Well this is interesting. Hyatt has announced its latest initiative to expand in the luxury sector, and it’s a bit untraditional.Hyatt acquiring Mr. & Mrs. Smith for £53 millionHyatt will be acquiring the Mr. & Mrs. Smith platform for an enterprise value of£53 million in cash consideration. The transaction is expected to close in the second quarter of 2023, subject to customary closing conditions.For those not familiar with Mr. & Mrs. Smith, the company describes itself as a “travel club and boutique hotel specialist,” and is affiliated with over 1,500 hotels, and counting. The way I view it, Mr. & Mrs. Smith is essentially a luxury travel agency and marketing agency of sorts.Mr. & Mrs. Smith doesn’t manage any hotels, but rather gets a commission when people book through the company. In turn, Mr. & Mrs. Smith offers some perks to those who book through the company. Think of it as being along the lines of Leading Hotels of the World (LHW) and Small Luxury Hotels of the World (SLH) — these companies also don’t manage hotels, but rather market a variety of properties.Arguably Mr. & Mrs. Smith has even fewer requirements than LHW and SLH when it comes to exclusivity and standards. You’ll find that many Mr. & Mrs. Smith properties also belong to other hotel groups or marketing organizations, and Mr. & Mrs. Smith markets properties belonging to many of the world’s best hotel brands.Hyatt believes that this acquisition will enhance Hyatt’s position in the luxury market, and further strengthen Hyatt’s distribution capabilities, especially in Europe. Hyatt hopes that this will help the brand forge relations with additional hotel owners, and more than one million Mr. & Mrs. Smith members.Following the closing of this deal, Hyatt plans to unveil direct booking access to properties within the Mr. & Mrs. Smith portfolio through Hyatt’s distribution channels. Hyatt states that it’s “exploring ways to enable World of Hyatt members to earn and redeem points across eligible hotels in the Mr. & Mrs. Smith collection.”Bill & Coo Mykonos belongs to Mr. & Mrs. SmithWhat does this deal mean for World of Hyatt members?Mr. & Mrs. Smith doesn’t own or manage any hotels, but rather is just essentially a marketing organization. So what does this really mean for World of Hyatt members? While Hyatt hasn’t yet announced details, here’s my read on the situation:I suspect World of Hyatt members will be able to earn points for stays at Mr. & Mrs. Smith affiliated properties, as is the case with Hyatt’s partnership with Small Luxury Hotels of the WorldI suspect World of Hyatt members will be able to redeem points for stays at Mr. & Mrs. Smith affiliated properties, but likely at a fixed point per value amount, since Hyatt will be paying out of pocket for these staysI wouldn’t expect much in the way of elite benefits for stays at Mr. & Mrs. Smith properties, aside from the special amenities that the company currently offers guestsLet me again emphasize that while this will grow the portfolio of hotels that Hyatt likely markets, it won’t grow the actual portfolio that Hyatt manages. I do feel like part of Hyatt’s motivation here is to convince some Mr. & Mrs. Smith affiliated properties to join one of Hyatt’s brands, though it remains to be seen how successful Hyatt will be with that.I should also note that Mr. & Mrs. Smith currently has a partnership with IHG One Rewards, so I think it’s safe to say that partnership is ending.I think this is a positive development, but definitely manage your expectations here. It’s great to think that 1,500+ luxury hotels will now in some way be associated with Hyatt, but don’t expect that points redemptions will be a great deal, that you’ll get your standard elite perks, etc. While Hyatt is acquiring Mr. & Mrs. Smith, that doesn’t mean a whole lot to the 1,500+ hotels affiliated with the company, necessarily, aside from a new distribution platform.Matakauri Lodge Queenstown belongs to Mr. & Mrs. SmithBottom lineHyatt is acquiring Mr & Mrs. Smith, which is essentially a luxury travel agency. None of the 1,500+ hotels will directly join Hyatt’s portfolio, though World of Hyatt members will likely eventually be able to earn and redeem points at some or all of these hotels.There could be some cool opportunities here to be rewarded for stays at independent luxury properties, or even to redeem points for them, but I’d recommend managing your expectations.What do you make of Hyatt acquiring Mr. & Mrs. Smith?