Hyatt Hotels Corporation is set to acquire lifestyle hospitality company Standard International, including The Standard and Bunkhouse Hotels brands, in a deal worth up to US$335 million.
Following the planned acquisition, Hyatt intends to form a dedicated lifestyle group, headquartered in New York City, led by Standard International’s Executive Chairman Amar Lalvani as President and Creative Director, and made up of Standard International and Hyatt colleagues.
With a series of acquisitions that quintupled Hyatt’s number of lifestyle rooms globally between 2017 and 2023, coupled with the company’s organic growth, Hyatt is positioning itself as a leader in premier lifestyle hotels.
The asset-light deal 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, Hotel Saint Cecilia in Austin, Texas and Hotel San Cristóbal in Baja California, Mexico.
“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 Hyatt President and Chief Executive Officer, Mark Hoplamazian.
“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.”
The new lifestyle group will leverage Hyatt’s s operational and loyalty infrastructure with these hotels integrated into the World of Hyatt program, which boasts 48 million loyalty members worldwide.
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, with the deal expected to close later this year.
It caps a successful investment for Sansiri PLC, which acquired a majority position in Standard International in 2017 and will continue to own several properties that will be managed or franchised under the acquired brands.
After leading the global development of W Hotels, Amar Lalvani partnered with André Balazs on The Standard brand in 2010, and in 2013 acquired the brand from Balazs as well as a majority stake in The Bunkhouse Group from its founder Liz Lambert and her partners, forming Standard International.
In the last 11 years since, Lalvani has grown both companies to globally recognised 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, The StandardX, which launched in Melbourne earlier this month, and The Manner, which launches in Soho, New York, next month.
The portfolio also includes restaurant and nightlife concepts and 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.
The acquisition includes more than 30 projects with new properties to open over the next 12 months including The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, as well as Bunkhouse Hotels Saint Augustine and Hotel Daphne.