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Orchestrating Hyatt’s Commercial Strategy in Europe with Heidi Kunkel

by Forbes Andorra

In a constantly changing hotel sector, marked by the challenges of COVID-19 and an increase in vacation rental platforms like Airbnb and online travel agencies such as Booking.com, the American group Hyatt, almost 1 300 hotels spread across 76 countries, must innovate and adapt. What strategies is Hyatt deploying in Europe, particularly in the high-end sector? What do the latest acquisitions of this American hotel giant tell us? And who is the woman orchestrating this transformation? Back to the key role of Heidi Kunkel, the new Senior Vice President of Commercial Services EMEA at Hyatt.

To begin, could you explain to us what your role at Hyatt entails?

Heidi Kunkel: “As Senior Vice President of Commercial Services for EMEA at Hyatt, I orchestrate sales, marketing and loyalty strategies, driving the growth of our hotel portfolio. My career has been punctuated by enriching experiences: before getting involved with Hyatt, I worked at Hilton Hotels and immersed myself in the world of Club Med for 15 years. The art of hospitality is not only my job, it is my true passion. »

How is Hyatt approaching its development in Europe, particularly in the high end?

Heidi Kunkel: “Our strategy is indeed focused on the luxury and leisure sectors, as evidenced by the significant increase in our portfolio: the share of Luxury, Lifestyle and Resort rooms at Hyatt increased from 32% in 2017 to 44 % in 2022 . The Hyatt brand to me is synonymous with excellence, and our expansion into key European cities is proof of our commitment to our guests. In 2022, 45% of new Hyatt properties were located in EMEA. This growth is both fueled by internal growth through the opening of new hotels (Grand Hyatt La Manga Club in Murcia, Schloss Roxburghe in Scotland, etc.) but also by acquisitions such as in 2021 of the Apple Leisure Group, a hotel group which operates 121 hotels in 13 countries. This strategic acquisition transformed our portfolio, allowing us to position ourselves as a leader in all-inclusive resorts. Today, Hyatt’s portfolio in the EAME region includes more than 210 properties, an increase of 173% over 5 years. »

How has Hyatt’s asset- light strategy enabled faster growth for the group?

Heidi Kunkel: “Let’s start by defining Hyatt’s asset-light strategy: that of focusing on managing and franchising hotel brands rather than owning the underlying real estate assets. Under the asset light strategy , the vast majority of our hotels are owned by third-party investors, and most are owned by third-party investors, such as investment funds, hotel groups and individuals or through partnerships. Today, the group has a pipeline with hundreds of hotels expected to join Hyatt’s portfolio in the coming years.

The advantages of this strategic approach are multiple for Hyatt:

  • It allows us to stay focused on what we do best: providing our customers with a best-in-class experience.
  • It offers us access to a vast network of hotels without the heavy investment of real estate.
  • It minimizes the risks associated with real estate ownership, which is often synonymous with high fixed costs.
  • It promotes accelerated growth with reduced investments.

«This strategy allows Hyatt to benefit from faster and more profitable growth in key markets, while reducing its risks.»

How many hotels do you have in France and do you have any new openings in 2024?

Heidi Kunkel: “In France, we operate around ten hotels, or 5% of our EAME portfolio, which corresponds to a little less than 2,800 rooms, relatively few compared to Spain which has, for example, more than 50 hotels . However, we will open the Hyatt Place Rouen in the 3rd quarter of 2024 . Hyatt Place Rouen will offer 85 rooms and will be developed from a former school building, located near the train station and the old city center. »

How have strategic partnerships with Lindner and the acquisition of the Mr & Mrs Smith platform transformed Hyatt’s offering?

Heidi Kunkel: “Hyatt recently entered into an exclusive collaboration with Lindner Hotels , a German family-owned hospitality company, to bring more than 30 hotels and resorts in Germany and Central and Eastern Europe to the Hyatt portfolio, under the one of our soft brands , JdV by Hyatt, as part of a franchise agreement. We are strengthening our franchise model without direct acquisition and improving our operational performance. At the same time, the acquisition of Mr & Mrs Smith, for almost 60 million euros, a reservation platform with more than 1,500 luxury and boutique properties, expanding our presence in more than 20 new countries. This expansion translates into a doubling of Deluxe Rooms, a tripling of Resort Rooms, and a quadrupling of Lifestyle Rooms in five years – which also boosted membership in our World of Hyatt program , which increased by 260 % over this same period for a total of 37 million members to date  !»

 Any advice for our readers to optimize our hotel reservations?

Heidi Kunkel: “To optimize your hotel reservations, particularly to obtain the best possible price, I advise you to join loyalty programs. For our group, it’s the World of Hyatt . As a member, you can save up to 10% with the member rate at participating hotels, receive upgrades confirmed at time of booking, or enjoy a free night after staying at 5 different Hyatt brands. »

What attracted you to the hospitality industry? And what aspect of your job do you find most rewarding?

Heidi Kunkel: “What inspired me to pursue a career in the hospitality industry was above all my passion for travel and cultural diversity. At one point, I aspired to become a diplomat. Today, I realize that our industry is a kind of mini-UN, a meeting place of diverse cultures. The idea of ​​working in a sector offering such diversity was very attractive to me. What I find most rewarding is being able to positively influence diversity and inclusion within our industry. This is an area where there is still much to be done, and I hope I can inspire others by my example. »

How would you define your leadership style? And have you had a particular mentor in your career?

Heidi Kunkel: “My leadership style, dynamic and collaborative, is the result of a journey rich in learning and open-mindedness, as evidenced by my early immersion in the Japanese language and culture. I attach great importance to active listening, a key skill that enriches every interaction. Over the years, I have had the privilege of meeting inspiring figures, such as the former Executive Vice President of Human Resources at Club Med, now Senior Vice President of Human Resources for Louis Vuitton Worldwide, Olivier Sastre , who became more than a colleague and mentor: a true friend. I learned to use these interactions as a mirror, revealing the positive and developmental aspects of my leadership, and to focus on strengthening my strengths. This approach allows me to continue to grow as a leader and inspire my team to do the same. »

One last question: what advice would you give to your younger self?

Heidi Kunkel: “I would advise myself to have more fun, laugh more and travel more (with Hyatt!)”

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