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Gostelow Report: Hoplamazian on loyalty, SLH link-up

“We announced a partnership with Small Luxury Hotels of the World on August 1, and after five weeks I am more than ever convinced it will be win-win,” says Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation, based in Chicago.

“This strategic loyalty alliance marries together the uniqueness of SLH’s high-quality portfolio of individually minded hotels with the power of Hyatt’s global reach and commitment to caring for people. We listened to our World of Hyatt members and strengthened our distribution in important places. Members are excited to stay at SLH properties around the world, and in fact, many have written me to share that this will increase their business and loyalty to us,” he explained.

Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation, in the company's open-plan Chicago headquarters
Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation, in the company’s open-plan Chicago headquarters

Hyatt is doing things that are different from today’s norm. There had been substantiated rumors that Hyatt was interested in NH Hotels but, as Chinese giant and part-owner HNA advanced, Hyatt retreated.  

More or less simultaneously it announced its link-up with SLH – which calls itself a brand but others sometimes name a consortium – has taken Hyatt to a hitherto-untried consolidation model. The Hyatt-SLH deal is ultimately about offering both companies’ loyal followers even more opportunities. Hyatt guests already had access to over 750 properties in 55 countries, and SLH followers had over 500 properties in 80 countries. Add those figures together and the opportunities immediately multiply.

Another important factor is that Hyatt would never, for example, have put its name on a chateau near Cognac (Domaine des Etangs, Massignac), while SLH may well not have been able to offer a really central hotel in Buenos Aires, Argentina. Both companies believe in rewards rather than loyalty points.  Hyatt, indeed, recently launched Find, where points, or cash, can be used to learn movie-set stunts or go cycling with celebrity chef Chris Cosentino. Small Luxury card-holders will be exposed to World of Hyatt and the benefits and experiences enjoyed by the over 10 million World of Hyatt members.

A strong incentive to both parties to sign this partnership was that no significant financial outlay was required from either side. “Yes, we are, after all running a business,” admitted Hoplamazian, whose most recent figures, for April-June 2018, saw RevPAR up 4% year over year, with U.S. properties up 3.4%. This has resulted in full-year RevPAR guidance revised upwards from earlier expectations of 2% to 3.5%, up to 3% to 4%.

Another differentiation: Grand Hyatt Athens opened August 8 and immediately became so popular that all 308 room were booked last Tuesday, September 4. The franchise holders, siblings Tina and Yannis Daskalantonaki, made the eighth floor rooftop the lifestyle hub of the Greek capital – facilities include views of the Acropolis, floodlit night-long, and a raised pool with clear glass sides. Locals and guests love it, and spend.

“As a realistic optimist, I look at the source of good figures. With very few exceptions we have extremely attractive and well-maintained properties. We have a highly motivated and loyal global workforce of around 100,000-plus, and if we look after them they will look after clients who will bring in the money,” Hoplamazian explained.

A bellman at Park Hyatt Chicago recently celebrated 40 years with that hotel, which included a two-year secondment to look after guests diverted to Hyatt Regency Chicago during Park Hyatt Chicago’s re-build (it was difficult for some to adapt, albeit temporarily, from their usual 200-room Chicago home to a monster with over 2,000 rooms). At the 40th anniversary party, Hoplamazian joined all his top executives in the celebrations.

His current employee motivation initiatives are led by his belief in mindfulness. His aim is to introduce mindfulness to every single Hyatt employee. “Starting in the very near future, programs will help everyone, from my senior executives down to the newest recruit, attain as near to the best possible and how to live in a way that enables them to share with others,” he explained. 

“You can serve someone and provide statutory and satisfactory service but you cannot genuinely care unless you practice empathy, and for this you need to have your mind free from distraction. In 2013 we started looking at employee purpose, and now we have moved on to well-being.”

Hoplamazian is a strong believer in self-fulfillment, and he himself meditates. When at his gorgeous new corporate headquarters overlooking Chicago River, takes a few minutes from time to time to switch off, mentally, and watch the water, and the activity down there.

“I do believe that beautiful views, especially of water, add to the quality of life, all the more necessary in a world that is increasingly stressful. We all need to adapt to a new way of looking at life,” he said.

Hyatt introduced a new way of life in January 2017 when it paid KSL Capital Partners US$215 million for Miraval Group, and it is spending US$160 million to expand the brand. By partnering with, without investing in, Small Luxury Hotels, Hyatt adds a whole new world of life enhancement.

“Personally I am really excited about going to SLH’s Hotel Rangá in the wilds of Iceland, to watch the aurora borealis, and study the night sky through professional telescopes. Such transformational experiences open up so many more opportunities for our World of Hyatt members, for the reputation of our own brand,” said Hoplamazian.

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