CHICAGO AND NEW YORK CITY — Hyatt Hotels Corp. (NYSE: H) has agreed to acquire the brands and most of the affiliates of lifestyle hospitality company Standard International, parent company of The Standard and Bunkhouse Hotels brands. The transaction is anticipated to close later this year.
The acquired portfolio will be 100 percent asset-light and includes management, franchise and license contracts for 11 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 properties like Hotel Saint Cecilia in Austin, Texas; and Hotel San Cristóbal in Baja California, Mexico.
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.
The Standard hotels have attracted a loyal following among the most discerning lifestyle guests, says Mark Hoplamazian, president and CEO of Chicago-based 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.”
With this acquisition, Hyatt will form a new dedicated lifestyle group that will be headquartered in New York City and led by Amar Lalvani, Standard International’s executive chairman.
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.
“We waited a long time to find the right company with whom to join forces,” says Lalvani. “In choosing Hyatt, we tap into a powerful global infrastructure and loyal guest base.”
Hyatt says the acquisition will continue its evolution to a brand- and experience-driven company. Between 2017 and 2023, Hyatt quintupled the number of lifestyle rooms in its global portfolio through both organic growth and a series of acquisitions.
In addition to The Standard and Bunkhouse Hotels brands, New York City-based 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 debuts next month in the Soho neighborhood of New York City in time for New York Fashion Week.
Beyond its hotel brands, the portfolio includes restaurant and nightlife concepts, including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill and Jo’s Coffee. Rooftop venues include 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.
Thai property developer Sansiri PLC 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.
Moelis & Co. LLC served as financial advisor to Hyatt and Venable LLP acted as its legal advisor.
As of June 30, Hyatt’s portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents. Earlier this week, Hyatt sold the Hyatt Regency Orlando hotel for approximately $1 billion, but will continue to manage the property.
— Kristin Harlow