Worldwide: Hyatt has confirmed its plans to acquire the lifestyle company Standard International, parent company of The Standard and Bunkhouse Hotels brand, for up to $335 million.
The acquired portfolio will be 100 per cent asset-light and includes management, franchise and license contracts for 21 open hotels with approximately 2,000 rooms.
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.
In addition to The Standard and Bunkhouse Hotels brands, the portfolio also includes Peri Hotels and The StandardX, which debuted in Melbourne, Australia this August, and the upcoming luxury hotel brand The Manner which launches next month in Soho, New York. Restaurant and nightlife venues form part of the portfolio too.
Thai developer Sansiri PLC, which acquired a majority stake in Standard International in 2017, will continue to own several properties that will be managed or franchised under the acquired brands.
Overall, 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.
Upon closing, Hyatt will form a new dedicated lifestyle group headquartered in New York City, led by Standard International’s executive chairman Amar Lalvani. He will take on the new role of president and creative director of the group.
“We waited a long time to find the right company with whom to join forces,” said Lalvani. “In choosing Hyatt, we tap into a powerful global infrastructure and loyal guest base. I am very proud that our team has delivered on the potential we saw with The Standard and Bunkhouse Hotels and am honoured that Hyatt appreciates how special our brands, properties, and – most importantly – our people are.
“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.
Mark Hoplamazian, president and CEO of Hyatt, said: “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.
“These properties truly drive the zeitgeist, creating destinations unto themselves with celebrated and talked-about programming and events, such as the Met Gala afterparty. We are thrilled to welcome Standard International’s properties and team to the Hyatt family with the newly created lifestyle group and draw on their brilliance, creativity, culture and innovation,” he said.
The transaction is expected to close later this year.