During a conference call with investors to discuss Hyatt’s first quarter earnings,

Hyatt Hotels CEO Mark Hoplamazian said the following about Hyatt’s experiences with Onefinestay and Oasis: “When you’re dealing with high-end properties and you try to maintain a level of quality on a consistent basis, the delivery model is expensive and hard to get to a point where you are receiving, from a financial return perspective, a sustainable model.”

He also noted the “negative impact” of stricter regulatory environments in a number of markets as a challenge that will continue to “persist.”