Hyatt Breaks Ground on Inaugural Hyatt Studios Hotel
Washington, DC
Hyatt Breaks Ground on Inaugural Hyatt Studios Hotel
Washington, DC
Hotel Dive:
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 , 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.
About Sandpiper
Based in Richmond, Va., Sandpiper, LLC is a nationally-focused real-estate investment organization recognized as one of the leading companies specializing in extended stay lodging properties. The company continues to develop its portfolio through ground-up development and selective acquisition of performing and non-performing properties. Sandpiper owns a total of 39 hotels under the Candlewood Suites (IHG), Courtyard (Marriott), ECHO Suites (Wyndham), Premier Suites (Extended Stay America), Residence Inn (Marriott), RiseWell Kitchen Suites (Sandpiper), Suburban Studios (Choice), and WoodSpring Suites (Choice) brands.
Sandpiper Hospitality ("SH"), an affiliated hotel management company, manages the entire Sandpiper portfolio and manages 30+ more hotels for unaffiliated third parties. SH has earned its position as the leading operator in the extended stay hotel segment of hospitality by combining the spirit of genuine, welcoming hospitality with superior financial returns, fueling the growth and prosperity of its various stakeholders – from associates to guests to owners and investors. For more information, visit www.sandpiperhospitality.com.
