Hyatt Hotels launches 13th brand

Hyatt Hotels Corporation has launched a new collection of independent hotels called Unbound.

The Unbound Collection by Hyatt will include both new and existing upscale, luxury and boutique properties.

So far, the existing hotels that have joined the collection include: The Driskill Hotel in Austin, The Hôtel du Louvre in Paris, and The Carmelo Resort and Spa in Carmelo, Uruguay. The Coco Palms Resort in Kauai, Hawaii will also be part of the collection when it re-opens in spring 2018 after a renovation.

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“The Unbound Collection by Hyatt provides us with a myriad of opportunities to grow, not only in new markets, but also in places we know our guests want to go,” Mark Hoplamazian, President and CEO of Hyatt Hotels Corporation, said in the announcement. “The collection of properties will allow us to reach the modern traveler who seeks one-of-a-kind experiences, but also wants the reassurance and loyalty program that comes with our brand.”

Unbound is what is known industry-wide as a soft brand. It’s been a common practice in recent years for large hotel companies to create such collections of hotels that maintain their own names and leadership. For a company like Hyatt, introducing such a collection is its way of reaching out to a base of customers their brands may not already be targeting. The independent hotels like the arrangement because they can take advantage of the larger company’s loyalty program, distribution channels, and marketing resources.

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Starwood Hotels and Resorts last year unveiled the Tribute Portfolio, its second collection of independent hotels. Marriott International, which is in the process of buying Starwood, has the Autograph Collection. Hilton Worldwide has the Curio Collection. Choice Hotels has the Ascend Collection.

Chekitan Dev, professor of marketing and branding at Cornell University's School of Hotel Administration and author of Hospitality Branding, says the companies are "taking a swipe at AirBnB to stem the continuing defection of independent hotels to these booking platforms."

As a result, the space is getting crowded.

"The bad news: lots of confusion around what a brand stands for and how it is different from its competitors," he says. "The good news: lots of options of brand affiliation for hotel owners, and lots of choices and deals for customers seeking a variety of brand experiences."

Maryam Banikarim, Chief Marketing Officer of Hyatt Hotels, says Unbound will differ from those other collections in that it could include lodging opportunities other than hotels, such as a river cruise. The properties will be four- or five-star, though. Each one will have to have a unique story or some other kind of "social currency," she says.

"There will be a high-quality nature to the portfolio but also something fun, considering how consumers like to share their experiences on social media," she said in an interview. 

"Consumers generally are focusing more on experiences than things," she added. "We've been getting a lot of demand from owners wanting a product like this and demand from consumers wanting a product like this and we thought the time was right."

Hyatt, based in Chicago, already has 12 brands, including Hyatt Place and Hyatt Centric. Unbound is its 13th brand.