Why Hyatt Is Selling $2B in Assets | WSJ

Hyatt Hotels Corporation plans on selling off up to $2 billion worth of its real estate assets — mimicking a business strategy implemented by its competitors Marriott and Hilton years ago.

WSJ sits down with the hospitality company’s CEO Mark Hoplamazian for an extended interview to discuss why Hyatt jumped onto the asset-light strategy, and what this means for the company's future.

Chapters:
0:00 Focus on luxury
0:25 Hyatt’s shifting business model
4:25 Risks in the transition
6:03 Operating costs
9:44 Airbnb vs. hotels

#Travel #Hotels #WSJ

[giff]

I like it when CEOs and management are actually smart and creative instead of "let's cut our workforce and spending until Wall St likes us again"!

[KamiInValhalla]

I have stayed with Hyatt quite a few times. Did a lot if business travel and always arrive around 11 PM to midnight. Never had a problem with them.

[michaelgrayson]

If you have Hyatt loyalty status, Hyatt shifting more heavily towards franchising should worry you. Look to Hilton and Marriott to see how hard their franchisees will work to not honor elite benefits and how indifferent corporate will be. Hyatt being the direct owner of their properties was a differentiator. Storm clouds are gathering.

[chi-jenyang]

Smart move. Divest when the real estate bubble is just about to burst.

[Jailey]

Love the direction that Hyatt is going.

One of their best properties, has to be Alila Ventana Big Sur, which has a stand out experience:
- gifts of jade and a sage smudge stick left on your bedside
- on-site farm for guests to harvest fresh produce (fruits, veggies)
- beekeeping experiences with honey tasting
- hiking through the redwoods

Hyatt truly goes above and beyond to curate one of the most uniquely memorable hotel stays!

[eyelovecolorado]

They won’t be the ones without chair when the music stops! 😂

[TheRadioAteMyTV]

Are these guys brothers? It's like watching the same person interview themselves with a hair colour change.

[undyinsoul]

hyatt is certainly deleveraging by selling hotels to the buyers (private equities, REIT, pension funds, and family offices) and will profit continuously with franchise fees, royalties, etc. with that money, buying leisure companies specializing in vacation resorts for upper-income consumers.

[adamoliver]

"My executive coach told me to talk more with my hands"

[mishmohd]

I don't think it's accurate to say you have a diverse offering when in the same breath you said you're target more affluent costumers. I think what Hyatt is betting on is that most areas considered hot today will no longer be in demand, and that the new locations are the up and coming hotspots.

[AnotherMartinez]

As Platinum Dreams member, this integration to Hyatt has been awful - Dreams trying to sell me perpetual “upgrades” of my membership, warnings against “losing my benefits” if I don’t join Hyatt -and so on… I think Hyatt is going to screw me up

[stefanbucur]

They can feel the crash in the real estate market coming and they're trying to sell at the top

[_iErik]

11 minutes of my life that I’ll never get back.

[mimusic]

The tale doesn’t wag the dog regardless of who owns, operates or collects a franchise % percentage for flagship use it all comes down to the economy. Rising tide raises all boats.

[MelissaHobbs-qmwi]

The cost of living seems to be increasing every year, making it harder to keep up.

[LucyGreen-jgpi]

🤩Thank goodness you brought this up! I'm favoured, $60K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America, ,

[josejavieriglesias]

Love this videos!! Do a FMCG one 🙏🏻Unilever, Rekkit, PG

[shanghaidiscovery]

This is not really new for them. I worked for Hyatt in Asia over 20 years ago and almost all properties then were already owned by entities other than Hyatt

[ArikMkd]

So actually all the big hotel brands like Hyatt, Marriot etc. are going to control the market without competition and raise prices to the roof

[Jacku]

Not a bad video though as stated this is the common playbook. It's a good story from a great brand though not necessarily different from the competition. Hyatt is later (a.k.a. more deliberate) on the franchise model rebalancing which has pros and cons.