Hyatt Hotels Corporation has announced it has executed franchise agreements for the first locations for its new Hyatt Studios brand.
Following its announcement of signed letters of interest for more than 100 Hyatt Studios hotels at the brand’s launch in Apr-2023, Hyatt now confirms the latest select service brand in the Hyatt portfolio will initially debut in Mobile, Alabama and Marysville, California.
The two destinations support Hyatt’s strategy of entering untapped markets where its brand presence is yet to be established.
Hyatt Studios, its Hyatt’s first upper-midscale extended-stay brand in the Americas and is expected to be a key accelerator for the hospitality provider.
The Hyatt Studios brand will join Hyatt’s Timeless collection and is positioned to transform the extended-stay experience. Developers can expect a product that delivers three main components for success, according to Hyatt: “efficient and scalable prototypes, a lean operating model, and flexible brand and design elements to adapt to local market needs across primary, secondary and tertiary markets”.
Accommodating extended-stay and transient demand, each Hyatt Studios hotel will be sized to fit approximately 122 rooms with flexibility to scale up or down.
3H Group, founded by Hiren Desai, an expert in the select service space, has entered into a franchise agreement with Hyatt to build the inaugural Hyatt Studios hotel in Tillman’s Corner, just outside of Mobile, Alabama.
The site will mark Hyatt’s first branded hotel in the area and is strategically located near Mobile Bay’s Gulf Coast, providing extended-stay guests with easy access to this rapidly expanding port city. In addition to attracting tourism, the city boasts a diverse range of industries in manufacturing, aerospace, and commercial retail, further enhancing its midscale appeal. This property is set to open in late 2024.
Additionally, Presidio Hotel Development has entered into a franchise agreement with Hyatt for a 113-room Hyatt Studios hotel in downtown Marysville, California, located in Yuba County and part of the North Sacramento area.
Hyatt describes Marysville as an “ideal location” to develop a Hyatt Studios hotel due to the city’s “rapid growth” in recent years, which has led to “increased demand in the midscale segment”.
Expected to open in 2025, the property will feature a custom buildout, including dedicated meeting spaces, to effectively serve the needs of both business travellers and those attending local events in the area.
Hyatt’s entry into these new markets with Hyatt Studios hotels “exemplifies our commitment” to developers, guests and World of Hyatt members, says Dan Hansen, global head of Hyatt Studios. “We’ve learned that when Hyatt guests stay with a competing brand, they appear to do so for one of two reasons: the absence of a Hyatt hotel within five miles or the choice to stay at a lower chain scale. By enabling guests to choose a Hyatt hotel in new markets, we grow brand loyalty without intra-brand competition and present more white-space options to developers,” he explains.
