Hyatt - History

History

The original owners were entrepreneurs, Hyatt von Dehn and Jack D. Crouch. Von Dehn was eager to get out of the hotel business after a few years, so he sold his share in the hotel to Jay Pritzker. Jay's younger brother Donald Pritzker, under Jack Crouch's mentorship and along with his brother Jay, took over day-to-day operations of the company and acquired motels and hotels.

Over the following decade, Donald's handling of the day-to-day operations and Jay's leadership and deal-making abilities helped drive acquisitions and financial strategy, making Hyatt the fastest-growing hotel chain in the United States. After Donald's death in 1972, Jay remained at the helm, helping to shape Hyatt into a major competitor in the hospitality industry.

In 1969, Hyatt opened its first overseas hotel, the Hyatt Regency Hong Kong (which closed at the end of 2005 and was demolished; a new facility replacing the old opened in 2009. In 1980, the Grand Hyatt and Park Hyatt brands were introduced. Hyatt has become known for its resorts after the opening of Hyatt Regency Maui in 1980. Today Hyatt has over 490 hotels worldwide.

In 1972, Hyatt formed Elsinore Corporation, a subsidiary to operate the Four Queens Hotel and Casino and the Hyatt Lake Tahoe. After Hyatt became a private company in 1979, Elsinore was spun off into a public company. The company opened the Playboy Hotel and Casino as a joint venture with Playboy Enterprises.

In June 2004, substantially all of the hospitality assets owned by Pritzker family business interests, including Hyatt Corporation and Hyatt International Corporation were consolidated under a single entity called Global Hyatt Corporation. This created a hospitality company with a single balance sheet, a single organization and a single focus. On June 30, 2009, Global Hyatt Corporation changed its name to Hyatt Hotels Corporation.

In December 2004, Hyatt Hotels Corporation announced it would acquire AmeriSuites, an upscale chain of all suite business class hotels from affiliates of the Blackstone Group, a New York based private equity investment firm. Blackstone had inherited AmeriSuites from its 2004 acquisition of Prime Hospitality. The AmeriSuites chain was rebranded and converted to a new concept called Hyatt Place. With Hyatt Place, Hyatt Hotels Corporation will better compete with the limited service products Courtyard by Marriott and Hilton Garden Inn offered by industry leaders Marriott International and Hilton Worldwide, respectively.

In December 2005, Hyatt Hotels Corporation announced a second limited service acquisition, Summerfield Suites. Again the seller was the Blackstone Group. Blackstone had inherited Summerfield Suites from its purchase of Wyndham International. In January 2012, Hyatt Summerfield Suites were rebranded as Hyatt House and positioned to compete in the upscale extended stay market against brands such as Residence Inn, Homewood Suites and Staybridge Suites.

On August 6, 2009, it was reported that Hyatt Hotels Corporation filed plans to raise up to $1.15 billion in an initial share sale. On November 4, 2009, Hyatt completed an initial public offering and began trading publicly on the New York Stock Exchange under the symbol H. According to the filing, Mark S. Hoplamazian will serve as CEO and Thomas Pritzker will serve as Executive Chairman. The public offering is a result of the breakup of the Pritzker family empire. Accused of looting family trusts, Thomas and cousins Penny and Nicholas were forced to wrest control of the family businesses when she and other family members were sued by cousin Liesel Pritzker claiming fraud and seeking damages in excess of $6 billion.

On August 31, 2009 three Hyatt hotels in Boston laid off their entire housekeeping staffs, outsourcing the work to a Georgia-based company creating strong public backlash. Massachusetts Governor Deval Patrick threatened a boycott of the hotels by state employees traveling on official business. The housekeepers, who were fired without previous notice although some of them had worked for the Hyatt for over 20 years, became collectively known as the Hyatt 100. Hyatt offered a Job Assurance Program, which arranged for a new job with another employer for any employee who wanted one or job retraining at their previous Hyatt rate of pay, as well as extended healthcare benefits. In December 2009, Hyatt was named the "Massachusetts Scrooge of the Year" by Jobs with Justice.

As of June 30, 2012, Hyatt Corporation's worldwide portfolio consisted of 492 properties. On September 1, 2011, Hyatt acquired Hotel Sierra which has 18 properties in 10 states. Along with Hyatt Summerfield Suites hotels, several of these properties were rebranded as HYATT house in January 2012.

Hyatt Hotels Corporation operations several chains, and the company and its people have been recognized from publications including Travel + Leisure, Conde Nast Traveler, Latina Style and DiversityInc Magazine. The Human Rights Campaign has awarded the company 100% in the HRC Equality Index for eight consecutive years. The Hyatt Regency brand is the oldest brand in the company, with the Grand Hyatt and Park Hyatt brands being introduced in 1980. Of these properties, some are styled as "resort" properties, and may feature spas or other recreational facilities. Other brands include Hyatt Place, designed as a limited service offering targeted to the business traveler. An extended stay chain, Summerfield Suites, was acquired by Hyatt in 2005, and was renamed Hyatt House in January 2012. Hyatt also launched a new brand, Andaz, in April 2007. The first hotel to bear this brand was The Great Eastern Hotel in London, with additional properties now open in San Diego, West Hollywood, Shanghai and New York City (Andaz Wall Street & Andaz 5th Avenue). Hyatt recently announced a large expansion of the Andaz brand, with properties expected to open Maui, Papagayo (Costa Rica), Turks and Caicos, Amsterdam, and Delhi.