Sign in Subscribe
Hospitality industry

Hyatt Expands Position in Lifestyle Hospitality with Acquisition of Standard International Brands

Strategic Insights

— 1 min read

Hyatt Hotels Corp. is set to acquire lifestyle brand Standard International, parent company of The Standard and Bunkhouse Hotels brands, in a deal that will enhance its position in the industry's lifestyle space. The base purchase price for the acquisition is $150 million, with up to an additional $185 million paid over time as more properties are added to the portfolio. This move builds on Hyatt's organic growth and a series of acquisitions that quintupled the number of lifestyle rooms in its global portfolio between 2017 and 2023.

Key Takeaways:

  • Hyatt will acquire Standard International, parent company of The Standard and Bunkhouse Hotels brands, for a base purchase price of $150 million with an additional $185 million paid over time.
  • The acquired portfolio will be 100% asset-light and includes management, franchise, and license contracts for 21 open hotels with approximately 2,000 rooms.
  • This acquisition will form a new dedicated lifestyle group that will be headquartered in New York City, and will be a key part of Hyatt's evolution to a brand- and experience-driven company.
  • Moelis & Company LLC served as financial advisor to Hyatt, and Venable LLP acted as its legal advisor.
  • The acquisition is a result of Sansiri PLC's successful investment in Standard International, which acquired a majority position in 2017 and facilitated the company's international expansion.

Statistics:

  • Base purchase price: $150 million
  • Additional purchase price: up to $185 million
  • Number of properties: 21 open hotels
  • Number of rooms: approximately 2,000
  • Period of acquisition: $150 million and up to $185 million paid over time
  • Year of acquisition agreement: 2024
  • Year of purchase price quintupled the number of lifestyle rooms: 2018 (quintupled between 2017-2023)

Sources:

  • M2 EQUITYBITES-August 27, 2024-Hyatt to Acquire Standard International Brands to Expand Position in Lifestyle Hospitality
  • C) 2024 M2 COMMUNICATIONS http://www.m2.co.uk

Read more