Hyatt has not completed its European expansion.
Chicago-based hotel group $2.7 billion to acquire Apple Leisure Group It may seem like a game for all-inclusive resorts, but the takeover has increased Hyatt’s European footprint by 60%. However, Hyatt’s appetite for Europe is not satisfied there: On Thursday, the company announced a strategic partnership with German hotel company Lindner Hotels AG.
While the Lindner deal is not an acquisition like ALG games last November, the new partnership means more than 30 hotels across seven European countries will join the brand portfolio. Hyatt and integrated into Hyatt’s World loyalty program. Most of the Lindner hotels are expected to convert to the JdV by Hyatt brand, a collection of independent hotels offering a more distinct taste, such as a standalone Hyatt Regency.
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“The addition of Lindner’s desirable hotel portfolio will fundamentally strengthen Hyatt’s brand footprint in Germany and expose our guests and ultimately our World of Hyatt members to a wide range of locations. New destinations across Europe include Kiel, Leipzig, Sylt, Bratislava and Interlaken,” Hyatt CEO Mark Hoplamazian said in a statement. “We are grateful for the trust the Lindner team is placing in us and are delighted to enhance our collective guest offering through the strategic capital investments that are included in the portfolio by Lindner. .”
A spokesperson for Hyatt declined to provide any financial details about the partnership or whether, given the rebranding, the partnership is just a stepping stone to an eventual acquisition. .
While not a takeover, the Hyatt-Lindner partnership does play a key role in the burgeoning hospitality industry mindset that major hotel companies are likely to grow. trading “bolt-on” or “tuck-in” Fill in the geographic or brand blanks. In the past, Marriott has secured one of these contracts in Europe with AC Hotels; The deal gives Marriott a geographical stepping stone before the American company expands its brand around the world.
Brand strategy
Lindner may not be a household name in the US, but Hyatt has described the deal as something that has helped it raise the bar in the lifestyle hotel segment. Lifestyle hotels often place more emphasis on food and drink and design. The JdV by Hyatt brand, which many Lindner hotels will establish, describes itself as “a collection of original hotels with a deep respect for the neighborhoods that make up each destination.”
The Lindner’s websitehowever, shows a category of hotels that appear to fall outside the lifestyle hotel segment. According to the company’s website, there is a mix of business and airport travel hotels as well as other leisure-oriented hotels that fall under the Lindner umbrella. The company operates two brands: Lindner Hotels & Resorts, and Me and All Hotels.
There is no public information on which specific hotels will be transitioned to joint venture branding under the agreement, but the new partners have touted the mutual benefits of working together. While Hyatt has a larger foothold in Europe, Lindner enjoys global support and better brand recognition.
“This type of partnership is truly unique in the German market,” said Lindner CEO Arno Schwalie in a statement. “As part of the JdV by Hyatt brand, Lindner remains a strong brand with its own identity and corporate independence, now supported by the strength of global brand awareness and ability to market and Hyatt’s first-class sales.”
Key point
Hyatt’s attention to Europe during the pandemic was initially a curious one, like most of its competitors. continue to focus on China. Many expect Europe to be the last geographic region to recover from the coronavirus pandemic due to its growing reliance on international travel.
Instead, the European strategy proved to be a smart one. China’s reopening plans to international travel remain uncertain, and tough lockdowns continue to emerge in some cities seeing a spike in new cases. Europe, on the other hand, seems to be booming on the hotel front despite geopolitical tensions over the invasion of Ukraine.
According to STR.
