The Hyatt group now has over 200 hotels in the Europe-Africa-Middle East (EMEA) region. This represents a portfolio that has more than doubled in the space of five years. Is the development of your portfolio in Europe a priority for your group?
Javier Aguila – We have a very clear desire to expand our presence there. As part of this, our strategy will no longer be that of a global company that sets up shop here and there as opportunities arise, but one that is "on the move". really focused on this market. We have a phrase for this: "From Europe to Europe and from Europe to the world". This means that, on the one hand, we are accelerating the development of our activities on this continent and, on the other, we want to increase the share of European travellers as our source market. That's why we plan to strengthen our position in the main source markets of France, Spain, Germany, Italy and the Nordic countries.
What are your objectives in France?
Javier Aguila - In France, we have 10 hotels - iconic establishments such as the Park Hyatt Paris-Vendôme, the Hôtel Martinez in Cannes and theHotel du Palais in Biarritz. We will have others soon in Rouen and Reims. But we have need for moreIn France, for example, we quickly expanded our portfolio through a partnership with Lindner Hotels, whose establishments are franchised under the JdV by Hyatt brand. In Germany, for example, we have rapidly expanded our portfolio through a partnership with Lindner Hotels, whose establishments are franchised under the JdV by Hyatt brand. And we are seeing very good progress with German customers.
Do you plan to duplicate this type of partnership outside Germany?
Javier Aguila - Without being able to talk about it, we are indeed working on a few deals at the moment (Editor's note - update: on 28 June, the Hyatt group announced the acquisition from Lindner of its six Me and All hotels, a new lifestyle brand for Hyatt that the group intends to develop across Europe and beyond). These agreements may take the form of franchise partnerships similar to the one we have concluded with Lindner, or involve the management of hotels on behalf of their owners. Others could go as far as a buyout. Our finances are solid, and we can easily envisage a further acquisition.acquiring medium-sized players in EuropeHyatt is a global company, and indeed a larger global group. One of the changes I've made since becoming head of Hyatt's EMEA region has been the creation of a transaction team focused on Europe, working in coordination with our head office team in Chicago, as well as a new organisation for the zone, subdivided into three regional departments, one for Northern Europe, one for Southern Europe and one for the Middle East and Africa. This is a continent where Hyatt still has little presence, but where we will be opening hotels in Nairobi, Lusaka and Harare, as well as in South Africa.
In the context of these potential acquisitions, are there some countries where you see investment opportunities more than others?
Javier Aguila - Honestly, no. They are everywhere. Unlike in the United States, where there has long been a separation between hotel ownership and management, in Europe the two are often carried out by family groups of around ten hotelsparticularly in the leisure segment. These groups are sometimes faced with complicated successions and look favourably on the arrival of an international player to take care of their hotels, bringing them good brands and improving their marketing. These family groups may also consider selling their assets. So these are all avenues that we are exploring to fuel our growth.
However, your development also depends on the organic growth of your brands.
Javier Aguila - It is, of course, just as important, as shown by the latest developments, including the opening of the Grand Hyatt Barcelona and others to come this year, such as the Park Hyatt River Thames in London and the Andaz Doha. Unlike Greece, where there are many new construction projects, greenfield development opportunities are more limited in Western Europe. But there are other possibilities, such as conversion into office hotels and the like. This is the case of Thompson Madrid which used to be a cinema and a mixed-use building, the Park Hyatt Vienna, which used to be a bank, or the future Thompson in Rome, which used to be a bank. the former headquarters of the Italian Communist Party.
As part of this organic growth, your Hyatt Place brand is due to open soon in Rouen. Does this project show that your group has a brand dedicated to secondary markets, like its competitors?
