Hyatt to acquire Standard International, creating a new lifestyle group – HOTELSMag.com

Hyatt Hotels Corp. has announced plans to buy Standard International, the parent company of The Standard and Bunkhouse Hotels brands, and its brands and most of its affiliates. Once the deal closes, Hyatt will pay a base price of $150 million, with an amount up to $185 million over time as it adds additional properties to its portfolio.

The operation is expected to close later this year, according to the permit.

The move will help Hyatt strengthen its position in the premium lifestyle space, building on its organic growth and track record that has increased the number of lifestyle rooms in the world’s leading hotel. Hyatt’s between 2017 and 2023.

The deal will see Hyatt create a new dedicated lifestyle club in New York City. The new group will consist of the Standard International group as well as members of the Hyatt group. Led by Amar Lalvani, executive chairman of Standard International, the lifestyle group will elevate Hyatt’s operational and integrity practices while taking the lead in creating experience, design, marketing , programs, social relations, restaurants, nightlife and entertainment.

Lalvani will assume the role of president and creative director of the new group and lead the integration of products, while ensuring and strengthening the integrity, innovation, creativity and growth of each brand.

The recorded portfolio will be fully asset-lighted and includes management, franchise and license agreements for 21 open-air hotels with approximately 2,000 rooms, including The Standard, London, The Standard, High Line and New York City, The Standard, Bangkok Mahanakhon and boutique hotels. such as Hotel Saint Cecilia in Austin, Texas and Hotel San Cristóbal in Baja California, Mexico.

Once the sale closes, the property will join World of Hyatt, Hyatt’s loyalty program.

Hyatt has been diversifying and expanding its offerings with a series of recent acquisitions. The company expanded its presence in the luxury sector by buying Mr & Mrs Smith for £53 million in April 2023. Earlier this year, Hyatt bought I and all hotels from Linder hotels AG, a German hotel of the family. company, with the aim of expanding new markets throughout Europe. In July, World of Hyatt formed an exclusive partnership with Under Canvas, an outdoor hospitality company, that enabled World of Hyatt members to access 13 Under Canvas resorts across the US.

In addition to The Standard and Bunkhouse Hotels brands, Standard International’s portfolio includes Peri Hotels and its two new additions, The StandardX (launched earlier this month in Melbourne) and The Manner (launching in September in Soho, New York). Standard International’s portfolio also includes restaurant and nightlife concepts.

When the deal closes, the sale will close the investment of Sansiri PLC, which acquired a majority position in Standard International in 2017 and has helped the company grow internationally. Sansiri will retain ownership of several properties, which will be managed or paid for under the purchased names.

“The team behind Standard International has created a unique portfolio of products and services that are redefining their status and have attracted a loyal following among lifestyle travelers over the past 25 years,” said Mark Hoplamazian, president. and CEO of Hyatt. “In fact, this property inspires so many people, creating spaces for them through shows and events that are celebrated and talked about, such as the Met Gala. We are delighted to welcome the property and the Standard International team to the family of Hyatt and the newly formed group of lifestyles and use their intelligence, innovation, culture and creativity.

The sale includes more than 30 projects with a signed agreement or Letter of Intent, including new properties scheduled to open in the next 12 months – The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit; along with Bunkhouse Hotels Saint Augustine and Hotel Daphne. Standard International also has residences under development in Miami, Lisbon, Phuket, Hua Hin and Mexico City; along with the completed Bunkhouse Buildings at the Hotel Saint Cecilia in Austin, Texas.

Before founding Standard International, Lalvani led the development of W Hotels. In 2010, he teamed up with André Balazs to create The Standard brand. In 2013, Lalvani founded Standard International and acquired The Standard brand from Balazs. He then acquired a majority stake in The Bunkhouse Group from its founder Liz Lambert and her partners. Lalvani helped transform both companies from founder-led to global brands by creating key assets.

“We waited a long time to find the right company to join. When we choose Hyatt, we tap into a strong global foundation and a loyal guest base,” said Lalvani. “We have a shared vision of the potential that lies ahead. I would be remiss not to thank Hyatt for taking this bold step forward and Sansiri who has been instrumental in supporting our efforts. “

Moelis & Company LLC acted as Hyatt’s financial advisor and Venable LLP as its legal advisor.