Hyatt has consolidated its presence in the Middle East with its luxury and upper upscale brands. As its regional headquarters move to Riyadh, the focus is on diversifying its expansion
Hyatt Hotels & Resorts recently announced the signing of two new properties in Neom’s luxury coastal destination, making it the only hotel company present in Magna, Saudi Arabia. The stunning 350-key luxury hotels – Park Hyatt Jaumur and Andaz Jaumur Marina – will be part of an exclusive destination that features a 300-berth marina with a gravity-defying cantilever rising above the largest of super yachts.
The hospitality company is making significant strides in strengthening its presence in the Middle East and Sub-Saharan Africa.
Hyatt is bringing its luxurious wellness retreat brand – Miraval – out of the US for the very first time and on to the shores of The Red Sea next year. “This will be complemented by the development of Grand Hyatt The Red Sea, which will provide convention facilities and multiple food and beverage outlets,” Stephen Ansell, newly appointed Managing Director for the Middle East & Africa region, tells us.
Located on the northwestern outskirts of the Saudi capital, Park Hyatt Riyadh Diriyah Gate and Hyatt Place Diriyah Gate are also slated to open next year. “In Madinah, Hyatt has five projects already under development.”
This year, Hyatt is opening the Park Hyatt in Johannesburg, the first Park Hyatt on the African continent. Hyatt Regency Harare The Meikles in Zimbabwe is now ready to welcome guests and up north, the much-anticipated Park Hyatt Marrakech opened doors over the summer.
The Numu training programme is being developed and will soon be rolled out to guide and prepare our Saudi workforce. We recognise the responsibility to make sure everyone is trained
– Stephen Ansell
In the UAE, where Hyatt proudly flags 13 hotels, it now has a big 17-ride waterpark under development right next to Grand Hyatt Dubai, in the heart of the urban metropolis. It is expected to cause quite a splash when it opens next year.
While maintaining a significant presence in Dubai, Hyatt has restructured its regional operations, moving its regional headquarters to the Saudi capital of Riyadh, Ansell tells us. “I think that’s an indicator of where we expect much of the growth to happen in the next few years.
“Saudi is where we are recruiting a lot of young, new talent to the industry, and that requires, a structured training approach,” he says. Hyatt’s training programme Numu, which means growth in Arabic, is playing an important role in developing local talent and supporting Saudi Arabia’s 2030 vision.
“The Numu training programme is being developed and will soon be rolled out to guide and prepare our Saudi workforce, as the country prepares to welcome 150 million visitors by 2030. We recognise the responsibility to make sure everyone is trained and prepared to meet this growing demand,” says Ansell.
Operating hotels in Saudi Arabia will come naturally to Hyatt – historically, it was one of the first hotel brands to open in the Kingdom. Ansell fondly recalls working at the old Hyatt Regency Riyadh in 1996 cut to a few weeks ago, when a visit to one of their club lounges offered him a glimpse into the future of Saudi Arabia. “You can see the massive King Salman Park, which is in construction in the distance and that really gives you an idea of the scope of the construction that’s currently taking place across the Kingdom. We are excited to be part of the journey.”
Hyatt’s growth strategy includes diversifying brands and targeting secondary cities, TTN understands in conversation with Felicity Black-Roberts, Vice President of Development. “We’ve concentrated on our luxury and upper upscale brands so far and obviously the Middle East is a lot more than just that.
“Our strategy involves a two-pronged approach. Firstly, we analyse our existing brand portfolio and identify opportunities to better serve our diverse customer base. This may involve introducing new brands or expanding into different segments.
“Hyatt House is a great example of our strategy to cater to different segments of the market,” she explains. “It offers a more affordable, yet still upscale experience, appealing to a wider range of travellers.
Secondly, we constantly evaluate untapped markets and explore potential opportunities for growth. We’re excited about the launch of Miraval The Red Sea, which will offer a unique wellness experience unlike anything in the region.
“This aligns with our focus on experiential travel and caters to a specific niche market.
“Hyatt Studios, for instance, is an ideal brand for the region, offering modern accommodations with kitchenette facilities. This brand can cater to both inbound and domestic travellers, across the Middle East but especially in growing markets like Saudi Arabia.”
In the region, due to its somewhat limited portfolio of hotels, Hyatt is perceived as a boutique brand with a special presence and Black-Roberts challenge will be to retain that image while moving forward with development.
For us, growing with intent is absolutely key, she says. “Is this the right project? Is this the right place? Is it going to speak to our customer base the way that we want it to?
“And if it’s not, then we’re not growing for growth’s sake,” she says.