In late April, Hyatt announced that it would acquire luxury booking platform Mr. & Mrs. Smith. This deal has now closed, so let’s go over all the details.
In this post:
Hyatt acquires Mr. & Mrs. Smith for £53 million
Hyatt has acquired the Mr. & Mrs. Smith platform for an enterprise value of £53 million in cash consideration, described as representing “an attractive acquisition multiple in the high-single digits on projected stabilized earnings.” It’s nice to see how quickly this deal went from being announced to being finalized.
For those not familiar with Mr. & Mrs. Smith, the company describes itself as a “travel club and boutique hotel specialist,” and is affiliated with over 1,500 hotels, and counting. The way I view it, Mr. & Mrs. Smith is essentially a luxury travel agency and marketing agency of sorts.
Mr. & Mrs. Smith doesn’t manage any hotels, but rather gets a commission when people book through the company. In turn, Mr. & Mrs. Smith offers some perks to those who book through the company. Think of it as being along the lines of Leading Hotels of the World (LHW) and Small Luxury Hotels of the World (SLH) — these companies also don’t manage hotels, but rather market a variety of properties.
Arguably Mr. & Mrs. Smith has even fewer requirements than LHW and SLH when it comes to exclusivity and standards. You’ll find that many Mr. & Mrs. Smith properties also belong to other hotel groups or marketing organizations, and Mr. & Mrs. Smith markets properties belonging to many of the world’s best hotel brands.
Hyatt believes that this acquisition will enhance Hyatt’s position in the luxury market, and further strengthen Hyatt’s distribution capabilities, especially in Europe. Hyatt hopes that this will help the brand forge relations with additional hotel owners, and more than one million Mr. & Mrs. Smith members.
Hyatt plans to unveil direct booking access to properties within the Mr. & Mrs. Smith portfolio through Hyatt’s distribution channels. Hyatt states that it’s “exploring ways to enable World of Hyatt members to earn and redeem points across eligible hotels in the Mr. & Mrs. Smith collection.” However, even though the deal has now closed, we don’t yet have any more details about what that will look like.
What does this deal mean for World of Hyatt members?
Mr. & Mrs. Smith doesn’t own or manage any hotels, but rather is just essentially a marketing organization. So what does this really mean for World of Hyatt members? While Hyatt hasn’t yet announced details, here’s my read on the situation:
- I suspect World of Hyatt members will be able to earn points for stays at Mr. & Mrs. Smith affiliated properties, but only when booking through Hyatt; this would be similar to Hyatt’s partnership with Small Luxury Hotels of the World
- I suspect World of Hyatt members will be able to redeem points for stays at Mr. & Mrs. Smith affiliated properties, but likely at a fixed point per dollar amount, since Hyatt will be paying out of pocket for these stays
- I wouldn’t expect much in the way of elite benefits for stays at Mr. & Mrs. Smith properties, aside from the special amenities that the company currently offers guests
Let me again emphasize that while this will grow the portfolio of hotels that Hyatt markets, it won’t grow the actual portfolio that Hyatt manages. I do feel like part of Hyatt’s motivation here is to convince some Mr. & Mrs. Smith affiliated properties to join one of Hyatt’s brands, though it remains to be seen how successful Hyatt will be with that.
I should also note that for the past few years, Mr. & Mrs. Smith has had a partnership with IHG One Rewards, so I think it’s safe to say that partnership will be ending shortly.
I think this is a positive development, but definitely manage your expectations here. It’s great to think that 1,500+ luxury hotels will now in some way be associated with Hyatt, but don’t expect that points redemptions will be a great deal, that you’ll get your standard elite perks, etc. While Hyatt has acquired Mr. & Mrs. Smith, that doesn’t mean a whole lot to the 1,500+ hotels affiliated with the company, necessarily, aside from a new distribution platform for marketing hotels.
Bottom line
Hyatt has completed its acquisition of Mr & Mrs. Smith, which is essentially a luxury travel agency. None of the 1,500+ hotels are directly joining Hyatt’s portfolio, though World of Hyatt members will likely eventually be able to earn and redeem points at some or all of these hotels.
