What is the purpose of the funds collected for the 'World of Hyatt' program for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
g arrangements in the future.
Currently, the Hyatt Group deposits all funds that it collects for the Loyalty Program (including sales of points and other related fees) into segregated accounts and invests a portion of the funds in various investment securities (primarily fixed income) that independent investment managers manage. These funds are designated to fund the Loyalty Program obligations, including all marketing and administrative costs, and current and future award redemptions. The Hyatt Group may periodically change the method of funding the Loyalty Program, the assessment methodology and other program attributes. An independent accounting firm audits the Loyalty Program on an annual basis and we will make copies of the audit reports available upon request. We may periodically change the assessment methodology and other program attributes in the future.
The Hyatt Group also has contractual arrangements with participating airlines under which Participating Hotel guests may choose to receive airline miles, in lieu of Loyalty Program points, as a result of their stay. The Participating Hotel must pay the actual cost of those miles that the airline charges to the Hyatt Group. Guests choosing airline miles for a stay at a Participating Hotel are not entitled to Loyalty Program points for that stay.
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- Quality Assurance, Franchisee Compliance, and Guest Satisfaction. The Hotel must participate in quality assurance, compliance and guest satisfaction programs that we periodically develop and modify (collectively, the "Quality Assurance and Compliance Program"). You must pay your allocable share of all fees and other costs associated with the Quality Assurance and Compliance Program. Our representatives may inspect or audit the Hotel at any time, with or without notice to you, to determine whether you and the Hotel are complying with the Hotel System, System Standards, and the terms of the Franchise Agreement, and you will give them free lodging (subject to availability) during the inspection period.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the funds collected for the 'World of Hyatt' loyalty program are designated to cover the expenses associated with running the program. These expenses encompass marketing and administrative costs, as well as the redemption of current and future awards. The Hyatt Group deposits all funds collected for the Loyalty Program, including sales of points and other related fees, into segregated accounts and invests a portion of the funds in various investment securities (primarily fixed income) that independent investment managers manage.
Brand Hotels must participate in the World of Hyatt program and pay all associated charges. The Hyatt Group determines the amount assessed to each Participating Hotel to operate the Loyalty Program, and this amount may change periodically. Currently, the assessment for each participating Brand Hotel, including The Standardx hotels, is 4.5% of all eligible revenue generated at that hotel from members of the program (excluding applicable taxes) who provide their World of Hyatt member number when booking or 2.25% of that eligible revenue when a guest is enrolled on-property in World of Hyatt for that enrolling stay.
An independent accounting firm audits the Loyalty Program annually, and The Standardx will make copies of the audit reports available upon request. The Hyatt Group may periodically change the method of funding the Loyalty Program, the assessment methodology, and other program attributes. This means that the costs associated with the program and the way they are allocated could change over time, impacting the financial obligations of The Standardx franchisees. The Hyatt Group also has contractual arrangements with participating airlines under which Participating Hotel guests may choose to receive airline miles, in lieu of Loyalty Program points, as a result of their stay. The Participating Hotel must pay the actual cost of those miles that the airline charges to the Hyatt Group. Guests choosing airline miles for a stay at a Participating Hotel are not entitled to Loyalty Program points for that stay.