HYATT TO ACQUIRE STANDARD INTERNATIONAL AND ITS ICONIC HOTEL BRANDS, THE STANDARD AND BUNKHOUSE HOTELS, EXPANDING ITS LEADING POSITION IN LIFESTYLE HOSPITALITY
Formation of new lifestyle group to combine best-in-class lifestyle brand leadership and talent with Hyatt’s global distribution network and award-winning World of Hyatt loyalty program. |
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HYATT TO ACQUIRE STANDARD INTERNATIONAL AND ITS ICONIC HOTEL BRANDS, THE STANDARD AND BUNKHOUSE HOTELS, EXPANDING ITS LEADING POSITION IN LIFESTYLE HOSPITALITY
Formation of new lifestyle group to combine best-in-class lifestyle brand leadership and talent with Hyatt’s global distribution network and award-winning World of Hyatt loyalty program. |
Category: Worldwide - Industry economy
- New brands / Affiliations
This is a press release selected by our editorial committee and published online for free on 2024-08-22
Hyatt Hotels Corporation (NYSE: H) today announced theplanned acquisitionof the brands and most of the affiliates of pioneering lifestyle companyStandard International, parent company of The Standard and Bunkhouse Hotels brands.
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 closingconditions.
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 new lifestyle group will be made up of the talented Standard International team as well as Hyatt colleagues – more details about the lifestyle group will be shared following the closing of the transaction.
The planned acquisition will continue Hyatt’s evolution to a brand- and experience-driven company.
The acquired portfolio will be 100 percent 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.
“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,” said Mark Hoplamazian, President and Chief Executive Officer, Hyatt.
“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.”
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. Thereafter, Lalvani spearheaded the transitions of both companies from founder-led start-ups to globally recognized brands through the development of landmark properties.
“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 honored 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.”
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.
Beyond its hotel brands, the portfolio includes world-class restaurant and nightlife concepts including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill, Jo’s Coffee as well as iconic rooftop venues including Le Bain, Decimo, Sweeties, UP, Ojo and Sky Beach.
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. Standard International has also developed a robust residential business with Standard Residences under development in Miami, Lisbon, Phuket, Hua Hin and Mexico City as well as completed Bunkhouse Residences at the Hotel Saint Cecilia in Austin.
Upon closing, 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. Stabilized 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.
In connection with the transaction, Moelis & Company LLC served as financial advisor to Hyatt and Venable LLP acted as its legal advisor.
The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of June 30, 2024, the Company’s portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents. The Company's offering includes brands in theTimeless Collection, includingPark Hyatt,Grand Hyatt,Hyatt Regency,Hyatt,Hyatt Vacation Club,Hyatt Place,Hyatt House,Hyatt Studios, andUrCove; theBoundless Collection, includingMiraval,Alila,Andaz,Thompson Hotels,Dream Hotels,Hyatt Centric, andCaption by Hyatt; theIndependent Collection, includingThe Unbound Collection by Hyatt,Destination by Hyatt, andJdV by Hyatt; and theInclusive Collection, includingImpression by Secrets,Hyatt Ziva,Hyatt Zilara,Zoëtry Wellness & Spa Resorts,Secrets Resorts & Spas,Breathless Resorts & Spas,Dreams Resorts & Spas,Hyatt Vivid Hotels & Resorts,Alua Hotels & Resorts, andSunscape Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt loyalty program, ALG Vacations, Mr & Mrs Smith, Unlimited Vacation Club, Amstar DMC destination management services, and Trisept Solutions technology services. For more information, please visitwww.hyatt.com.
About Standard International
Standard International is the parent company of The Standard hotels. Created in 1999, The Standard hotels are known for their pioneering design, taste-making clientele, and unrelenting un-standard-ness. Launched originally in Hollywood, The Standard has now opened properties in marquee locations across the globe including in New York, Miami, London, the Maldives, Hua Hin, Ibiza, Bangkok and Melbourne. Standard hotels in Singapore, Lisbon, Brussels, Pattaya and Mexico are under development. The goal of every Standard project—be it a city hotel, a seaside resort, or a rooftop bar—is to defy convention, up the aesthetic stakes, and deliver an experience that only The Standard can. The Standard’s unconventional and playful sensibility combined with careful consideration of design and service details, have established its reputation as a pioneer in hospitality, travel, dining, and nightlife. Standard International also owns a majority stake in the Bunkhouse Hotels, The Peri Hotels, The StandardX and will debut its newest luxury brand, The Manner, in 2024. Standard International has also recently entered the branded residences space with locations opening in Miami, Mexico City, Lisbon, Phuket and Hua Hin.
 Standard London
Photo credit © Courtesy of The Standard
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