Hyatt Acquires Standard International, Enhancing its Position in Lifestyle Hospitality

Strategic Insights -

Hyatt Hotels Corporation has announced the planned acquisition of Standard International, parent company of The Standard and Bunkhouse Hotels brands. This move positions Hyatt as a leader in the lifestyle hospitality industry, leveraging its global infrastructure and loyal guest base to further develop the acquired brands. The transaction will enhance Hyatt's evolution into a brand- and experience-driven company, with the new lifestyle group set to be headquartered in New York City.

Key Takeaways:

  • The acquisition will add 21 open hotels with approximately 2,000 rooms to Hyatt's portfolio, including The Standard, London, and The Standard, High Line in New York City.
  • The new lifestyle group will be led by Standard International's Executive Chairman Amar Lalvani, who will oversee the integration of the brands and assume distinct leadership across key functions.
  • The acquisition includes more than 30 projects with a signed agreement or letter of intent, including new properties expected to open over the next 12 months.
  • Hyatt will pay a base purchase price of $150 million, with up to an additional $185 million over time as additional properties enter the portfolio.
  • Stabilized fees associated with the base purchase price are anticipated to be approximately $17 million, with additional stabilized fees of up to approximately $30 million if the contingent purchase price is paid.
  • The acquisition is subject to customary closing conditions and is expected to close later this year.
  • Standard International has developed a robust residential business with Standard Residences under development in various locations, including Miami, Lisbon, and Phuket.

Statistics:

  • 21 open hotels with approximately 2,000 rooms will be added to Hyatt's portfolio as a result of the acquisition.
  • The new lifestyle group will be headquartered in New York City and will be led by Standard International's Executive Chairman Amar Lalvani.
  • 30-40% of the contingent purchase price is expected to be paid over a 5-year period.
  • The acquisition will increase Hyatt's portfolio to over 1,370 hotels and all-inclusive properties in 78 countries across six continents.

Sources:

  • "Hyatt Hotels Corporation Issued the Following News Release" (Aug. 20)
  • "About Hyatt Hotels Corporation"
  • "About Standard International"
  • "Hyatt Hotels Corporation, Subsidiaries and Affiliates"