December 7, 2023
Hyatt Hotels has broken 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 on Wednesday, December 6, reports Hotel Dive.
The Mobile, Alabama-based hotel, set to open in 2025, is among others in the Hyatt Studios pipeline; including planned properties in Marysville, California, and Portland, Maine.
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.
Hyatt, in collaboration with developer 3H Group has begun construction on the first Hyatt Studios location just outside of Mobile at Tillman’s Corner, near Mobile Bay and Mobile International Airport.
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.
Heightened developer demand for the product type bolstered Marriott International and Hilton to similarly launch extended stay brands, StudioRes and Project H3, 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.
Research contact: @HotelDive
