God, we are in a very difficult situation. We have 6 people entering the house, and my father has died, and there is no one who can depend on us and who lives in it.We live in a rented house because we cannot pay the rent we owe. '''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''''''''''''''''''''''''''''''''''''''' ''''''''''''' My brother, my first words are: I swear to God that I will not lie to you or deceive you. I am a Yemeni girl displaced from the war. My family and I live in a rented house in Al-Shahrab 15,000 Yemenis among us, and now we owe 45,000 for 3 months. The owner of the house is one of the people who does not have mercy, by God, my brother. He comes every day, insulting us, talking about us, and moving from the house to the street because we were unable to pay him the rent. The neighbors saw us crying and came back.They came back to talk to the neighbors and we were given the weekend. So we made him swear by God. He will take us out into the street. Have mercy on him and us. Our country is due to this war and we do not find food for our day, and my brothers and I live in a difficult life. Our father died, may God have mercy on him, and we have no one in this world who was with us in these harsh circumstances. My younger brothers went out into the street and saw...The neighbors eat and stand at their door in order to give them bread even if they break it. By God, to whom belongs the dominion of the heavens and the earth, they closed the door and expelled them and came back crying. They are dying of hunger. No one has mercy on them and a holiday is returned. I have made a living, and now if one of us helps us with a kilo of flour, I swear to God, I am dying of hunger. My brother, I am an alien to God. Then, I ask you to help me for the sake of God. I ask you, by God, to love goodness and to help me, even if you can, by messaging me on WhatsApp.On this number 00967717415667 and ask for the name of my card and send it and do not be late and may God reward you with all the best, my brothers Sagar, see how they are and help us and save us before they throw us out in the street, you will be lost or we will die of hunger. My family and I ask you, by God, if you are able to help us, do not be late and may God reward you well..`/--~«««~-♡~♡~♡~~•~•~♡~♡~♡~♡~♡~♡♡♡~~~: ~:~¡~¡~¡~;I.i.i.i.i.i. i.I.|-.............،

[@PatrickMitchell-fn3mm]

Greattt