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Hyatt is now partly owned by the Walton family of
Wal-Mart. I do not know whether that is good news or bad news. The
Waltons are one of the richest families on earth. Their Wal-Mart is
the world’s largest company and largest retailer. It is known for
low prices. Generally, shoppers get good value for their money
though at rival Costco, you get better quality products.
Hyatt is not known for low
prices. It has exorbitant room rates, at least the one at Arlington,
Virginia. Guests don’t get good value for their money. To say that
this Hyatt offers luxury for good money is really stretching the
imagination. I have stayed in other Hyatt hotels before—in Osaka,
Sydney, Hong Kong and, of course, Joe Mari Chan’s Hyatt in Manila.
They are different from the Hyatt Arlington.
On August 29, I checked into
Hyatt in Arlington, Virginia. I was charged $219 for the first
night. The rate didn’t include breakfast. Not for one. Not for
two. The room had a king bed that was flabby. The room is so small
it makes you claustrophobic. It is cleaned only once a day and the
bed is not made up in the evening. It didn’t have any free
toothpaste, toothbrush, slippers, bathrobe, newspapers or safety
deposit box. The only thing free is 24/7 connection to the Internet
and, yes, a coffee maker with sachets of coffee and tea. The things
that in other places you would expect to get with your $219, you
don’t get at the Hyatt Arlington. There were two bottles of water,
each priced at $4. I asked for toothpaste and toothbrush. I was told
to get it myself at the front desk. A few of the staff were not warm
at all.
I checked Hilton at Ballston,
about four Metro stops from Roslyn, the Metro stop right across the
Hyatt Arlington. Hilton offered $159 for king bed and breakfast for
two, free. Nearby Westin Ballston quoted $219, taxes included, but
its people were definitely much warmer and more gracious and the
property is much newer.
On the Internet, Hyatt Arlington
offered a summer getaway package of $89 per night for a king bed or
two double beds with free breakfast for two, Friday to Sunday. The
rate is $169 on weekdays. Staying at the Hyatt Arlington on weekends
can be a hassle. You go down to the Mezza Restaurant on the second
floor and you find the line of coupon diners is so long it makes you
feel you are checking in with Southwest for a flight.
According to reports on August
30, the billionaire Pritzker family of Chicago has sold a $1-billion
stake in their Global Hyatt hotel chain to Goldman Sachs Capital
Partners and Madrone Capital Partners, the investment arm of Rob
Walton, the chairman of Wal-Mart.
Hyatt said Goldman and Madrone
had acquired a “minority interest” in the group. The Hyatt group
said the deal would provide liquidity to the Pritzker family
interests that own Hyatt.
Hyatt is one of the world’s
largest privately owned hotel groups. It is restructuring its
operations and plans to expand. The hotel chain is said to be valued
at $20 billion, $5 billion less than the $25 billion paid for Hilton
by the Blackstone group.
The Pritzker family that owns
Hyatt has had family squabbles that in some cases have ended up in
suits among the heirs. The family thus decided to cut up the
property and distribute funds among family members over a period of
time.
“Consistent with previously
announced plans, we are also in the process of restructuring our
family’s holdings,” said Hyatt Chairman Tom Pritzker. “As part
of our strategic planning we considered opening up our shareholder
base to an investor or investors who shared our vision.”
Goldman Sachs and (Rob)
Walton’s family interests “emerged as possessing the key
attributes we sought,” Tom said.
For his part, Walton said Hyatt
had “all of the ingredients necessary for long-term growth: a
capable and dedicated group of associates, solid capital base,
well-respected brands and a global footprint including a strong
presence in the highest growth areas in the world.”
Richard A. Friedman, chairman of
Goldman Sachs Capital Partners, said Hyatt had “extraordinary
growth prospects.” Hyatt has 65 full service hotels in its
development pipeline, including 16 in China, the company said.
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