Hyatt Exits, Then Re-Enters Online Short-Term Vacation Rentals

Hyatt Hotels announced that it is creating a new short-term vacation rental arena, calling the new platform, Homes & Hideaways by World of Hyatt, which will “feature private homes and remote hideaways” in the U.S. Customers will be able to earn and redeem points from Hyatt’s reward program.

At the same time, the company is selling its existing vacation rental management business, called Destination Residences Management, to real estate investor, developer, and manager Lowe. “The business consists of management agreements for individually-owned resort residences across 36 properties in Colorado and Hawaii, as well as many of the properties’ homeowners associations (HOAs),” Lowe’s said. “Lowe’s hospitality management subsidiary, CoralTree Hospitality Group, will assume management of the rental units, HOAs and resort properties included in the transaction. The management business, currently known as Destination Residential Management, will be rebranded by Lowe and CoralTree.”

Things bounce back and forth between the dual announcements. Lowe said that it had, in 2018, sold its hospitality affiliate, Two Roads Hospitality, to Hyatt, showing that, sometimes in a very literal sense, what goes around comes around.

“The planned launch of Homes & Hideaways by World of Hyatt reinforces Hyatt’s commitment to providing more flexible stay experiences to suit the travel needs of every guest,” Hyatt wrote. “The focus on the premium vacation rentals segment will allow members to unlock access to residential rental accommodations across the United States in key travel destinations like Hawaii, Colorado, and more, with plans to grow the platform globally.”

“We are committed to evolving access to the type of accommodations World of Hyatt members are seeking that go beyond our hotels – from a large family who travels together or guests looking to work from anywhere for an extended period of time,” Amy Weinberg, senior vice president, brand, loyalty & data, Hyatt, said in prepared remarks. “This unique collection of curated homes will not only increase Hyatt’s home offerings but also showcase a solid trajectory of key market growth where our guests are traveling most and expanded opportunities to care for members in new ways and new places.”

“As part of the transaction, Lowe and CoralTree will soon be a key part of Hyatt’s forthcoming new vacation rental offering, Homes & Hideaways by World of Hyatt,” Lowe wrote. “The booking platform will provide the ability for the rental residences included in the transaction to be available for booking (standard and award booking) to the 40 million World of Hyatt members.” The company said that it is acquiring “management responsibility for more than 1,000 resort rental residences and 27 homeowners associations in Vail, Aspen/Snowmass and on three islands – Kauai, Hawaii Island, and Maui – in Hawaii to Lowe via CoralTree Hospitality Group.”

And that explains the transaction. Hyatt is dropping property ownership and management, opting instead to act as a booking platform, like many of its competitors.