Hyatt’s has today acquired the UK-based Mr & Mrs Smith booking platform for £53M. IHG and Mr & Mrs Smith currently have a distribution and marketing partnership that is expected to end soon.
Mr & Mrs Smith is a collection of 1,500 or so independent hotels that you can often find under other various marketing programs like Preferred Hotels. Mr & Mrs Smith is very similar to the Design Hotels collection that Marriott owns, or Small Luxury Hotels of the World (SLH), which currently has a loose partnership with Hyatt.
You can access Hyatt here and Mr & Mrs Smith here.
READ MORE: World of Hyatt Rate & Bonus Points Offers
Hyatt’s Announcement:
Hyatt completes acquisition of Mr & Mrs Smith travel platform that provides direct access to more than 1,500 boutique and luxury properties
Hyatt expects to maintain industry-leading net rooms growth into the future with increased focus on extended-stay in the Americas in addition to expansive opportunities globally across brand portfolio
CHICAGO (June 2, 2023) – Hyatt Hotels Corporation (NYSE: H) announced the completed acquisition of London-based Mr & Mrs Smith, a global travel platform that provides direct booking access to a carefully curated collection of more than 1,500 boutique and luxury properties. With this addition to the portfolio, World of Hyatt members will soon have even more rewarding stays and experiences to choose from, including more than 20 new countries for Hyatt such as Fiji, Croatia, Iceland and Anguilla. Hyatt acquired 100 percent of the asset-light Mr & Mrs Smith platform for an enterprise value of £53.0 million in cash consideration. The purchase price represents an attractive acquisition multiple in the high-single digits on projected stabilized earnings.
Mr & Mrs Smith Club:
Mr & Mrs Smith has a club, and the Silversmith and Goldsmith come with a monthly fee. The free tier only offers 1% of the revenue as a credit.
IHG & Mr & Mrs Smith Partnership:
IHG One Rewards Elite Beneifts:
IHG One Rewards members 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%)
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)
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Conclusion
It is likely 2024 before World of Hyatt members see any benefits of this acquisition, which partially depends on how fast the agreement between Mr & Mrs Smith and IHG can be terminated
This likely means an end to the marketing and distribution partnership that Hyatt currently has with Small Luxury Hotels of the World.
It remains to be seen how many of these 1,500 or so hotels that have distribution partnership with Mr & Mrs Smith is willing to pay more and also become World of Hyatt participating.
This reminds me of Marriott’s Design Hotels, that it acquired with the Starwood purchase. Some of these hotels, but not all, are Bonvoy participating but with few benefits.
You can often book these independent hotels much cheaper directly or through various OTAs, but SLH or Mr & Mrs Smith benefits only apply if booked through them.
