Dive Brief:
- Hyatt Hotels Corporation broke ground on the inaugural location of its Hyatt Studios brand, the company’s first upper midscale extended stay brand in the Americas, the company announced Wednesday.
- The Mobile, Alabama, hotel, set to open in 2025, is among others in the Hyatt Studios pipeline, including planned properties in Marysville, California, and Portland, Maine.
- Since Hyatt Studios’ launch in April, strong interest from hotel developers has contributed to its growing pipeline, Hyatt said in the announcement. Driven by developer demand, the hotel company is among several of its peers, including Marriott and Hilton, to expand in the extended stay space this year.
Dive Insight:
Hyatt, in collaboration with developer 3H Group Inc., has begun construction on the first Hyatt Studios location just outside of Mobile at Tillman’s Corner, near Mobile Bay and Mobile International Airport.
The hotel marks a “construction milestone in bringing the Hyatt Studios brand to life,” Dan Hansen, global head of Hyatt Studios, said in the company announcement.
Hansen previously told Hotel Dive that Hyatt Studios will be built in locations where Hyatt's presence is currently limited, including suburban, interstate and small-town markets.
When the Mobile hotel was first announced in August, Hyatt said there were signed letters of interest for more than 100 other Hyatt Studios hotels as well.
That pipeline has since expanded. According to Hyatt, the company recently executed a franchise agreement for a Hyatt Studios location in Portland, Maine, slated to open in 2025. Giri Hotel Management, a hotel group that operates more than 50 hotels across New England, will develop the 122-room property at Portland International Jetport.
“The continued interest from the development community reaffirms the Hyatt Studios brand’s compelling value proposition,” Hansen said in a statement.
Hotel developers have been particularly drawn to extended stay projects this year, as they can offer more value than some select-service properties and increase gross operating profits.
Heightened developer demand for the product type bolstered Marriott International and Hilton to similarly launch extended stay brands StudioRes and Project H3, respectively. During a third-quarter earnings call, Marriott President and CEO Anthony Capuano said the company was in talks for StudioRes deals in more than 300 U.S. markets.
