On April 28th, 2023, Hyatt Hotels Corporation (Hyatt) announced the acquisition of the Mr & Mrs Smith platform and gained access to over 1,500 luxury and boutique hotels. The acquisition helped to continue the accelerated growth of Hyatt in 2023 and built on the Dream Hotel Group and Lindner Hotels & Resorts acquisitions as well as the internal growth and expansion of existing Hyatt brands. However, one unexpected fallout of the Mr & Mrs Smith acquisition is the potential end of the Hyatt and Small Luxury Hotels partnership.

The Hyatt And Small Luxury Hotels Partnership

The Hyatt and Small Luxury Hotels (SLH) partnership began in 2018 and gave World of Hyatt members access to hundreds of luxury boutique hotels in the Small Luxury Hotels portfolio. The partnership allowed World of Hyatt members to both earn and redeem World of Hyatt points at participating SLH properties. One of the best aspects of this partnership was the extension of premium benefits (i.e. free breakfast, free wifi, early check-in, late check0out, and suite upgrades) to all World of Hyatt members, regardless of World of Hyatt status, who booked a hotel stay at participating SLH properties via World of Hyatt. However, many SLH properties severely limited access to award redemptions and the constant movement of SLH properties in and out of the Hyatt partnership sometimes left World of Hyatt members frustrated.

Credit. Small Luxury Hotels. Villa Petriolo.

The End Of The Hyatt and Small Luxury Hotels Partnership

There are now multiple rumors that the Hyatt and SLH partnership will end in the second half of 2024. This timing would potentially coincide with the full integration of the Mr & Mrs Smith properties into the World of Hyatt program. Despite the “rumors” label, this possibility stems from multiple data points:

1. The Hyatt purchase of Mr & Mrs Smith with full integration into the World of Hyatt program.
2. Recent launch (January 2024) of the Capital One partnership with Small Luxury Hotels.
3. Lack of new SLH properties bookable via the World of Hyatt program.
4. Key SLH properties leaving the World of Hyatt partnership.
5. Reduced award availability of multiple SLH properties in the second half of 2024.

Final Thoughts

At this point in time, these rumors are just that. Rumors. There is no confirmation that the Hyatt and SLH partnership will end in 2024. Ideally, Hyatt keeps the partnership with SLH while simultaneously fully integrating Mr & Mrs Smith into the World of Hyatt program. This would make Hyatt a true powerhouse in the luxury and boutique hotel space. However, the end of the partnership seems inevitable given the current strategic direction of both Hyatt and SLH.