Hyatt has grown its systemwide portfolio through company and brand acquisitions galore, including its most recent purchase of lifestyle company Standard International last month.
On the heels of that deal, which industry experts called a move to quickly scale Hyatt’s portfolio and boost guest loyalty, Hotel Dive took a look back at another buy that has led to global growth for Hyatt: its 2021 acquisition of Apple Leisure Group.
Hyatt purchased the luxury resort-management services, travel and hospitality group from affiliates of KKR and KSL Capital Partners and assumed its AMR Collection brand portfolio of approximately 100 hotels and resorts in 10 countries. Those hotels became Hyatt’s Inclusive Collection, which has since expanded organically with new brands and hotels.
Melanie Benozich, Hyatt associate vice president for marketing and global branding, who joined Hyatt from AMResorts and heads the Inclusive Collection, spoke with Hotel Dive about the collection’s evolution alongside changing traveler demand, Hyatt’s strategy around immersive experiences and its global growth plans through 2025.
This interview has been edited for length and clarity.
HOTEL DIVE: How has Hyatt’s Inclusive Collection evolved over the last several years?
MELANIE BENOZICH: Through the acquisition of Apple Leisure Group in 2021, Hyatt became the leading authority in the luxury all-inclusive space. We really set the bar on what it means to have a luxury all-inclusive experience, and we continue to drive the narrative, constantly evolving and innovating based on consumer trends and guest needs.
We are the world's largest and most enviable portfolio and the category's most experienced management team. The company was founded on the desire to reinvent the all-inclusive vacation experience. So over the years, it has evolved significantly, moving from a focus on basic packages to offering more luxurious and personalized experiences. And we continue to be trendsetters within the industry.
Where all-inclusives were known for providing simple accommodations, buffet-style dining, limited activities and primarily targeted budget-conscious travelers, [for] the founding company — which was Apple Leisure Group subsidiary AMResorts prior to the Hyatt acquisition — the idea was that we need to break the mold and really look at what the demand is for a higher-end luxury-focused experience.
Consumer preference has shifted, and as the industry adapted to meet that demand, we were right there continuing to drive innovation through creative and unique high-end products and services.
By 2021, prior to the Hyatt acquisition, [ALG’s AMR Collection] had six brands and 102 resorts. And then we evolved after the acquisition to 10 brands with 124 resorts. The idea is that the Inclusive Collection is committed to delivering unparalleled experiences, sophisticated design and personalized service. Those are things that have changed greatly when you look at the initial interpretation of what it meant to stay at an all-inclusive resort.
What consumer trends are driving luxury travel, and how does this impact Hyatt’s growth strategy for its Inclusive Collection?
Our travelers are increasingly seeking that personalized, authentic and sustainable experience during their vacation, and there's a growing demand for immersive cultural experiences where travelers can engage with local communities, traditions and cuisine. So we are perfectly positioned at our destinations to achieve these experiences that guests are looking for, as well as things like care for self and well-being.
Well-being is a big focus, and we provide many opportunities for relaxation, holistic programs and focus on mental health in terms of breathing, yoga, meditation and spa services.
We focus on very high-end all-inclusive resorts that cater to various needs — anything from a family vacation to a romantic getaway and to destination weddings and meetings. So we're actively expanding and developing properties in prime vacation destinations with luxury-focused amenities and experiences.
Hyatt’s Inclusive Collection is always about redefining what that all-inclusive travel experience looks like through innovative programming, world-class amenities and unique experiences. We are promoting innovation through gastronomic experiences, like culinary programs that feature farm-to-table dining, chef-led cooking classes, exclusive tastings and things of that nature.
What are Hyatt’s plans for U.S. expansion of its Inclusive Collection?
We currently do not have any U.S. destinations within the Inclusive Collection portfolio. We do recognize that there is an all-inclusive component that can work in the U.S. It's not something that we have on our list of any upcoming openings, but we do recognize that potential.
We focus on expanding into the vibrant international locations that offer those unique cultural experiences and luxurious retreats. It's interesting because, although domestic travel really helped drive the industry's recovery post-pandemic, it's international travel that has seen a significant uptick in 2024.
Europe is a destination where we do have a presence, and we continue to target those key international markets for us that align with our mission to provide immersive and high-quality experiences. Through 2025, Hyatt’s Inclusive Collection will open six resorts, including in new European destinations.
Skift Reseach’s State of Travel 2024 report noted, and this makes us feel really good, that U.S. outbound travel to Latin America and the Caribbean is thriving. So, we know that we are in the right space, the right destinations, where U.S. consumers are traveling to and where they want to be, and we continue to be in the places and provide the services and products that matter most to them.
We have a tremendous amount of new properties that are coming into the fold. We have six upcoming in the Americas, with two coming in Europe, including in Portugal and Greece.
Is brand acquisition something Hyatt is considering to scale the Inclusive Collection?
At a high level, we are always interested in growing, but growing with intent. We want to be where we know we can offer what our guests are looking for most. So there's always the opportunity for development in a variety of areas. But we don't have anything [in terms of acquisition] on the docket other than what's been publicly announced.
Correction: This story has been updated to reflect that Hyatt's Inclusive Collection plans to open six resorts, including in European destinations, through 2025.
