Insight from IHIF: Felicity Black-Roberts, Hyatt
During the International Hotel Investment Forum (IHIF) in May 2023, Sleeper’s Deputy Editor sat down with leaders in hospitality to discuss projects, performance and pipeline.
Having developed the Hyatt portfolio since 2016, Vice President of Acquisitions & Development Felicity Black-Roberts reveals what’s next for the group in Europe and beyond.
EMEA represented 45% of Hyatt’s global openings in 2022. What can we expect in 2023 and beyond?
Hyatt is getting more mature as a company in Europe and the Middle East, as previously we had fewer hotels in the region compared to our competitors. We’ve grown organically over the past seven years, and that has been a deliberate approach to ensure that our distribution is in the right places and that we’re creating a network that our global travellers want to visit. Back in 2016 for example, we had no hotels in mainland Spain. That has since changed, with a focus on expanding our brands at a steady pace to solve the distribution gaps. Last year we had a particular strong year and that was down to a combination of elements, including the Lindner Hotels & Resorts deal, which gave us a growth boost that we hadn’t previously seen.
In terms of our growth in 2023, we’re now seeing more and more clients wanting to do business with us because our distribution system is much better. We have the structures in place, and that’s not just from the perspective of owners, operators and franchises, but also from the guests. We bought Apple Leisure Group in 2020 too, so that has given us a resort presence in the Mediterranean, which we couldn’t have dreamt of in the past. The other thing we have done is introduce strong leisure brands like Thompson, which has resonated with developers in Europe. The first opened in Madrid earlier this year and we have one under construction in Vienna.
When identifying new locations, how much consideration is given to conversions or newbuilds?
Newbuilds are tricky right now, given the pressure on construction and rising costs. The pipeline that we do have is more likely to be driven by the wider regeneration of an area, perhaps something that has been government led. We believe that newbuilds could be quite elusive for some time, and as a result are seeing a lot of conversions. And that’s conversions of offices and department stores – particularly in the UK – as well as existing hotels, where there is a repositioning opportunity.
Hyatt recently acquired Dream Hotel Group, so are we likely to see a property in Europe soon?
The way that Dream Hotel Group leverages the F&B within its properties is extremely strong, so we’re excited about the acquisition because that also plays into one of Hyatt’s strengths. With regards to future development, what we tend to do once we have completed an acquisition is sit back, breathe and then work out where the brand will sit within the wider group. That’s where we are currently at with Dream, but I’m looking forward to seeing what the coming years have in store.
What opportunities are there for luxury and lifestyle brands in Europe and North Africa?
From Hyatt’s perspective we have a strong collection of lifestyle brands, including JDV by Hyatt, which is allowing owners to inject their own character into hotels. In the mid-market, our boutique properties are well-placed and location wise, we can see them slotting into more destinations going forward. The important thing for us to do in the future is build our relationships with owners and franchisees, to ensure that they understand what our brands mean and how they can add value. And then when they enter into a lease, we already have that relationship. If we’ve done one franchise with somebody, we’d like to do five, six or seven. It’s about scaling up with partners and we’re starting to see that come good for us now, after educating the development community on who we are, what we are and most importantly, what we can deliver. We’ve also launched our franchise organisation in Europe – it’s a model we developed in the US and is a support mechanism for our franchisees across Europe.
Tell us about some of the forthcoming properties that Hyatt is launching in 2023…
We’re welcoming Hyatt Regency Kotor Bay in Montenegro this summer, which features a contemporary eco-design that harmonises with the surrounding scenery, as well as Hyatt Regency Pravets Resort in Bulgaria, which overlooks Pravets Lake and the Balkan Mountains. In Europe, we also have plans to open Kennedy 89 in Frankfurt later this year – to sit within The Unbound Collection – as well as the first Thompson hotel in Italy with Thompson Rome, a 70-key luxury lifestyle property that reflects our plans for growth in southern Europe. Further afield, Secrets Tulum Resort & Beach Club will arrive in the AldeaZama Complex this summer, and The NUE Hollywood – meaning New Urban Experience and also part of The Unbound Collection – will channel the avant-garde style of the area.
