Global hospitality empire Hyatt Hotels Corp. has reached a deal to purchase New York-based lifestyle hotel brand operator Standard International, adding several brands and over 20 hotels to its portfolio.
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Hyatt is set to take over Standard’s brands and most of its affiliates, the Chicago-based company announced in a press release Tuesday. The sale includes the management and license contracts for 21 hotels totaling 2,000 rooms in cities like London, New York City, Bangkok and Baja California, Mexico.
After the deal closes, which is expected later this year, those hotels will be integrated into World of Hyatt.
The sale price could reach up to $335M: Hyatt agreed to pay a base price of $150M, plus an additional $185M as hotels in the pipeline enter the portfolio.
Beyond Standard’s hotel brands — The Standard, Bunkhouse Hotels, Peri Hotels, The StandardX and The Manner — Hyatt is acquiring the brand’s restaurants, nightlife concepts, rooftop venues, residential portfolio and pipeline.
The acquisition includes hotels expected to deliver over the next year: The Standard, Pattaya Na Jomtien; The StandardX, Bangkok Phra Arthit and Bunkhouse Hotels Saint Augustine and Hotel Daphne.
“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,” Hyatt CEO and President Mark Hoplamazian said in a statement.
Bangkok-based Sansiri will get a big chunk of the payout. The firm purchased a 35% stake in Standard International in 2017.
With the acquisition of Standard and its team, Hyatt plans to launch a new dedicated lifestyle group headquartered in New York City, merging Standard International’s team with Hyatt employees.
The new business will be led by Standard International Executive Chairman Amar Lalvani, who will become the new lifestyle brand’s president and creative director. More details will be announced after the acquisition closes, according to Hyatt.
“We waited a long time to find the right company with whom to join forces,” Lalvani said in the release. “In choosing Hyatt, we tap into a powerful global infrastructure and loyal guest base. … We have a shared vision for the enormous potential that still lies ahead.”
As of the end of Q2, Hyatt had more than 1,350 properties in 78 countries across six continents. For the acquisition, Moelis & Company was Hyatt’s financial advisor and Venable was its legal advisor.
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