Yahoo Finance Peloton to Put Bikes in 800 Hyatt Hotels in Turnaround Effort
(Bloomberg) -- Peloton Interactive Inc. announced an agreement to outfit Hyatt Hotels Corp. properties with its equipment, marking the latest attempt to revive growth at the struggling fitness company.
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More than 800 Hyatt locations in the US, Canada, UK, Germany, Austria and Australia will get Peloton bikes as part of the pact, the companies said Wednesday. As an added perk, members of Hyatt’s rewards program will gain extra points for working out.
The announcement comes a day before Peloton announces its third-quarter earnings results, which are expected to reflect continued sales declines. Wall Street is estimating a revenue drop of about 4% and another money-losing quarter.
The Hyatt partnership is the latest deal under Chief Executive Officer Barry McCarthy, who has previously reached agreements with Lululemon Athletica Inc., Amazon.com Inc. and Dick’s Sporting Goods Inc. to widen distribution. In 2022, Peloton agreed to put its equipment in Hilton’s 5,400 US hotels in a similar arrangement to the Hyatt partnership.
Peloton shares have lost more than 90% of their value since the early days of the Covid pandemic, when the company’s bikes were in hot demand. McCarthy’s comeback efforts have included management shake-ups, layoffs and outsourcing operations — as well as a revamped app — but the turnaround is still a work in progress.
As part of the Hyatt agreement, some US hotels will also get Peloton rowing machines, and 400 locations will feature the company’s fitness content on the TVs in guests’ rooms. Financial terms of the arrangement weren’t disclosed.
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