Hyatt Hotels Corp. on Tuesday announced a deal for an undisclosed price that furthers its commitment to wellness initiatives and adjacent spaces by acquiring the Exhale brand, which operates 25 storefronts devoted to addressing mind and body through spa and fitness.
Hyatt plans to help Exhale grow its portfolio globally, especially in locations where it has the most impact on Hyatt’s core customer base, and to integrate Exhale programming into hotels on a case by case basis.
Hyatt intends to offer Exhale locations and programming as part of the World of Hyatt platform, bringing new experiences for loyalty program members as it has recently done with Miraval (acquired in January for US$375 million). It also plans to integrate services through its curated home rental marketplace Oasis. Hyatt currently gives Oasis customers access to nearby fitness options and may do the same at Exhale locations.
“Hyatt made an explosive decision to enter wellness and pursue experiences that will impact our core customer base as we believe strongly that this is an experience they are looking for,” Steve Haggerty, Hyatt’s global head of capital strategy, franchising and select service, told HOTELS. “This acquisition is not our answer to wellness, but it is a part of Hyatt’s pursuit of experiences to fulfill our strategy to become a wellness-oriented company… Wellness is an area in which we can better serve our customer in a space that is growing. Hyatt has brand permission to play in this space and a need to service customer when they travel.”
Haggerty added that the bigger story surrounding the Exhale acquisition is creating greater value for their World of Hyatt customers. “We are creating loyalty by developing experiences guests want and making it sticky with services in high growth areas where we can execute and be consistent with overall brand values,” he added. “We continue to look through a thoughtful lens to serve our customer base and integrate services in the right way for access and to improve our value proposition. We can win in this space with this type of differentiation.”
Elaborating on the value proposition, Exhale Founder and CEO Annbeth Eschbach said the concept is an urban experience guests need and want to take on the road. “When in hotels, guests can continue routines established at home. It’s a huge trend in hospitality and an unmet need. There is a great opportunity to super-serve high end travelers.”
Inside hotels, Eschbach says the Exhale experience (cardio, yoga, well-being, for example) will be dictated by the market and vary in terms of size and experiences. Either branded or unbranded within hotels, Exhale options can range from a 2,000- to a 10,000-sq. ft. commitment, according to Eschbach. “We share vision to get it right with owners to enhance profitability,” she added.
Haggerty made sure to point out that the Exhale acquisition was not made in concert with Miraval, adding that the brands are differentiated. Miraval serves customers with a specific purpose of travel with its destination resorts, while Exhale serves everyday wellness needs. For those reasons, perhaps, he sees more opportunities to grow the Exhale brand.