Hyatt Hotels Acquire Standard International
Chicago-based Hyatt Hotels Corporation has announced the acquisition of the brands and most of the affiliates of pioneering lifestyle company Standard International, parent company of The Standard and Bunkhouse Hotels brands.
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. Stabilised fees associated with the base purchase price are anticipated to be approximately $17 million and, to the extent the contingent purchase price is paid, additional stabilized fees are anticipated to be up to approximately $30 million.
This move enhances Hyatt’s position as the leader in the industry’s premier lifestyle space, building on both its organic growth and a series of acquisitions that quintupled the number of lifestyle rooms in Hyatt’s global portfolio between 2017 and 2023. The transaction is anticipated to close later this year, subject to customary closing conditions.
With this transaction, Hyatt will form a new dedicated lifestyle group that will be headquartered in New York City.
Led by Standard International’s Executive Chairman Amar Lalvani, the lifestyle group will leverage Hyatt’s best-in-class operational and loyalty infrastructure while assuming distinct leadership across key functions including experience creation, design, marketing, programming, public relations, restaurants, nightlife and entertainment.
The planned acquisition will continue Hyatt’s evolution to a brand- and experience-driven company and the acquired portfolio will be 100% asset-light and includes management, franchise and license contracts for 21 open hotels with approximately 2,000 rooms, including The Standard, London, The Standard, High Line in New York City, The Standard, Bangkok Mahanakhon and boutique treasures like Hotel Saint Cecilia in Austin, Texas and Hotel San Cristóbal in Baja California, Mexico.
Following the closing of the transaction, Hyatt plans to integrate these hotels into World of Hyatt,
bringing this portfolio of celebrated lifestyle properties to the program’s 48 million loyalty members.
Upon closing, the sale will cap a successful investment for Sansiri PLC, which acquired a majority position in Standard International in 2017 and facilitated the company’s international expansion. Sansiri will continue to own several properties that will be managed or franchised under the acquired brands.
Award Winning Portfolio
Hyatt’s President and CEO Mark Hoplamazian said that the team behind Standard International has created a unique and award-winning portfolio of brands and properties that turn the status quo on its head and have attracted a loyal following among the most discerning lifestyle guests for the past 25 years.
Upon closing, Lalvani will take on the role of President & Creative Director of the lifestyle group, overseeing the integration of the brands to be housed within the group while ensuring and enhancing the integrity, innovation, creativity and growth of each individual lifestyle brand.
Lalvani led the global development of W Hotels and then in 2010 partnered with André Balazs on The Standard brand. In 2013, Lalvani formed Standard International and acquired The Standard brand from Balazs and followed that with an acquisition of a majority stake in The Bunkhouse Group from its founder Liz Lambert and her partners.
Lalvani said that they waited a long time to find the right company with whom to join forces and in choosing Hyatt, they were tapping into a powerful global infrastructure and loyal guest base.
“We have a shared vision for the enormous potential that still lies ahead. I would be remiss not to express my gratitude to Hyatt for taking this bold step forward and to Sansiri who has been instrumental in supporting our efforts,” he added.
In addition to The Standard and Bunkhouse Hotels brands, Standard International’s brand portfolio includes Peri Hotels and its two newest additions, The StandardX, which launched this month in Melbourne, Australia, and The Manner, which launches next month in Soho, New York in time for New York Fashion Week.
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: The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, as well as Bunkhouse Hotels Saint Augustine and Hotel Daphne.
