Hyatt to Buy Lifestyle Hotel Group Standard International for $335 Million

Change Me

The Standard is part of a group of hotels that Hyatt and all the major groups covet. A Hyatt executive once said that increasing networking and lifestyle can create a “network effect,” driving loyalty program growth and engagement.

Sean O’Neill

Hyatt Hotels said on Tuesday that it plans to buy Standard International, the owner of 21 hotels that open across five categories of guests, including luxury brand The Standard.

Hyatt will pay a base price of $150 million, with an amount up to $185 million over time as additional properties enter the portfolio. Standard International has more than 30 projects with a signed agreement or letter of intent.

The companies expect the deal to close later this year, according to the filing.

Hyatt has confirmed that it will acquire all five brands managed by Standard International: The Standard, The Peri Hotel, Bunkhouse, The StandardX, and The Manner.

Hyatt will not receive physical property. It only buys management contracts, franchises and licenses for hotels with up to 2,000 rooms. The popular residential area is Standard International’s latest focus, and the group is already selling homes in Midtown Miami, Lisbon, Thailand and Portugal. Hyatt will take that too.

As of 2017, Sansiri, a Thailand-based luxury real estate developer, has been the majority shareholder of Standard International.

“The sale will cap a successful investment for Sansiri, who acquired a majority position in Standard International in 2017 and helped the company grow internationally,” Hyatt said in a release. “Sansiri will continue to have several properties that will be managed or sold under the acquired names.”

“The Internet Effect” On Lifestyle Hotels

The Standard and related brands are part of the hotel group that Hyatt and all major hotel groups are increasingly coveting. While a typical hotel is just a place to sleep, “luxury lifestyle” hotels are boutique-like places where the guest room looks like a modern art gallery and the rooftop bar serves drinks. have names you cannot pronounce.

In the past six years, Hyatt has quadrupled the number of lifestyle rooms, and Standard International will increase that level further.

By adding assets, there is a “network effect.’ When the operation has many hotels with Instagram, healthy people want to stay there and read directly.

Hyatt’s New Lifestyle Group

Hyatt said it will create a “new dedicated lifestyle group” led by Standard International Executive Chairman Amar Lalvani. In the new role of president and creative director of the lifestyle group, Lavani will be responsible for sharing best practices across brands while maintaining each brand’s identity.

Before co-founding Standard International with André Balazs, Lavani led the global development of W Hotels.

Moelis acted as Hyatt’s financial advisor on the deal.

NOTE: This article originally stated that Hilton quadrupled its guest rooms between 2017 and 2023, not twice.

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