Javier Aguila - This 'select service' brand, with its slightly higher mid-range positioning than the competition, works very well in secondary markets. Until its launch, we didn't have any brands adapted to this type of destination, such as Hyatt Place, JdV, Hyatt House or Hyatt Centric. This opens up excellent growth opportunitiesparticularly franchises. We have 70 projects in our EMEA pipeline, many of them in secondary destinations. And we are looking at hundreds of other such opportunities. For example, in recent years we have opened a Hyatt House/Hyatt Regency complex in Stratford, on the outskirts of London, and another similar combo in Manchester. Similarly, a Hyatt Place is due to open in Leeds and a Hyatt Centric is due to open in London. Edinburghnear the conference centre. In France, we will soon have a Hyatt Place at RouenThere is also a Hyatt Centric in Reims, due to open in a year and a half.
At the same time, your lifestyle brands Andaz and Thompson are expanding rapidly. What are the differences between the two?
Javier Aguila - They are both lifestyle brands positioned at the very top end of the market, even in the luxury segment, but in a very different way. a non-traditional approach to luxuryAll with an emphasis on design, speakeasy-style rooftops and bars, and a fantastic F&B offering. Places that are popular with the local clientele. When I was working in New York for McKinsey, I remember that the Thompson, which had just opened, was the cool place to go for a drink. You had to be lucky to find a seat there, as it was so full of artists and other celebrities. If I had to compare them, I'd say that the Thompson hotels are more urban, more vibrant, with a stronger emphasis on F&B, while the Andaz will be more design-led, more colourful, calmer too.
Are these lifestyle hotels dedicated to business travellers?
Javier Aguila - For business travellers, yes, but especially from certain sectors such as entrepreneurs, fashion, design, technology. They like this type of hotel for the experience, working in the lobby, mixing business and pleasure by extending their stay at the weekend or arriving early for a meeting on Monday. In particular, the Thompson Madrid and the Andaz Amsterdam have a large business clientele, including incentive groups.
Is this bleisure trend also evident in your business brands such as Hyatt Regency and Grand Hyatt?
Javier Aguila - These brands have always had a strong corporate focus, but we add leisure components when the venue allows. The Grand Hyatt in Dubai has the largest conference centre in the Middle East, but guests will also find eight restaurants and a water park. The Grand Hyatt Barcelona offers 30 meeting rooms, but a rooftop bar and restaurant serving Peruvian fusion cuisineand soon a signature restaurant by Michelin-starred chef Dani Garcia. The clientele of the Hyatt Regency Düsseldorf is very corporate, but it is also home to one of the city's best restaurants. Everything blends together. Conversely, the resorts we have in Spain, Montenegro, Bulgaria and Tagazhout in Morocco also have a MICE offer.
designed by architect Marcel Wanders.
In EMEA, Hyatt has seen a growth in MICE demand of 18% in 2023 compared to 2022, and a further increase of 8% in the first quarter of 2024.
Javier Aguila - We couldn't have predicted such growth. At the beginning of covid, we heard that business travel was dead. Nothing is further from the truth today. Of course, we are seeing a reduction in the number of one-day meetings. But the need to meet and stimulate teams is as strong as ever. This explains the significant growth in demand and the increase in the number of business trips. which is why MICE is so important to our group. This is one of our major strengths, particularly with the Hyatt Regency and Grand Hyatt brands.
To conclude and sum up, what is it that makes Hyatt grow faster than most of its major competitors?
Javier Aguila - Our growth rate is indeed higher. But we don't want to grow at any price. We want to grow in a sensible, sustainable way, with a determination to remain faithful to the quality of service we offer, with brands that are always positioned at the top of their segment. Some of our competitors, whose strategy I respect, have more flexible brands, but they would probably be too flexible for us. Two things will continue to push us forward, firstly our high distribution capacity with, if you look at the number of hotels each has, 30% more loyal members on average than our competitors. Secondly, in many markets, we have just one hotel compared with four on our competitors' side. Hence the possibility of adding others, particularly with our mid-range brands. In the same vein, until recently we didn't have a mid-range long-stay brand in the US until we launched Hyatt Studios last year. We are currently working on adapting it for Europe and the Middle East. So there's still more to come!
