Hyatt has the most rewarding elite program of any of the major hotel chains, and their properties skew upscale (and relatively upscale even in the limited-service space). The problem is that their footprint simply remains small relative to Marriott, Hilton, IHG and Accor.
On the one hand that means they need to try harder in loyalty, because it takes effort for a guest to stick with Hyatt properties. On the other hand it means that they don’t have hotels in all locations and all price points the way competitors are closer to achieving.
They’ve tried to grow through strategic partnerships with MGM and SLH hotels, and through acquisitions such as Two Roads Hospitality which has given them Alila, Destination Hotels, Joie de Vivre and Thompson Hotels (as well as the nascent tommie brand).
Hyatt has actually tried and failed at other acquisitions. They were in the running for Starwood, probably even offering more money than Marriott, but their complicated stock structure (the Pritzker family retains outsized control) got in the way. Hyatt tried at the last minute to acquire NH Hotels but that door was already shut. They were also a bidder for Kimpton, but IHG beat them out by $100 million. (Hyatt was right not to overpay the way IHG did.)
Now Hyatt is reportedly taking another bite at at least a piece of the Kimpton apple, possibly acquiring Kimpton properties from Xenia Hotels.
Hyatt Hotels Corp. has emerged as a bidder for a portfolio of Kimpton hotels owned by Xenia Hotels & Resorts Inc., according to people with knowledge of the matter.
Xenia has received multiple offers for the portfolio, which could fetch about $500 million, said one of the people who requested anonymity because the matter is private.
…Management contracts for the portfolio, which includes Kimpton Hotel Monaco properties in Chicago, Denver and Salt Lake City, can be terminated in the event of a sale, Bloomberg reported last month.
Rooftop Pool, Credit: Kimpton Canary Hotel, Santa Barbara
Rather than acquiring brands and management contracts this would be actually buying a handful of Kimpton hotels themselves in Portland, Alexandria, Philadelphia, Denver, Chicago, Salt Lake, and Santa Barbara. If the transaction is successful it’s not clear how long a transition period would be before the hotels are re-branded.