Hyatt Hotels is rolling out updated prototypes for both Hyatt Place and Hyatt Studios as the company looks to improve development economics and help owners navigate a challenging financing and construction environment. The new prototypes are part of a broader growth strategy that also includes financing solutions for Hyatt Studios developers and a focus on expanding Hyatt's presence in underserved U.S. markets.
For Hyatt Place, the company has introduced its fourth-generation prototype, designed to reduce both construction complexity and ongoing operating costs while maintaining the guest experience associated with the select-service brand.
The Gen 4 Hyatt Place prototype reduces the standard key count from 140 rooms to 127 rooms and cuts the overall building size by nearly 20 percent. The prototype also shifts from a six-story steel-and-concrete structure to a four-story wood-frame design. Together, those changes are expected to lower building costs by approximately 25 percent, improving project economics and potential returns for owners.
Hyatt is also refining the prototype for Hyatt Studios, its upper-midscale extended-stay brand. The updated design reduces the standard room count and overall square footage while adding an expanded three-bay lobby, required meeting space and updated building systems.
The prototype enhancements were developed using owner feedback and are intended to support Hyatt's effort to make new construction projects more financially viable.
The prototype changes come as Hyatt continues to build momentum behind Hyatt Studios. The brand currently has more than 70 hotels in its pipeline, representing more than 8,200 rooms. Hyatt positions the brand as an upper-midscale extended-stay offering built around efficient design, a lean operating model and flexible development options.
To further support development activity, Hyatt and HALL Structured Finance earlier this year announced plans for a structured loan program for qualified Hyatt Studios developers in the United States. The financing program is designed specifically for new-build Hyatt Studios projects and is expected to offer greater leverage than conventional lending structures, subject to underwriting and project qualifications.
The company said the financing initiative is intended to help offset ongoing challenges related to elevated construction and capital costs.
"Owners are navigating a complex development landscape, and the right owner-aligned growth strategy looks different from market to market," Julienne Smith, head of Americas growth for Hyatt, said in a statement. "Hyatt is in a strong position to support market growth with a broad portfolio of brands, flexible development options, the reach of the World of Hyatt loyalty platform and the support of our powerful commercial engine."