Hyatt Targets Upscale Travelers Seeking Locally Rooted Stays With New Brand

Hyatt Hotels Corp. H unveiled Unscripted by Hyatt on Friday, a new brand targeting upscale travelers who value locally rooted, authentic experiences. The collection-style model allows each property to retain its distinct identity while aligning with Hyatt’s signature quality and service.

With over 40 hotels in discussions, Unscripted focuses on conversions and adaptive reuse, offering independent owners access to Hyatt’s global platform and its 56 million–member World of Hyatt program. Dan Hansen, head of Americas development, said the brand gives owners flexibility without sacrificing guest expectations.

The launch supports Hyatt’s broader strategy to grow across five distinct brand portfolios. Its Lifestyle segment grew 11% year-over-year in Q1 2025, adding 30+ hotels and planning openings in Miami, Shanghai, Lisbon, and Turks & Caicos under the Thompson and Andaz brands.

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Hyatt’s Luxury portfolio rose 5% in the same period, with key projects in Los Cabos, Kuala Lumpur, and Mayakoba. Demand for branded residences is also rising, with over 50 developments open or underway.

The rapid expansion across Essentials, Lifestyle, and Luxury segments is translating to meaningful financial upside for Hyatt. A 10.5% increase in net rooms as of Q1 2025 suggests growing revenue streams and broader market penetration.

The push into branded residences adds a high-margin, capital-light income stream. Additionally, loyalty program growth strengthens customer retention and reduces marketing costs, ultimately improving EBITDA margins.

The diversification of Hyatt’s brand offerings also insulates it from overreliance on any single customer segment, offering resilience amid shifting travel trends.

In early May, Hyatt reported first-quarter results, beating expectations with $1.72B in revenue and 46 cents EPS. RevPAR rose 5.7%, net rooms grew 10.5%, and adjusted EBITDA hit $273M. The company reaffirmed its 2025 outlook, signaling steady growth.

Related ETFs: Consumer Discretionary Select Sector SPDR Fund XLY, Global X MSCI China Consumer Discretionary ETF CHIQ.

Price Action: H shares are trading higher by 0.29% to $131.82 at last check Friday.

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