Hyatt's $66M Leap into Boutique Travel with Mr & Mrs Smith Acquisition 🏨
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Hyatt, a name that’s common with luxurious and comfortable stays, has announced its acquisition of Mr & Mrs Smith, the UK's beloved boutique hotel booking site, for a cool $66 million. This $66 million purchase holds exciting advancements for the future of boutique travel and the hospitality industry as a whole.
Hyatt and Mr & Mrs Smith: A Great Match?
Mr & Mrs Smith, a trusted name in boutique hotel bookings, has been offering direct booking to 1,500 hand-picked, exclusive properties across the world for the past 20 years. With the support and global reach of Hyatt, Mr & Mrs Smith will now be positioned to take their brand to new heights.
Hyatt plans to incorporate direct booking access to Mr & Mrs Smith properties via its website and mobile app. This would not only enhance its loyalty program, World of Hyatt, by offering more options for earning and redeeming points, but also double the number of boutique and luxury properties within Hyatt’s direct booking channels.
Hyatt's Asset-Light Growth Strategy
Hyatt’s acquisition of Mr & Mrs Smith continues its successful asset-light growth strategy. This approach, focusing on acquiring brands and management platforms rather than physical assets, has proven fruitful for Hyatt. Following the acquisition of Two Roads Hospitality in 2018 and Apple Leisure Group in 2021, Hyatt continues to expand its brand footprint.
This year, Hyatt acquired Dream Hotel Group, a lifestyle hotel brand with properties across the Americas, Europe, and Asia. This purchase added over 1,700 rooms to Hyatt's lifestyle portfolio and increased its room count in New York City by more than 30%. Including the acquisition costs, the total price Hyatt paid for this acquisition was seen as a favorable deal, considering their projections for consistent future earnings.
The Future of Hyatt
Hyatt's recent acquisitions not only diversify their portfolio but also expands their brand presence in key markets, offering more inspiring experiences to their guests and World of Hyatt members. The integration of these new properties into the World of Hyatt loyalty program is anticipated to bring more stay occasions and destinations to its member base. World of Hyatt members, being some of the most valuable travelers in the industry, generate high-quality revenue for hotel owners.
Is this a promising outlook for the industry?
The combination of Hyatt's resources with Mr & Mrs Smith’s unique boutique offerings demonstrates the growing importance of personalized, intimate travel experiences. This move also emphasizes the significance of a seamless online booking experience and the shift towards digital platforms offering diverse options.
As Hyatt continues its asset-light growth journey, it raises the question: What other acquisitions and strategic partnerships can we expect to see in the future? How will this shift influence other industry giants? Will we see a surge in the diversification of portfolios in the hospitality industry?
As we watch this space, we invite you to join the conversation. What do you think about this acquisition - How will Hyatt's asset-light strategy influence the wider hospitality industry?
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