The debut of the first Hyatt Studios location, which opened in Mobile, AL, represents Hyatt’s entry into the upper-midscale, extended-stay segment—a space the company had yet to fully explore—and also a return to hospitality for an industry veteran.
“This has been a labor of love for me personally,” said Dan Hansen, head of Americas development and global head of Hyatt Studios for Hyatt Hotel Corporation, who came out of retirement after serving as Summit Hotel Properties executive chairman/CEO/president to create the brand. “It really is a major milestone for us. I only would’ve come out of retirement for something that was meaningful, and Hyatt Studios really hit all those buttons for me.”
The first Hyatt Studios debuted last month in Mobile, AL.
Hyatt Studios was designed to meet the continuing demand for extended-stay lodging, a segment that has surged in popularity following the COVID-19 pandemic. As Hansen explained, the new brand helps Hyatt enter markets previously untapped. “This being extended-stay allows us an opportunity to fill a lot of white space across the country—in secondary, tertiary and suburban markets,” he said.
Hyatt already operates Hyatt House, an upscale extended-stay brand, but its construction costs and market fit limited broader rollout, according to Hansen. “It does exceptionally well and is an incredibly strong brand, but because of the offering and it is expensive to build, as most upscale hotels are,” he added, “Our ability to put that in markets where we had very little coverage was limited.”
The new brand addresses that constraint by offering a more cost-efficient build with high-quality amenities.
“As we looked at the opportunity set and what market or what type of hotel was most attractive, which is obviously extended-stay, we also focused on how we deliver that to markets where we wouldn’t otherwise have any representation,” Hansen said. “We have 22 new markets that we’ve never been in before with 27 new owners. That’s a real credit to being not just thoughtful but tactical about announcing a new brand.”
The brand targets travelers staying multiple days or weeks, such as traveling nurses, families construction workers and youth sports teams. Each room is designed to balance comfort and efficiency, featuring kitchenettes and modern furnishings.
Hansen emphasized the importance of guest needs evolving alongside the blending of business and leisure travel, noting, “The comforts of home are continuing to be more and more important.”
In a move to prioritize digital comfort, Hyatt Studios features fiber internet direct to each room. “Internet access is not even table stakes anymore—it has to be high speed,” Hansen said. “We also made EV chargers a brand standard, so guests don’t even have to think about where the nearest station is.”
The first Hyatt Studios, developed in partnership with 3H Group, has shown strong performance. Guest satisfaction and construction quality have both exceeded expectations, according to the Hyatt executive.
“Hyatt Studios is ramping faster than any new-build hotel I’ve been part of,” he said. “We’ve had a great reception from partners that place long-term guests. They’re excited to see Hyatt enter this space.”
Though the brand is mostly focused on new-build properties, Hansen acknowledged there may be occasional conversions if the layout fits the extended-stay mold.
Looking ahead, Hyatt Studios is expected to be Hyatt’s fastest-growing new-build brand, with around 40 properties planned to be open by 2027. The executive also hinted at international ambitions and ongoing experimentation with modular construction to reduce build times.
Broader growth strategy
The launch of Hyatt Studios is part of a much larger development narrative for Hyatt, which recently announced a record development pipeline.
“We want to play at the high end of every chain scale we represent,” said Hansen. “So going into upper-midscale was very intentional—to broaden our exposure and grow the World of Hyatt program.”
That strategy also includes Hyatt’s other recent brands like Hyatt Select and a reinvigorated focus on its Essentials and Classics brands like Hyatt Place and Caption by Hyatt. Hansen highlighted efforts to work directly with owners to lower construction costs and tailor experiences that deliver on Hyatt’s high standards.
Despite economic headwinds—ranging from interest rates to supply chain issues—Hansen remains optimistic. “The success I’ve seen in my 20-year career came from leaning in when times were tough. And that’s exactly what we’re doing now,” he said.
In reflecting on Hyatt’s culture and leadership, Hansen pointed to CEO Mark Hoplamazian as a key differentiator.
“Mark is who he is—consistently—across colleagues, investors and owners,” he said. “That kind of authenticity is our superpower. It’s what connects us with our partners and what will carry Hyatt Studios forward.”
