Hyatt Shifts Strategy in Plan to Sell $1.5 Billion in Hotel Real Estate Over Next 3 Years
Photo Credit: The Regency Club at the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Arizona. Hyatt sold the resort this year as part of its newly formalized asset-light business strategy. Hyatt Hotels
Skift Take
From "asset recycler" to "asset light," Hyatt is beginning to embrace a favorite industry strategy for making more money.
Hyatt Hotels has traditionally been known for its "asset-recycling" strategy where it sells properties to reinvest that money into buying other hotels in markets where the real estate isn't as expensive.
Now, however, there is a clear indication that the Chicago-based company is moving away from that approach in pursuit of a strategy that the majority of publicly traded hotel companies prefer: asset light.
Over the next three years, Hyatt intends to sell $1.5 billion worth of real estate in what CEO Mark Hoplamazian described as an "evolution of our capital strategy" as it "shifts to a more fee-driven business model." The company intends to keep any sold real estate in the Hyatt family with long-term management or franchise agreements.
In other words, Hyatt is becoming a lot more like its peers, such as Marriott, Hilton, and InterContinental Hotels Group, in choosing to not spend as much money on real estate, and applying that money toward investments in technology and loyalt
