Hilton to Accelerate Expansion in Fast-Growing Lifestyle Category with Addition of Graduate Hotels to Global Brand Portfolio

Hilton announced an agreement with Adventurous Journeys Capital Partners (“AJ Capital”) to acquire the fan-favourite Graduate Hotels® brand, adding a significant growth opportunity for the global hospitality leader in the fast-growing lifestyle hotel market.  

Hilton will pay $210 million to acquire all rights to the Graduate brand worldwide, enter into franchise agreements for all existing and signed pipeline Graduate Hotels, and become responsible for the brand’s future development and growth. AJ Capital will remain the owner of the more than 35 operating and pipeline Graduate properties, each of which will be operated under long-term Hilton franchise agreements.  

The transaction, which is expected to close in the second quarter, subject to customary closing conditions including review and approval pursuant to Hart-Scott-Rodino, will be immediately accretive to Hilton. The company expects the fee contribution for the first full year of ownership to be approximately $16 million.

“Adding Graduate Hotels to our portfolio of award-winning brands accelerates our expansion in the lifestyle space by pairing an existing much-loved brand with the power of Hilton’s strong commercial engine to drive growth,” said Chris Nassetta, president and CEO, Hilton. “We have long had a high bar for adding brands to our portfolio, whether organically or through acquisition, and Graduate will be another driver of growth for us, presenting a unique opportunity to serve more guests in more sought-after destinations. With thousands of colleges and universities around the world, we believe the addressable market for the Graduate brand is 400-500 hotels globally.”

Hyatt set to open new Andaz hotel in Miami

Following a property-wide renovation, luxury lifestyle hotel Andaz Miami Beach is slated to open in late 2024, with reimagined spaces, programming and a new culinary collaboration with Jose Andrés Group.

Hyatt Hotels Corporation, announced an update on the anticipated renovation of The Confidante Miami Beach and its complete transformation into the new Andaz Miami Beach, which is slated to open in the fourth quarter of 2024. The new hotel, which is owned by Sunstone Hotel Investors, Inc., will go beyond the familiar to discover and define guests’ personal essence while immersing themselves in the spirit of the eclectic culture around them through a barrier-free redesigned lobby, two reconceptualized pools and outdoor recreation experience, an exhilarating spa, inspiring guestrooms, suites and meeting spaces, and immersive dining experiences with the hotel’s new culinary provider, José Andrés Group. As part of the hotel’s transformation the iconic oceanfront property will temporarily suspend operations starting Monday, March 25, 2024, through the conclusion of the renovation.

"We are thrilled to unveil this new chapter for Hyatt as our hotel becomes the Andaz Miami Beach, blending the essence of Miami Beach with the allure of imaginative travel to stimulate guests’ curiosity and self-expression,” said Amy Johnson, general manager, of Andaz Miami Beach. “This exciting journey brings the luxury lifestyle Andaz brand to Florida along with exciting collaborations like Jose Andres Group. We look forward to welcoming back our guests and local community to a completely new and bold hotel, embodying the distinctly native experience and expressive nature of the Andaz brand, while still capturing the essence of Miami Beach.”

Marcus Hotels & Resorts, Hempel Real Estate and Robinson Park Close Acquisition of Loews Minneapolis Hotel

The 251-room property will be rebranded as The Lofton Hotel under the Tapestry Collection by Hilton flag; Marcus Hotels & Resorts to manage the property.

Marcus Hotels & Resorts, a nationally recognized owner and management company and division of The Marcus Corporation announced this week that it, Hempel Real Estate, and Robinson Park have closed on the acquisition of the Loews Minneapolis Hotel. The property will be managed by Marcus Hotels & Resorts, effective today, and will be rebranded immediately as The Lofton Hotel under the Tapestry Collection by Hilton flag, making it the first Tapestry Collection hotel in Minnesota. The terms of the transaction were not disclosed.

“Since 1993, Marcus Hotels & Resorts has been invested in elevating the travel and leisure experience in Minneapolis, a city we greatly admire and appreciate,” said Michael Evans, president of Marcus Hotels & Resorts. “The Lofton Hotel’s chic design, incredible location, and ample amenities create a welcoming destination for travellers visiting the Twin Cities and experiencing all they have to offer. With The Lofton Hotel now part of the Tapestry Collection by Hilton platform, we look forward to welcoming our new associates to the Marcus Hotels & Resorts family and providing our guests with the high-quality service and experience for which Hilton and we are known. We also look forward to playing an active part in the continued resurgence of the downtown business and social community.”

