Hyatt to buy Standard International for up to US$335 million
HYATT Hotels agreed to buy Standard International, adding to its growing portfolio of lifestyle lodging brands in a deal that could be valued at as much as US$335 million.
Hyatt will pay a base price of US$150 million, getting brands including the Standard, Bunkhouse Hotels and Peri Hotels, according to a statement on Tuesday (Aug 20). The acquisition, which does not include any hotel real estate, encompasses 21 properties in places such as New York, London and Bangkok.
It also includes a pipeline of more than 30 new projects, with Hyatt agreeing to pay as much as an additional US$185 million over time as those developments enter its system.
Bloomberg reported last month that Hyatt was nearing a deal for Standard. The transaction continues Hyatt chief executive officer Mark Hoplamazian’s shift towards an asset-light business model. The company has agreed to sell properties including the Hyatt Regency Orlando, while acquiring brands such as Alila and Dream Hotels, which appeal to leisure travellers.
Hoplamazian said Hyatt was drawn to Standard because its hotels function as social destinations, with thriving restaurants and nightlife scenes that appeal to vacationers, business travellers and real estate investors.
“We have very deliberately focused on this area because it’s where hotel development interest lies,” Hoplamazian said. “The equation works better when you have a vibrant food and beverage suite that supports the profitability of the hotel.”
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Along with the new brand acquisition, Hyatt is creating a new lifestyle lodging group within the company, to be led by Amar Lalvani, executive chairman of Standard International.
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