There could be some cool opportunities here to be rewarded for stays at independent luxury properties, or even to redeem points for them, but I’d recommend managing your expectations.
What do you make of Hyatt acquiring Mr. & Mrs. Smith?
"I wouldn’t expect much in the way of elite benefits for stays at Mr. & Mrs. Smith properties,"
I expect that less and less at standard Hyatt properties. Been in several arguments with WoH about how some Hyatt owned properties are allowed to deny globalist breakfast benefits simply because they choose to close restaurants at "full service properties."
Shame - Hyatt points are near impossible to earn if you're not in the US, preferred when they partnered with IHG.
I have found that while these properties look appealing, that all require payment at booking although that will be refunded if you cancel within a specified time prior to your arrival. At least, this is how the bookings have worked through IGH. As a result, given that I do not want to prepay hotel bookings even if they are “refundable,” (which takes weeks typically) for expensive properties like these far ahead of time, I find...
I have found that while these properties look appealing, that all require payment at booking although that will be refunded if you cancel within a specified time prior to your arrival. At least, this is how the bookings have worked through IGH. As a result, given that I do not want to prepay hotel bookings even if they are “refundable,” (which takes weeks typically) for expensive properties like these far ahead of time, I find this brand’s marketing and booking practices misleading and onerous. Would be great if items like this were addressed in any mention/review of them.
I take issue with the fact that Mr. and Mrs. is not a gender-inclusive term and thus unprofessional for a hotel brand. How are LGBT people staying at these hotels supposed to identify themselves?
I take issue with your inability to read other comments and see that you are alone in just being a Karen
As a Hyatt Globalist I really don't care about the points earned or redeemed, but I do care to earn qualifying nights at interesting, unique properties.
I was amazed by surprisingly high redemption value in some IHG properties, especially high end, and Mr & Mrs Smith ones.
I doubt Hyatt members will get similar value when they become bookable with Hyatt points.
Also, the "but likely at a fixed point per value amount, since Hyatt will be paying out of pocket for these stays" part is weird.
It's not that different from how Hyatt pays to SLH hotels and IHG pays to Mr. & Mrs. Smith hotels currently, all at a fixed, lower value than cash bookings. Hotels can freely decide if they want the value of points bookings.
Hyatt is getting ridiculous with all these acquisitions. It seems like a rag tag collection, without much integration or brand identity (the Lindner acquisition is also perplexing.) Hyatt has enough brands now, why not integrate new hotels into the existing brand portfolio and strengthen the Hyatt brand rather then dilute with yet another brand?
Reminds me of Swissair in the 90s acquiring all these marginal airlines with their infamous Hunter strategy (another disastrous job by...
Hyatt is getting ridiculous with all these acquisitions. It seems like a rag tag collection, without much integration or brand identity (the Lindner acquisition is also perplexing.) Hyatt has enough brands now, why not integrate new hotels into the existing brand portfolio and strengthen the Hyatt brand rather then dilute with yet another brand?
Reminds me of Swissair in the 90s acquiring all these marginal airlines with their infamous Hunter strategy (another disastrous job by McKinsey!) - we all know how that worked out.
I've made similar comments when following reports of Hyatt acquiring yet another group independent hotels.
Having been told repeatedly that...
I've made similar comments when following reports of Hyatt acquiring yet another group independent hotels.
Having been told repeatedly that "size matters", Hyatt has clearly vowed to address its "size" problem by adopting a model that can achieve that goal the fastest, but is highly risky: mergers and acquisitions (M&A).
The alternative approach, by which Hilton CEO Christopher Nassetta swears is, "organic growth", which is slow but allows a company to retain full control of and over its brand.
According to experts:
It would be interesting to compare how the string of independent hotels that Hyatt recently acquired compare with hotels in Hyatt's so-called "Timeless Portfolio" (i.e., Hyatt Regency, Grand Hyatt, Park Hyatt, Hyatt House, Hyatt Place...) from the POV of World of Hyatt and elite recognition. I bet there is a palpable difference in "flavor", since the independent hotels largely retain their preexisting management styles, like Mr & Mrs Smith hotels are likely to, which is why mergers and acquisitions "dilute or strip away control"
Swissair cease to exist.
