Hyatt Hotels: Global Leader in Hospitality Assignment Sample

Introduction Of The Hyatt Hotels Corporation, a leading multinational hospitality company

Hyatt Hotels Corporation is one of the leading multinational hospitality companies that manages its business all over the world through its hotels and resorts. It is an American company that is completely managed by the Pritzker family. They run theory businesses globally with the unique purpose of taking care of the people and they are doing the best in terms of service. The Hyatt Group is leading the group and it is clear by its annual revenue that it easily stands out from the rest of the competitors in the same sector. The overall business of Hilton and Accor can be compared with Hyatt, so the success graph of Hyatt can be easily visible.

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Glossary of References

“Net income” of the organisation, “revenue collection ratio,” “corporate governance,” “receivable turnover,” “net loss,” “annual revenue collection rate,” “overall business companies,” “net promoter score,” “business growth,” “employee or customer retention rate.”

A detailed description of the Organisations

Hyatt is a leading name in the hotel and hospitality sector that is providing its service since 1957. In these 65 years, they have successfully maintained their quality of service and still they attend to the customers in the same manner (Hyatt.com, 2022). They remain committed to caring for the people so they can serve them the best. It is a company made by a family that is the reason the ambience provides the vibe of being surrounded by one.

For years they have faced many changes but they keep their roots strong. In 1957 Jay Pritzker purchased a motel under the same name (hyatt.com, 2022). He and his brother worked hard to make that name turn into the brand and let it grow as a family. As a result of it in 2021, the Hyatt included more than 1150 hotels and properties in more than 70 countries and a total of 6 continents. They all are consolidated under one name, the “Hyatt Hotels Corporation.”. Another important brand that runs a successful business with Hyatt is Accor. It is a luxury brand that is internationally acclaimed. It has completed more than a half-century in business and innovation that made them the pioneer for many visionary hospitality leaders. Hilton is another leading hotel and resort, principally located in the USA and this company started its business in 1919 (hilton.com, 2022). It helps them to treat the guest and their colleagues in the same way and makes them one of the best in this business.

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Corporate governance

“Corporate governance” is one of the core components of a successful business organisation because it helps in the creation of a proper system of organisational rules and regulations that determines the operational process as well as the stakeholders of the companies. Apart from that, maintaining corporate governance, this organisation has implemented several business plans.

In terms of the board and management, all the business processes of this organisation are fully controlled by the president and the CEO of Hyatt. “The board of directors” of this organisation was elected by stakeholders and the board recognises the long-term goals for the success of the organisation. The principal responsibility of the directors of Hyatt is to evaluate the business judgement and believe in the beauty process of the organisation (Johnson et al. 2018). “The Nominating and Corporate Governance Committee” of this organisation recruit some qualified candidates as directors who have the quality for proper judgment, an expert in business communications as well as have great skill and knowledge for over thinking the business sights of the company.

Independence is one of the principal criteria for directors that guide them to perform their work freely and the majority of directors of this organisation are fully responsible for the success of this organisation. According to the “Sarbanes-Oxley Act,” any company across the world cannot make any individual loans as well as extensions for crediting to the directors as well as the executive officers. As per this regulation, the size of the “board of directors” of an organisation includes a minimum of 5 to a maximum of 15 members (Barzuza et al. 2019). The “board of directors” of Hyatt has 12 members to look after the business performance as well as implement different effective strategies for the success of the organisation. While Hilton has 10 members and Accor recruits 12 members in their “board of directors.”.

The board was set up by Hyatt with 4 committees to discharge different responsibilities: one looks at the audit performances, another is for talent or compensation management and one is for nominating for “corporate governance.”. The other committee looks after the financial performance of the organisation (Rosilawati and Arsyad, 2019). Self-evaluation is one of the most important aspects that is followed by the “board of directors” of Hyatt and they participated in several meetings and kept their performances confidential for the data safety of the organisation.

Analysis of financial performances of the companies

“The Hyatt Hotels Corporation” is one of the leading business organisations in the global hotel industry. This organisation has improved its business performance in terms of revenue collection over the years (Suryani and Nadhiroh, 2020). Other companies like Accor and Hilton in the hotel industry became close competitors of this organisation.

According to the above-mentioned figure, the receivable annual turnover of Hyatt is gradually increasing. This figure displays that the revenue collection rate increased by 5.6 % rate in 2018. In 2019, the percentage of revenue collection increased by more than 11.83% but during the pandemic situation due to the sudden outbreak of coronavirus, a huge business loss was seen in the revenue collection rate of Hyatt hotels along with other organisations of the hospitality industry. In 2020, the percentage of revenue collection of this organisation was reduced to 11.16% (Sharma et al. 2021). In the post-pandemic situation, the graph of the revenue collection increased by more than 17.30% from the previous year.

The most convenient competitor of Hyatt Hotels is Accor Group, which is another leading organisation in the global hospitality industry. According to the comparative study between Hyatt and Accor in terms of the overall business, it is disclosed that the business of Accor across the world is higher than the other two companies. According to this figure, it is clearly seen that in 2021, the marginal financial development of this is more than $50 billion, whereas Hilton improved its business by more than $24 billion (Suryani and Nadhiroh, 2020). The net income of this organisation is increasing after the pandemic situation. Hyatt is a company that earns comparatively lower margins that are around $11 billion. Business performances were hampered by Hyatt because of strict regulations during the pandemic situation.

This comparative study focuses on the promoter score between two leading hotel companies, Hyatt and Hilton. According to the figure, it is seen that the number of promoters of Hyatt increased by around 59%, whereas in Hilton it is 45%. The number of detectors in Hyatt is 52, with a percentage of around 23%, whereas in Hilton, the number of detectors is 227, with a percentage of 38%. From this study, it is seen that Hyatt is comparatively in a better position compared to Hilton in terms of “Net Promoter Score”.

This figure displayed that the annual revenue of Hyatt hotels is gradually increasing, which leads to the successful business performance of the organisation. This figure clearly denotes that in 2018, the increasing revenue collection rate is 1.27% and in 2019 it increased to more than 1.50%. In 2020, the increased revenue collection rate was 2.60% and it is expected that by the end of 2024, the revenue collection rate will be more than 5.80%.

Conclusion

Hyatt Hotels Corporation stands as a global leader in the hospitality industry, known for its strong corporate governance, commitment to customer service, and steady financial growth. Despite facing challenges during the pandemic, the company has shown resilience, with its revenue and promoter scores improving post-pandemic. In comparison to competitors like Accor and Hilton, Hyatt continues to expand its global presence while maintaining a family-orientated approach to hospitality. With strategic management and a focus on innovation, Hyatt is well-positioned for continued success in the evolving hospitality market.