Is The Standardx required to participate in the Hyatt Group's frequent guest loyalty program?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
tel without first telling us.
-
- World of Hyatt Program. Brand Hotels must participate in, and pay all charges related to, the Hyatt Group's frequent guest loyalty program (the "Loyalty Program"), called the "World of Hyatt" program. The Hyatt Group assesses each Participating Hotel and certain other hotels an amount in the Hyatt Group's discretion to operate the Loyalty Program, which amount may change periodically. The assessment for each participating Brand Hotel (including the Hotel) is currently 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.
Under separate contractual arrangements, the following companies will participate in alliances with the World of Hyatt program in 2025: (i) the master licensee for Hyatt Residence Club and Hyatt Vacation Club, our shared ownership brands; (ii) HyCard, Inc., our affiliate (in relation with JPMorgan Chase Bank, the issuing company of the World of Hyatt credit cards); (iii) American Airlines; and (iv) Headspace, Inc. The Hyatt Group may allocate assessments for these programs at different rates than those applied to Brand Hotels, given the difference in the products and services being offered to Loyalty Program members. Owners of Participating Hotels bear no cost from including these programs in the Loyalty Program. The Hyatt Group also may agree to other similar joint marketing or co-branding 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.
Source: Item 6 — Other Fees (FDD pages 20–36)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, Brand Hotels must participate in the Hyatt Group's frequent guest loyalty program, known as the "World of Hyatt" program. This participation includes paying all charges related to the program. The Hyatt Group determines the amount each Participating Hotel must pay to operate the Loyalty Program, and this amount may change periodically.
The assessment for each participating Brand Hotel, including The Standardx, is currently 4.5% of all eligible revenue generated at that hotel from members of the program who provide their World of Hyatt member number when booking. Alternatively, the assessment is 2.25% of eligible revenue when a guest is enrolled on-property in World of Hyatt for that enrolling stay.
The World of Hyatt program also has alliances with other companies, including the master licensee for Hyatt Residence Club and Hyatt Vacation Club, HyCard, Inc., American Airlines, and Headspace, Inc. While the Hyatt Group may allocate assessments for these programs at different rates, owners of Participating Hotels bear no cost from including these programs in the Loyalty Program. The Hyatt Group also has contractual arrangements with participating airlines where hotel guests may choose to receive airline miles instead of Loyalty Program points; in this case, the Participating Hotel must pay the actual cost of those miles that the airline charges to the Hyatt Group, and guests are not entitled to Loyalty Program points for that stay.