Hyatt Hotels Corporation

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Gevork Papiryan wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality.

Copyright © 2014, Richard Ivey School of Business Foundation

Version: 2014-09-11

In August 2006, Global Hyatt Corporation opened the world’s first Hyatt Place hotel just outside Chicago in Lombard, Illinois. The Lombard location was the first Hyatt Place-branded hotel to open following
Global Hyatt Corporation’s recent acquisition of AmeriSuites, an upscale chain of all-suite business-class
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As the CEO since
2006, he also shepherded the company through its late 2009 initial public offering and oversaw its subsequent growth into a multi-brand lodging firm.6
In 2006, Global Hyatt Corporation created two select-service brands, Hyatt Place and Hyatt Summerfield
Suites. In 2007, Hyatt introduced its Andaz brand and opened its first hotel without the Hyatt name — the
Andaz Liverpool Street in London, England. Despite its brand awareness, the company was 10th in the list of the top worldwide hotel groups with the greatest number of rooms (see Exhibit 1).
As of the beginning of 2011, Hyatt Hotels Corporation managed, franchised, owned and developed Hyattbranded hotels, resorts and residential and vacation ownership properties around the world. The company’s worldwide portfolio consisted of 453 properties in 45 countries, under brand names that ranged from the ultra-luxury Park Hyatt and upscale Grand Hyatt and Hyatt Regency to the lowercategory Hyatt Place and Hyatt House. The company’s net income was $66 million (see Exhibits 2-7).7
China and India were the second- and third-largest markets for Hyatt Hotels Corporation, after the United
States. Hyatt opened its first overseas hotel, the Hyatt Regency Hong Kong, in 1969. Before 2011, Hyatt had 11 hotels in China in first-tier cities such as Beijing, Hong Kong, Macau, Shanghai, Shenzhen and
Taipei. In 2010, Hyatt had
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