Hyatt Hotels’ select-service brands have a fast-moving pipeline: With seven open properties in China, the company aims to have 40 operating hotels by 2020. That aggressive growth is “commensurate with the category,” which Steven Dominguez, vice president of global brands, Hyatt Place and Hyatt House, said is about 5% of hotel properties in the country but is growing at double the pace of full-service options.
All those are managed deals, and several are with Chinese owners of full-service brands. The goal is placement in urban markets like Shanghai, Shenzhen and Beijing, and second- and third-tier cities that are more suburban, according to Jason Ballard, vice president of operations for the brand in Asia Pacific.
“It’s a lot more relationship-based but it’s moving toward more of a good investment,” Ballard said. “Once we start seeing hotels come up for sale in China, we’ll see this market really start to take off like it did in the U.S. in the ’80s where it becomes a value proposition.” The company is pursuing franchises, as are its competitors.
“We’re introducing the Hyatt brand to a whole new set of consumers in brand new markets where Hyatt doesn’t exist,” Ballard said. “We see these as aspiring long-term international guests, eventually, and Grand Hyatt and Park Hyatt guests as they grow up with these brands.”
In a place where a common greeting is, “Have you eaten?”, “food is obviously a centerpiece for the culture here,” Ballard said. The complimentary breakfast includes dim sum, congee and noodle dishes, a more complicated set-up than the brands’ U.S. counterparts. Also China-specific is a more open kitchen and staff in chef’s whites. Tables are a more traditional circle shape, and semi-private seating is available for mealtime business meetings.
The Chinese customer’s increasing familiarity with the brands will work to Hyatt’s advantage as outbound travel continues to increase, Dominguez said. “China’s one of our key strategies as a company that we’re looking to really leverage.”
Ballard says new hotels in China will open with a WeChat pay platform, and the goal is to allow that capability in U.S. hotels as well. “It’s all part of our wanting to master the Chinese customer,” he said.