Hughes, who is currently the House majority whip, beat out House Majority Leader Brad Dee, and former House Speaker Mel Brown in the vote among his colleagues to replace House Speaker Becky Lockhart, who is retiring.
The Republican caucus held the vote Thursday in a closed-door meeting. The vote tallies were not announced.
Rep. Jim Dunnigan, R-Taylorsville, who recently led the investigation of former Attorney General John Swallow, was selected by the caucus as the new House majority leader. Rep. Francis Gibson, R-Mapleton, was elected House majority whip, and Rep. Brad Wilson, R-Kaysville, was selected as assistant whip.
Senate President Wayne Niederhauser, R-Sandy, who was re-elected Thursday to his leadership post, said he got to know Hughes when Niederhauser first ran for the Senate in 2006, since their districts overlap.
"We became instant friends, and I have appreciated him over the years," Niederhauser said. "He's an energetic and dynamic person."
Republican senators retained the rest of their leadership team, with Senate Majority Leader Ralph Okerlund, R-Monroe, running unopposed. Sen. Stuart Adams, R-Layton, won re-election as majority whip and Sen. Pete Knudson, R-Brigham City, was chosen once again as assistant whip.
Hughes served as chairman of the board of the Utah Transit Authority during several tumultuous years for the agency until his he stepped down in September.
One of the top priorities in both the House and Senate will be digesting competing proposals on whether to expand Medicaid to cover more low-income Utahns. Gov. Gary Herbert has reached an agreement in principle with the U.S. Department of Health and Human Services to cover the poorest Utahns and subsidize insurance for those up to 138 percent of the poverty level.
But Republican legislators in both the House and Senate are wary of the long-term cost of the proposal.
Hughes said he plans to draw on the expertise of Dunnigan, who owns an insurance agency, and Gibson, who is a health care administrator, as well as four physicians in the Legislature to inform the decision-making.
"You're going to see that expertise, that citizen Legislature and the areas they understand," Hughes said. "We're really going to drill down on [Medicaid] with the guiding principle being that we do right by our constituents."
In 2013, Hughes sponsored legislation expanding campaign finance reporting, requiring nonprofits and corporations to disclose money spent independently on races in response to so-called "dark money" that was used to oust Rep. Brad Daw.
He led the creation of the Prison Relocation and Development Authority in 2011, sponsoring legislation that brought about the commission to study the relocation of the Utah State Prison in Draper, which is in his district. The group is currently considering options for the construction of a new prison.
He sponsored legislation in 2009 that did away with Utah's requirements that bars and taverns be private clubs and required establishments to scan patrons' identification.