Hyatt Hotels is one of the world's top operators of luxury
hotels and resorts. The company has about 640 managed, franchised,
and owned properties in more than 50 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 2015 about 80% of the company's revenues came
from properties located in the US, while the remaining 20% of
revenues came from international operations.
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 $4.3 billion in revenue for fiscal 2015 was a slight
decrease compared to the the prior fiscal year, when the company
reported $4.4 billion in revenue. However, even with billions in
revenue, Hyatt's net income was only $124 million in fiscal 2015.
That was a decrease of almost 65% compared to fiscal 2014, when
Hyatt cleared $344 million in net income.
The company's cash flow from operations increased by $65 million
during fiscal 2015 compared to the previous fiscal period and Hyatt
ended the year with $538 million in cash on hand.
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.