Q&A with Oasis Collections CEO Parker Stanberry
How is Oasis' partnership with Hyatt a better fit than the
prior one with AccorHotels?
Stanberry: The product-customer fit is a bit clearer. Hyatt is the most
resolutely upscale of the large chains. We're an upscale, upper-upscale kind of
product. I also think Hyatt's pretty focused on business travel and they're
serving that business travel and corporate event use case, and that's a big
piece of what we do, as well. We're both based in the U.S., so in terms of pure
collaboration, that makes things easy.
What are some of the gaps you're able to fill for each other in
terms of market presence?
Stanberry: We're able to complement each other from a footprint
perspective a bit more clearly [than with AccorHotels]. For example, [Hyatt]
doesn't have much of a presence in Spain or Italy. We have strong portfolios in
Rome, Milan, Barcelona and Madrid. They're very strong in Asia, where we're
not. So when I think about our expansion plans, leveraging their strengths over
in Asia is something I see as a clear synergy.
How else will this partnership give you a leg up for growth?
Stanberry: [Hyatt] can help us from a
data perspective—the customer data—and help us identify markets we're not in
where our type of traveler would like to use Oasis. Also … as a bit of startup,
being able to leverage the infrastructure from a company like Hyatt is going to
be really helpful. We are focused on having the leading global footprint in
what we do. Not that we would compare ourselves to a pure booking platform like
Airbnb; what I'm speaking about is the higher-end, higher-service models.
Historically, people have found them pretty hard to scale, but to be able to
have a true global offering in a high-service way is something we're committed
to. We're in 22 cities now, 13 countries. Leaning on Hyatt to get to 50 markets
in the nearer term is definitely something I see.
Hyatt Hotels Corp. continues to explore business
opportunities beyond traditional hotel stays with an investment in Oasis
Collections.
Hyatt president and CEO Mark Hoplamazian didn't disclose
the amount Hyatt invested in the private accommodations provider, describing it
only as a "strategic minority investment" during Hyatt's
second-quarter earnings call. If the Oasis name sounds familiar, that's because,
until recently, AccorHotels held a 30 percent minority stake in the Miami-based
company.
AccorHotels has been exploring
adjacent businesses beyond its core hotel product via a
series of strategic investments and acquisitions. Now it seems Hyatt is going a
similar route, but with its own particular vision. "We have a unique
relationship with high-end travelers, and it's our mission to satisfy more and
more of their travel and experience needs beyond traditional hotels,"
Hoplamazian said. As a step in that direction, Hyatt acquired the Miraval Group
in January to increase
its wellness offering for high-end travelers.
Hoplamazian added that Hyatt is sizing up "other
opportunities, which we believe are complementary to our hotel business, will
resonate with our unique customer base, and will add to our growth story."
How Hyatt might integrate Oasis inventory into its
portfolio is still to come. "We are evaluating the best way for us to
create visibility to and engagement with our World of Hyatt guests for those
kinds of offerings," Hoplamazian said. "We do intend over time to
create a channel through which global Hyatt members can have alternative
offerings in the style of what Oasis does in its existing portfolio."
Cancellation
Policies
During Hyatt's earnings call, Hoplamazian fielded a
question about its cancellation policy and whether it intended to follow Hilton
and Marriott International, which pushed their systemwide policies from 24 to
48 hours. More recently, InterContinental Hotels Group for the first time enacted
a systemwide 24-hour cancellation penalty. Hoplamazian said a broad policy was
something the company would look at over time but that most of Hyatt's
properties already deploy a 48-hour or longer cancellation policy.
RELATED: Hilton & Marriott Roll Out 48-Hour Cancellation
Q2 Highlights
Hyatt's systemwide occupancy increased 1.6 percentage
points year over year to 77.8 percent. Average daily rate rose 0.2 percent to
$183.54.
In the U.S., group room revenue at full-service hotels declined
about 2 percent year over year, driven largely by the shift in Easter from
March to April between 2016 and 2017. Year-to-date U.S. group room revenue is
up about 3 percent from this same time in 2016. Group bookings pace for 2018 is
up mid-single digits with 60 percent of business on the books for Hyatt, while
pace for 2019 is down mid-single digits with 40 percent of business on the
books. U.S. transient room revenue, both business and leisure, increased 2
percent during the quarter.
Hyatt added 22 hotels, or 3,366 rooms, during the quarter
and is on track to add 60 total hotels during 2017. The company's systemwide
portfolio stood at 731 properties as of June 30.
Net
income increased 30.5 percent to $87 million. The company altered its prior
guidance for full-year revenue per available room growth from 0 to 2 percent to
1 to 3 percent.