Hyatt Hotels Corporation has revealed plans for a new short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that will feature private homes and remote hideaways in the U.S. The company has also sold Destination Residential Management to Lowe.
When the offering launches, which is expected in the coming weeks, World of Hyatt members will have direct booking access to a collection of short-term private home rentals from beachfront escapes to mountainside ski chalets, where they can earn and redeem points beyond the traditional hotel stay.
The focus on the premium vacation rentals segment will allow its members to unlock access to residential rental accommodations across the U.S in key travel destinations like Hawaii, Colorado and more, with plans to grow the platform globally, the company reports.
“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,” said Amy Weinberg, SVP, brand, loyalty & data, Hyatt. “Homes & Hideaways by World of Hyatt brings a unique collection of curated homes which increases Hyatt’s home offerings and expands new ways and new places where we can extend care to members.”
In the near future, the Homes & Hideaways by World of Hyatt platform is expected to feature key existing DRM properties in top U.S. leisure destinations as part of offering members direct booking access to a collection of private homes featuring beachfront escapes, mountainside ski chalets, villas, country chateaus, cottages, townhouses, apartments, flats, penthouses and more. While every property will be unique, each is professionally managed by thoroughly vetted property management companies to enjoy a quality experience.
In the coming weeks, World of Hyatt members can benefit when they book their remote hideaway or hidden urban gem on the Homes & Hideaways by World of Hyatt platform. Homes & Hideaways by World of Hyatt member benefits will include earning points and tier-qualifying night credits on stays, as well as standard tier bonuses, and the ability to redeem points for stays at home rental properties.
In connection with the sale of the Destination Residences Management business, PJT Partners LP served as financial advisor to Hyatt and Latham & Watkins LLP acted as its legal advisor.
Lowe acquires Destination Residential Management
The Destination Residential Management business Lowe acquired 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 hospitality management subsidiary, CoralTree Hospitality Group, will assume management of the rental units, HOAs and resort properties included in the transaction. The management business will be rebranded by Lowe and CoralTree.
“Our hospitality management business was formed in 1973 to provide residential resort management services,” said Rob Lowe, co-CEO, Lowe. “This transaction represents a welcome return for Lowe and CoralTree to the roots of our business and to familiar markets where we have been active for decades. Lowe and CoralTree are committed to providing the same personalized service, meticulous attention to detail and spirit of hospitality that defined the company’s vacation rental management approach from the beginning.”
Interest in resort residence rental has increased dramatically over recent years, fueled by lifestyle changes, the desire for extended stays and the ability to work remotely from anywhere. “This is the ideal time to renew our commitment to this growing segment of the hospitality business,” added Mike Lowe, co-CEO, Lowe. “Lowe and CoralTree look forward to providing world-class service to our existing owners, HOAs and their guests, and to resort residence owners and guests in new markets across the country.”
As part of the transaction, Lowe and CoralTree will soon be a key part of Hyatt’s Homes & Hideaways by World of Hyatt.
The transaction will transition 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. Among the services provided will be owner relations and services, accounting and financial services, guest/concierge services, front desk and amenity management, maintenance and capital project oversight, marketing, distribution and pricing, housekeeping and procurement.
“CoralTree Hospitality is dedicated to delivering personalized service for our owner-clients and creating one-of-a-kind experiences for their guests,” said Tom Luersen, president, CoralTree Hospitality. “Residential resort management is how our company began, and it is a service that we know well. We foresee a bright future as we guide this business toward new achievements.”
In 2018, Lowe sold its hospitality affiliate, Two Roads Hospitality, to Hyatt. “When we selected Hyatt in 2018 as the buyer for Two Roads Hospitality, we were confident that we had chosen the best platform to position the assets of our hotel owners and partners for future investment success,” said Mike Lowe. “We appreciate Hyatt’s same confidence in Lowe by selecting us to guide this vacation rental management business to future growth and success.”
The 2018 sale included the Destination Residential Management business that Lowe had built starting in the early 1970s, and is now re-acquiring, as one component of the significantly larger business it sold to Hyatt.
The transition of management to CoralTree Hospitality began upon closing of the transaction and will continue over the next few months.
“We believe Lowe is well-positioned and highly qualified to operate the valuable business and to help it reach its maximum potential,” said James Francque, global head of transactions, Hyatt. “We are confident Lowe is the best steward to continue to grow the business even further.”
