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Marriott has increasingly prioritized hotel owners over guests, a trend that began under Arne Sorenson and has continued under CEO Jim Capuano. Capuano stated, “When I die, they’ll put the net-rooms growth number on my tombstone.” Marriott's approach of accepting fees from hotels regardless of quality has led to brand dilution.
For hotel chains that do not own their properties, the brand is their most valuable asset. Diluting this brand by associating with inconsistent or subpar hotels can lead to short-term revenue gains but long-term losses in customer trust and loyalty. Major hotel chains are thus trading long-term value for immediate profits, a strategy Hyatt now aims to pursue more aggressively.
Paul Daly, Hyatt’s global head of franchise and owner relations, discussed the company's strategy in an interview at the 2024 NYU International Hospitality Industry Investment Conference. Daly emphasized flexibility towards owners' needs while maintaining consistency for guests. He noted that lifestyle hotels offer more opportunities for flexibility compared to standardized brands like Hyatt Place and Hyatt House.
