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Skift Take
This all about the luxury sector, as Hyatt gains the UK agency’s 1 million higher-spending members, and could double the number of boutique and luxury properties it offers. The risk is some of the more loyal Mr and Mrs Smith members will feel they’re being sold out, losing that “exclusive” feel which made the brand stand out.
Hyatt is acquiring UK boutique hotel booking site Mr and Mrs Smith for about $66 million (£53 million — the price is subject to change based the value of the pound at close or something like that or exchange rates).
The online specialist, which offers direct booking to hand-picked 1,500 boutique and luxury properties, was founded 20 years ago by husband and wife team Tamara Lohan and James Lohan, and the company began life as a travel guide.
The transaction is anticipated to close in the second quarter, Hyatt said in a statement. If approved, Hyatt plans to add direct booking access to properties within the Mr & Mrs Smith platform through Hyatt’s website and mobile app.
More than 100 Mr & Mrs Smith employees are expected to join Hyatt’s Commercial Services team. Tamara Lohan will remain Mr & Mrs Smith’s CEO, reporting to Mark Vondrasek, Hyatt’s chief commercial officer. James Lohan will serve as Mr & Mrs Smith’s chief creative officer.
A Boost to Hyatt
Adding Mr and Mrs Smith could make 36-million-member Hyatt’s loyalty program more valuable to users. The footprint of boutique properties is more than double what’s now offered within Hyatt direct booking channels, including in more than 20 countries where Hyatt doesn’t have any type of property, such as Fiji, Croatia, Iceland and Anguilla, noted Richard Clarke, managing director of AllianceBernstein, in a research note.
A Solid Landing for Mr and Mrs Smith
Mr & Mrs Smith has financially struggled in the past few years, particularly as the pandemic hit. In 2021 the agency reported $10 million in revenue, and a loss of $695,000, according to documents filed at Companies House. The year before, it generated $8.7 million in revenue and a loss of $4.5 million.
In 2019, it racked up a loss of $757,000 on revenues of more than $20 million, but in 2018 made a profit of $563,000 — off revenues of almost $18 million.
Hyatt will now seek to leverage Mr & Mrs Smith’s 1 million-strong membership base. It aims to launch direct booking access to properties within the luxury specialist’s platform through its distribution channels, including Hyatt.com and the World of Hyatt app.
The deal could double the number of global boutique and luxury properties within Hyatt’s direct booking channels, while Hyatt said it was exploring ways to enable World of Hyatt members to earn and redeem points across eligible hotels in the Mr & Mrs Smith collection.
The acquisition also adds 20 countries to Hyatt’s hotel footprint, including Fiji, Croatia, Iceland and Anguilla. Hyatt also recently bought Dream Hotel Group’s lifestyle brand and management portfolio for $300 million.
Lohan spoke at this year’s Skfit Future of Lodging Forum (below), where she urged hotels to push boundaries.
“That such a heavyweight global business as Hyatt would see what we have built and want to take our brand and nurture it into its next stage is thrilling and unbelievable to me,” said Tamara Lohan, founder and CEO of Mr and Mrs Smith, on LinkedIn on Friday. “I know that, under their stewardship, this business will get better and better – we share strong values, and both companies are strongly purpose-driven.”
“We see a lot of synergy between our collective ethos of care, and we look forward to working together to bring our shared focus to new, memorable stay experiences for guests and World of Hyatt members – and introduce new guests to Hyatt hotels around the world,” said Vondrasek.
Story updated with additional analysis.
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