Scottsdale, Arizona-based real estate developer Caliber Hospitality Development will be working with Hyatt Hotels Corp. to open 15 new Hyatt Studios locations in the United States.
Per the development rights agreement with Hyatt, Caliber will roll out 15 hotels in Arizona, Colorado, Nevada, Texas and Louisiana over the next three to five years.
The first hotel in the partnership will break ground outside of Austin in Georgetown, Texas, in the fourth quarter of this year. The second hotel is slated to break ground in the second quarter of next year in Scottsdale, Arizona.
Chris Loeffler, CEO of Caliber, said in a news release that the deal was attractive to the firm because hotel inventory across the country is smaller now than it was in January 2020, and there are "historically low new construction starts" amid a return of hotel room demand.
Hyatt announced the new upper-midscale, extended-stay brand in 2023 and opened its first location — Hyatt Studios Mobile / Tillmans Corner — in February. Each Hyatt Studios hotel has around 122 apartment-style suites with in-room kitchens. Other features include EV charging stations, complimentary grab-and-go breakfast, a 24/7 market, self-service laundry, fitness studio and more.
The hotel brand is also designed to provide owners "an efficient build cost, lean operating model, and design flexibility," according to the news release, all backed by Hyatt's commercial engine.
Jim Chu, chief growth officer at Hyatt, said there are 50 executed Hyatt Studios deals taking Hyatt into 20 new markets.
“This significant development agreement will advance Hyatt’s ongoing evolution, as we aim to make our brands even more profitable for owners and more desirable for travelers,” he said in the release.
Caliber, which has more than $2.9 billion of managed assets, expects this development deal to deliver $400 million in additional hotels under management.
On Hyatt's first-quarter earnings call last week, CEO and President Mark Hoplamazian announced the first Hyatt Studios location opening and the continued growth plans for the brand.
"We are excited about the future growth by Studios and the momentum we are building to expand our brand presence in the upper midscale segment in the United States," Hoplamazian said on the call.