McKinsey is alive and strong.
Is it the strategy or the execution, LOL.
Why don't we elect McKinsey for President, conquer the political world.
Start a McKinsey fund, manage by McKinsey, and conquer the business world.
Make McKinsey the new totalitarian world domination, aka. the latest iteration of illuminati.
Or was that Bain already in the process?
Hyatt pays out of pocket when you redeem for a Hyatt property, too. (And with Hyatt's asset-light portfolio, this--usually--isn't just a transfer price.)
I guess my point is just because IHG made a different arrangement with Mr & Mrs Smith, it's not set in stone Hyatt must, too.
I, for one, expect a tighter integration with Hyatt than with IHG. In some sense, IHG is punished now for taking half-measures with Mr Mrs Smith.
Well put...
For a 4-night stay I booked at Bergen Børs Hotel in Bergen, Norway, through IHG as a Mr. & Mrs. Smith property, here's what the IHG app says will be the Diamond elite benefits that I will enjoy at this property,:
Well put...
For a 4-night stay I booked at Bergen Børs Hotel in Bergen, Norway, through IHG as a Mr. & Mrs. Smith property, here's what the IHG app says will be the Diamond elite benefits that I will enjoy at this property,:
I will earn points at the standard IHG Diamonds rate and buffet breakfast is included in the room rate, which is good enough for what will be a business trip.
One hopes that World of Hyatt will be able to negotiate more substantive elite perks for their members staying at Mr & Mrs Smith. ;-)
@DCS
I assumed you were also IHG Ambassador ?
IHG Diamond + Ambassador gets some extra perks:
https://www.ihg.com/rewardsclub/content/us/en/mrmrssmith
InterContinental® Ambassadors, Royal Ambassadors and Kimpton® Inner Circle members will enjoy:
10 points per $1 USD (on eligible room rates)
A GoldSmith welcome gift (subject to availability)
Bonus points on every stay (Silver Elite = 20%; Gold Elite = 40%; Platinum Elite = 60%; Spire Elite = 100%)
Complimentary room upgrade (up to one category higher, subject...
@DCS
I assumed you were also IHG Ambassador ?
IHG Diamond + Ambassador gets some extra perks:
https://www.ihg.com/rewardsclub/content/us/en/mrmrssmith
InterContinental® Ambassadors, Royal Ambassadors and Kimpton® Inner Circle members will enjoy:
10 points per $1 USD (on eligible room rates)
A GoldSmith welcome gift (subject to availability)
Bonus points on every stay (Silver Elite = 20%; Gold Elite = 40%; Platinum Elite = 60%; Spire Elite = 100%)
Complimentary room upgrade (up to one category higher, subject to availability upon arrival)
Versus
IHG One Rewards members will enjoy:
10 points per $1 USD (on eligible room rates)
A BlackSmith welcome gift (subject to availability)
Bonus points on every stay (Silver Elite = 20%;
Gold Elite = 40%; Platinum Elite = 60%;
Spire Elite = 100%)
---------
Out of experience,
If one emails them in advance about pre-stay requests, a hotel will upgrade in advance
@Roberto -- Yes, I am an InterContinental Ambassador/IHG Diamond. I have not had much experience with how IHG recognizes elite benefits, having only stayed at InterContinental Chicago and voco by IHG Singapore. What I reported is simply what the IHG app states are elite benefits to expect at Mr & Mrs Smith, which is no much at all other than earning points.
I suspect that the information at the link you provided may be outdated...
@Roberto -- Yes, I am an InterContinental Ambassador/IHG Diamond. I have not had much experience with how IHG recognizes elite benefits, having only stayed at InterContinental Chicago and voco by IHG Singapore. What I reported is simply what the IHG app states are elite benefits to expect at Mr & Mrs Smith, which is no much at all other than earning points.
I suspect that the information at the link you provided may be outdated because it still refers to "Spire Elite = 100%". I believe that the app info, which is by type of property, is more up to date.
