Hyatt’s CEO has fostered a ‘family’ culture for 20 years. Now he is relying on it.

(SeaPRwire) –   Mark Hoplamazian has led Hyatt Hotels for nearly twenty years. Having steered the company through the 2008 financial crisis and a pandemic that brought hotel occupancy to a standstill, the CEO noted during the Great Place to Work For All Summit in Las Vegas that the current climate feels distinct—less like a sudden, sharp crisis and more like a slow, wearing pressure.

“I would characterize it as unsettled, rather than purely negative,” Hoplamazian remarked. “We have seen a period marked by the categorization of individuals based on gender identity, sexual orientation, and other factors. This fosters significant tension, creates an ‘us versus them’ mentality, and generates a sense of unease.”

For Hoplamazian, the remedy for this instability remains what it has always been: corporate culture. Hyatt recently secured its 13th consecutive appearance on ‘s list of the 100 Best Companies to Work For. According to Hoplamazian, these achievements are not coincidental; they represent the company’s foundational operating system.

“We are an organization that relies on and cultivates emotional connection,” he explained. “It is not transactional.” He added that at Hyatt, “We do not operate in a transactional environment.”

Culture that runs the company

This philosophy stems from an early realization in his tenure, when he asked teams from various hotels why they chose to stay. With the average tenure of a Hyatt general manager exceeding 25 years, the consensus was reached in a single word: care.

“They felt a sense of being cared for, and they found fulfillment in caring for others,” Hoplamazian told Great Place to Work CEO Michael C. Bush. In the hospitality sector, he noted, there is frequent talk of service and serving others. “However, the crucial distinction is empathy. You must begin with empathy to truly understand an individual’s needs.”

The CEO who asked his kids for feedback

He distilled this into a formula: empathy plus action equals care. This framework was influenced by a personal realization that hit closer to home than any corporate meeting. After receiving underwhelming results on an empathy assessment, Hoplamazian initially dismissed them. However, after consulting his children, he was humbled. They pointed out that during their morning school commutes, he was constantly preoccupied with his phone. “Dad, the light is green, time to go,” they would say. “Afterward, I realized I needed to pay attention to my behavior and wake up. That was a turning point for me.”

This commitment to accountability is the same standard he expects from Hyatt’s leadership. They view themselves as a family, yet they maintain the same level of directness his children showed him. “Some argue that if you are a family, you cannot make tough decisions or provide direct feedback,” he told . “I would argue the opposite: providing that feedback is an act of kindness.” He emphasized that warmth is not the antithesis of accountability; rather, it is what makes accountability possible.

The war’s toll on travel

The business rationale for this culture becomes even more apparent during turbulent times, and currently, disruption is coming from multiple fronts. The war in the Middle East has dealt a swift and tangible blow to the hospitality industry. In March, the World Travel & Tourism Council estimated that the conflict was costing the global travel sector at least $600 million daily in lost international visitor spending. Hyatt, which maintains a significant presence in the Middle East, felt the impact immediately.

“There has certainly been a short-term impact,” Hoplamazian acknowledged. “The hubs in the Middle East—Dubai, Abu Dhabi, and Doha—are major crossroads for travelers moving between Asia and Europe. It is difficult to predict how long it will take for this to subside to the point where people no longer hesitate before booking a flight to a place like Dubai. It depends entirely on how much longer this conflict continues.”

Regarding the broader impact on regional tourism, Hoplamazian described it as a “major hit,” noting that the immediate consequences are significant because of the proximity to a conflict zone.

The world wants to move

Despite this, he remains optimistic, citing an unexpected surge in travel to China, a thriving Japanese market, and resilient U.S. consumer spending—partly because of Hyatt’s target demographic. “The unfortunate reality is that we are living in a K-shaped economy,” he said, “and we [Hyatt] primarily serve the upper portion of that K.” However, he argued that a more structural shift is occurring, suggesting that travel has moved down the Maslow hierarchy of needs. “People have a genuine desire to travel… It is not quite on the level of food and shelter, but it is very close.”

Hoplamazian returned to the “human connection factor,” asserting that his industry is trending in only one direction over the long term. “There is a human desire to explore and discover. As soon as people have more discretionary income, that is how they choose to spend it.” Describing the preference for experiences over material goods as a “major mega-theme” of the 2020s, he predicted that Hyatt’s long-term investment in the human element will continue to yield results. “Businesses may be more reactive to immediate pressures and cut back in the short term, but in the medium to long term, this is a phenomenal industry. The world wants to travel. The world is becoming more connected. That is not going to change.”