Hyatt Reports Fourth Quarter and Full Year 2023 Results

Record Total Fee Revenue Led to the Highest Cash Flow from Operations in Company History

Full Year System-Wide RevPAR Increased 17%

Hyatt Hotels Corporation last week reported fourth quarter and full year 2023 financial results. Highlights includes:

Net income was $26 million in the fourth quarter and $220 million for the full year of 2023, and exceeded the full year outlook for 2023. Adjusted net income was $68 million in the fourth quarter and $276 million for the full year of 2023.

Diluted EPS was $0.25 in the fourth quarter and $2.05 for the full year of 2023. Adjusted Diluted EPS was $0.64 in the fourth quarter and $2.56 for the full year of 2023.

Adjusted EBITDA was $241 million in the fourth quarter and $1,029 million for the full year of 2023, and exceeded the full year outlook range for 2023.

Adjusted EBITDA does not include Net Deferrals and Net Financed Contracts of $33 million1 in the fourth quarter or Net Deferrals and Net Financed Contracts of $158 million1 for the full year of 2023.

Comparable system-wide RevPAR increased 9.1% in the fourth quarter and 17.0% for the full year of 2023, compared to the same periods in 2022, and exceeded the full year outlook for 2023.

Comparable owned and leased hotels RevPAR increased 5.9% in the fourth quarter and 15.5% for the full year of 2023, compared to the same periods in 2022. Comparable owned and leased hotels operating margin was 26.2% in the fourth quarter and 25.4% for the full year of 2023.

Comparable Net Package RevPAR increased 11.3% in the fourth quarter and 15.3% for the full year of 2023 compared to the same periods in 2022.

Net Rooms Growth was 5.9% for the full year of 2023, in line with the full year outlook for 2023.

Pipeline of executed management or franchise contracts was approximately 127,000 rooms.

Share Repurchases were approximately 890 thousand Class A shares for $95 million in the fourth quarter and approximately 4.1 million Class A shares for $453 million for the full year of 2023.

Capital Returns to Shareholders were $500 million for the full year of 2023, inclusive of dividends and share repurchases, in line with the full year outlook for 2023.

1 Represents the sum of Net Deferrals and Net Financed Contracts. Refer to Apple Leisure Group Segment Statistics on schedule A-18 for additional details.

Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution. RevPAR growth exceeded the high end of our guidance range and we had industry leading net rooms growth for the seventh consecutive year. This led to a record level of fees and the highest free cash flow in Hyatt's history. We returned $500 million to our shareholders and achieved an asset-light earnings mix of approximately 76% for the full year, a testament to the successful execution of our strategy."

Four Seasons Resort Mauritius at Anahita Retains the Forbes Travel Guide Five Star Rating for the Fifth Year in a Row

Situated along one of the island’s largest natural lagoons on the east coast, Four Seasons Resort Mauritius at Anahita features stunning scenery, fringed by azure blue waters and a natural coral reef. The stand-alone accommodation options - ranging from one-bedroom villas to multi-bedroom Private Retreats – along with a diverse range of dining and resort experiences make idyllic island vacations truly memorable.

Five Years, Five Stars

Recognising not just the Resort setting, but also the quintessential Four Seasons service, Forbes Travel Guide 2024 has once again awarded the Resort with Five Stars. The only global rating system for luxury hotels, restaurants, spas and ocean cruises, Forbes Travel Guide announced its Star Awards 2024, revealing that the Resort has been given Five Stars once again (the highest category). “The watermark that underlines any Four Seasons experience is our unrivalled attention to detail and an excellence in service and experiences,” says Martin Dell, General Manager. “We are incredibly proud and honoured to have retained the Forbes Travel Guide Five Star award: our focus is to make every experience personal and fulfilling – for our guests as well as our colleagues.”

Limitless Possibilities

Special access to two spectacular golf courses, one designed by Ernie Els and a signature course by Bernhard Langer on the adjacent Ile Aux Cerfs, make this a dream destination for golf enthusiasts. “With dramatic volcanic rock formations juxtaposed against the impossibly green tropical foliage, it can be hard to stay focused on the putting greens,” smiles Armelle Duval, Director of Rooms. Besides golf, the Resort offers a wide range of seaside activities, from kayaking and sailing to snorkelling out into the reef, and even fishing excursions into the deeper blue. The expansive property boasts seven dining options including the latest opening - the premium grill-house concept Upper Cut. “From exquisite pan-Asian flavours at Umi.Zaka to the rustic Italian fare at Acquapazza, our distinct concepts cater to all palates,” adds Duval.

Award Winning Relaxation

Recognized for its continued excellence, the Resort’s overwater Spa has been bestowed with Four Stars for its unique concept, combining local organic ingredients with sophisticated skincare products. “Impactful and innovative are our two mantras at the spa,” explains Joelle Jennepy, Senior Director of Spa. “We pride ourselves on curating experiences such that every individual gets a personalised holistic healing.”