Hyatt Hotels is expanding its reach into the so-called “upper-midscale” segment with a new brand, Hyatt Select, designed to attract cost-conscious travelers while offering hotel owners a conversion-friendly option with lower operational costs.
The Chicago-based hospitality company launched Hyatt Select on Tuesday. The brand targets transient (not extended stay or convention) travelers in smaller towns and cities where the hotel giant has limited or no presence. Hyatt Select will feature properties with 70 to 200 rooms and a streamlined staffing model designed to reduce labor costs.
The move comes as Hyatt also celebrates opening its first Hyatt Studios property in Mobile, Alabama, an extended-stay concept announced in 2023.
The twin initiatives mark Hyatt’s most aggressive push yet into the upper-midscale segment, a highly competitive space dominated by brands like Hilton Garden Inn and Courtyard by Marriott.
Push Into Mass Market Hotels
While Hyatt remains best known for its two-dozen full-service and premium hotels and resorts, the company is betting that the efficient operational model of its half-dozen “select service” brands (which lack full-service amenities) will appeal to hotel owners facing rising labor costs and economic uncertainty.
Hyatt’s pipeline for select-service hotels has risen 25% in the Americas over the past three years and represents over half of Hyatt’s total hotel development pipeline in the region.
Hyatt’s Two Goals
Hyatt’s newest brands have two goals.
One is to offer owners of Hyatt Place hotels an “upscale” brand, the opportunity to relatively inexpensively convert their properties to “midscale” brands that don’t require as many amenities or operational perks.
Otherwise, Hyatt Place owners who don’t want to pay to renovate properties fully might seek to rebrand with midscale brands from other hotel groups.
The other major goal is to expand Hyatt’s geographical footprint. There are many places where Hyatt doesn’t have a presence, even though its loyalty program members visit these lesser-visited destinations.
A wider footprint is one reason why the similar Hyatt Studios concept has gained significant traction since its 2023 launch. More than 50 deals have been executed, including 22 in markets where Hyatt had no presence. The first property, developed by 3H Group, opened in Mobile, Alabama, last week.
