Skift

Hyatt Is Playing Catch-Up in the Midscale Market

Hyatt, long known for luxury and upscale properties, is accelerating its entry into the midscale and extended‑stay segments. The company unveiled three new brands—Hyatt Studios for extended stays, Hyatt Select aimed at conversion‑friendly independent hotels, and Unscripted, a soft‑lifestyle label that lets operators retain their own identity while joining the Hyatt network. The rollout targets smaller markets where Hyatt currently has an average of four properties per city, compared with Marriott or Hilton’s typical fourteen. By offering conversion‑ready concepts and a flexible brand architecture, Hyatt hopes to quickly scale its footprint and capture the growing demand from middle‑income travelers who are less price‑sensitive than before. Analysts noted the contrast during a recent Miami visit, observing that while the city hosts flagship Hyatt and Grand Hyatt towers, the midscale offerings are barely visible. The strategy mirrors competitors’ playbooks: leverage existing independent hotels, provide brand standards, and generate higher average daily rates without the capital outlay of new builds. If successful, Hyatt’s diversification could boost RevPAR across its portfolio, improve brand resilience against luxury‑segment volatility, and pressure rivals to further innovate in the crowded midscale arena.