Hyatt CEO on Owner Value and Replacing Four Core Hotel Systems
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How hotel brands share costs with owners directly affects owners' return expectations and the pace of brand expansion; operating-cost reductions from system consolidation can also shift the terms of hotel management contract negotiations.
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- Skift FeedHyatt CEO on Owner Value and Replacing Four Core Hotel Systems
Hyatt Chairman, President and CEO Mark Hoplamazian said at Skift Global Forum that Hyatt has been the largest owner of its own hotels for 67 of its 70 years, shaping a different set of decisions. He said Hyatt replaced four core systems at once — central reservations, property management, revenue management and point-of-sale — delivering 40% savings on the property management system, with Hyatt absorbing the entire cost and passing none to owners. He also said Hyatt's leisure mix rose from about 35% in 2017 to closer to 55% by 2025, driven in part by the $2.7 billion acquisition of Apple Leisure Group during COVID.