Dive Brief:
- Real estate investor, developer and manager Caliber entered into an agreement with Hyatt Hotels to develop 15 Hyatt Studios properties in “key” U.S. markets, the Scottsdale, Arizona-based firm announced Tuesday.
- Caliber will develop the hotels in Arizona, Colorado, Nevada, Texas and Louisiana. Construction will begin on the first, in Georgetown, Texas, in the fourth quarter of 2025.
- Hyatt’s first upper midscale extended stay brand, Hyatt Studios opened its inaugural location in Mobile, Alabama, last month. Caliber’s deal marks the largest multiproperty commitment to the brand since it was first announced in 2023.
Dive Insight:
Caliber is set to develop the 15 hotels over the next three to five years and will seek to expand its agreement with Hyatt if market conditions allow, per the announcement. The firm plans to break ground on its second Hyatt Studios hotel in Scottsdale, Arizona, in the second quarter of 2026.
Hyatt has been “steadily growing” the Hyatt Studios brand since its 2023 introduction and has more than 50 executed deals to bring the brand to more than 20 new markets, Jim Chu, Hyatt’s chief growth officer, said in a statement.
"As a hospitality investor and developer since 2013, Caliber has taken notice that hotel inventory across the United States is lower today than it was in January of 2020. This, combined with historically low new construction starts, and a recent return of demand for hotel rooms, makes the case to develop Hyatt Studios hotels in attractive, underserved markets," added Caliber CEO Chris Loeffler.
Hyatt Studios hotels offer longer-term accommodations with “a comfortable, home-like experience,” according to Hyatt. The hotels are designed for markets where Hyatt’s presence is limited, including small-town, interstate and suburban areas, the brand’s global head, Dan Hansen, previously told Hotel Dive.
Last month, Hansen said the brand has “a very strong pipeline” and that “the development process and pipeline will continue to remain healthy” despite economic uncertainty and disruptions from tariffs.
In a first-quarter earnings report released last week, Hyatt lowered its RevPAR growth expectations for 2025 amid shifting consumer demand. On an earnings call, however, CEO Mark Hoplamazian noted that development interest in Hyatt brands “remains very strong,” adding that Hyatt is particularly bullish on the upper midscale segment.