I will report after my stay in September, but by that time it will likely be a moot point because Hyatt would have concluded the deal to purchase Mr & Mrs Smith platform...
Never understand any real benefit of using the Smiths if I'm part of a chain. It made some sense with the IHG structure, but with what Hyatt owning them doesn't make much sense.
However, if during transition there is an overlap I can book some properties using Bonvoy, IHG, or WOH, wow!
I wanna book that Gorah Elephant Camp with points!
Will this affect any reservations currently on the books that were made through IHG? I have one for early June in France.....
eek, i have some in july in italy
Interesting. Just last night I booked a stay at Bergen Børs Hotel in Bergen, Norway, through IHG as a Mr. & Mrs. Smith property.
No IHG elite perks for the stay other than I will earn IHG One points...
Question: will all "1500+ Luxury Properties" stay with them now that a single hotel brand is buying them? I think not. I would think the same if IHG or Hilton or Marriott purchased them as well. Why have your independent property associated with any other brand than your own? Plenty of other marketing/booking services out there. This is an odd choice IMHO.
They need to drop the Mr. And Mrs. gimmick, it’s very heteronormative and exclusionary.
Gay man checking in here - no, it's not, and no, they don't.
LOL, another Gay man here, sitting with his husband at brunch for our 15th Anniversary and both of us agree, NO it's not and NO they don't. Neither of us are offended in any way whatsoever. Get a life.
Your comment is exclusionary. Go waste your time on Twitter instead.
Also gay. Not even remotely bothered by their brand name and image. I think you've lost the plot on diversity, equality and inclusion.
Adding to the gay and not bothered or offended. Agree that @William is missing the point.
When politically correct clashes with common sense.
Comment replies say it all.
How far will it go until this ends.
This gay husband doesn’t mind heterosexual marriage. I assume the Mr. And Mrs symbolizes a nice formal hetero couple as our traveling hosts
You're taking the Mick, right? You're either having a lend, or you need therapy.
Im neither hetero nor normative, thank god(dess). Totally unoffended by it. It would be cute if they also had a Mr and Mr and Mrs&Mrs sub brand that offered LGBTQI+ friendly selected properties, but I can already imagine that itself being criticised for not having the other 8 billion combinations of relationship partners that are now needed to be included in the description
Why so pessimistic about these hotels providing elite privileges (or even point value)? They’re already doing this with IHG, so the systems are already in place to provide elite benefits, just change “IHG Diamond” to “Hyatt Globalist”. As several have pointed out, there are also sometimes valuable redemption opportunities with IHG. That’s all with a more arms length partnership than an outright acquisition. So why would a Hyatt acquisition provide inferior benefits to the IHG...
Why so pessimistic about these hotels providing elite privileges (or even point value)? They’re already doing this with IHG, so the systems are already in place to provide elite benefits, just change “IHG Diamond” to “Hyatt Globalist”. As several have pointed out, there are also sometimes valuable redemption opportunities with IHG. That’s all with a more arms length partnership than an outright acquisition. So why would a Hyatt acquisition provide inferior benefits to the IHG partnership?
Very sad as IHG loyalist.
IHG Redemptions at Mr & Mrs smith properties were sometimes amazing value, especially with the Mr & Mrs Smith perks thrown in (such as a 60 min massage for two on a 1-night redemption stay).
Furthermore they gave Diamond and Ambassador perks/upgrades.
Couple questions, since I have never used IHG:
1. Were points redemptions along the same lines of similar luxury hotels? Or typically exorbitant amounts with the occasional deal you mentioned?
2. If booking thru Mr & Mrs Smith with a cash rate, did they honor your IHG status?
SLH bookings through Hyatt cost 30% more than directly through the hotels. Whether Mr & Ms. Smith will provide more value to Hyatt loyalists will be a big question mark.
Surprised you didn’t mention that Fogo Island Inn is part of the collection!
Big bummer from the IHG standpoint. I got a few fantastic redemptions through them for hotels in Europe, including using a few free night certs + 10/15k mark up that otherwise would have cost a fortune.