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Mark Hoplamazian, '89, believes that growth results from strategy, not vice versa, and he'd prefer not to use the term "growth strategy" when discussing Hyatt's business plans.
For Hoplamazian, president and CEO of Hyatt Hotels Corporation, there's something about the phrase feels detached from the real driving force behind a company that operates more than 450 hotels in 46 countries.
Hospitality is a "people business," Hoplamazian said. The hotel's guests and associates are what drive the strategy. "Growth is the result of strategy, not the other way around," he said. "These aren't just 'units.' These are hotels where people work in communities where people live."
Hoplamazian spoke with 15 Chicago Booth students at Hyatt's downtown Chicago headquarters in May. The breakfast roundtable discussion, hosted by Hyatt and Booth's Career Services, stemmed from participation in Hyatt's MBA Trek, where Booth students met with the company's top leaders in human resources, finance, and marketing at Hyatt's corporate office. Hoplamazian, who was on a business trip at the time of the trek, invited the students back to Hyatt's offices to candidly discuss the principles and strategies that keep the Hyatt brand expanding, particularly in India, China, and Brazil.
Hoplamazian joined Hyatt as interim president in June 2006 after 17 years in private equity and overseeing companies for the Pritzker family. Hyatt was privately held by the Pritzker family before the company went public in 2009.
"People would ask me, 'Now that you're public, what's your strategy?'" Hoplamazian said, "Trying to develop a strategy after you go public is like closing the barn door after the horse is out. Don't think of growth as an end unto itself. Give me one example of a 'so-called' growth company that didn't eventually hit a wall."
Hyatt's plans for growth include building a new beachfront hotel in Rio de Janeiro, Brazil, and 14 Hyatt Place hotels in India's secondary cities - those headed for the metropolis status. When the upcoming Hyatt properties open, they will be, in most cases, the first hotels under a global brand in their respective secondary cities. Hyatt is pursuing similar expansions in China, where, Hoplamazian said, the equivalent of the US population is moving from rural outskirts to urban centers.
Such promising plans are a dramatic turnaround after a severe recession that Hoplamazian called the worst in the hospitality industry since the 1930s. Despite industry challenges, Hoplamazian said that Hyatt remains focused on fulfilling its mission of delivering authentic hospitality. The room décor may become more posh and the amenities more luxurious, he explained, but a competing hotel developer can just easily hire the same designers or spend more money on improvements.
"The only competitive advantage is service ability," Hoplamazian said.
That culture of service extends not only to Hyatt's guests, but also to the company's employees. Anil Harjani, '10, noticed it while a student in Booth's Evening MBA Program. Harjani joined Hyatt in 2009 and is now director of internal audit.
"The Hyatt culture is the driving force behind delivering superior service to our guests, but also supports how we collaborate and innovate amongst each other," he said. "The tone at the top reinforces this by having an open-door policy which encourages our employees to engage with senior leadership and share ideas. You simply can't beat the culture."
Receiving invitations from a company's C-suite is one of Booth's main advantages, said Bess Cades, a first-year student in Booth's Full-Time MBA program. "I want a job like his, to be CEO of a major corporation," Cades said. "These are unique opportunities to access people who are in those positions and have lessons to teach. You don't get this kind of access everywhere."
—Kadesha Thomas