Hyatt Hotels is one of the world's top operators of luxury
hotels and resorts. The company has about 700 managed, franchised,
and owned properties in more than 55 countries. Its core Hyatt
Regency brand offers hospitality services targeted primarily to
business travelers and upscale vacationers. The firm's hotel chains
include the upscale, full service Hyatt, Grand Hyatt, and Andaz
brands, as well as Park Hyatt (luxury) and Hyatt Place (select
service). Hyatt also operates resorts under the names Hyatt Zilara
and Hyatt Ziva and the company's Hyatt Residence Club sells
Hyatt has hotels all over the world. Outside the US, the company
has existing properties in Europe (France, Germany, Italy,
Switzerland, and the UK); the Middle East (Azerbaijan, Kyrgyz
Republic, Saudi Arabia); Latin America (Argentina and Brazil); and
Asia (India, Indonesia, Japan, and South Korea). During fiscal 2016
about 80% of the company's revenues came from properties located in
the US, while the remaining 20% of revenues came from international
Sales and Marketing
Hyatt uses a sales team located in global and regional sales
offices around the world. Hyatt Gold Passport and Hyatt.com are the
key components of its marketing strategy. Hyatt Gold Passport is a
guest recognition and loyalty program. Hyatt.com is the chain's
primary online source of information and reservation booking.
Hyatt's $4.4 billion in revenue for fiscal 2016 was a slight
increase compared to the the prior fiscal year, when the company
reported $4.3 billion in revenue. However, even with billions in
revenue, Hyatt's net income was only $204 million in fiscal 2016.
That was an increase compared to fiscal 2015, when Hyatt only
cleared $124 million in net income. The relatively modest net
income on billions in revenue shows how expensive it is to operate
hotels. The company's cash flow from operations remained strong in
In the US Hyatt focuses its expansion efforts on
under-penetrated markets, mostly through management and franchising
agreements. A key part of its strategy is to increase its franchise
and managed properties, a business model that is associated with
lower costs than outright ownership.
The company has doubled its properties in New York City. While
more than 80% of the company's revenues have traditionally come
from the US, approximately 70% of its new hotels will be located
outside North America.
As part of its international strategy, Hyatt is focusing on
markets such as Brazil, China, India, Russia, Latin America, and
the Middle East for growth. The company has some 50 hotels open or
under development in China in key markets such as Beijing, Hong
Kong, Macau, Shanghai, and Shenzhen. Hyatt has also expanded in
India, bringing the total count of hotels under development there
to more than 50.
Hyatt has also been selling off some of its less profitable and
less cost-effective hotels.
Mergers and Acquisitions
In early 2017 Hyatt acquired Miraval Group for $215 million. The
acquisition gave Hyatt more wellness resorts and spas, allowing the
company to better serve high-end travelers.