In a move poised to reshape the landscape of luxury lifestyle hospitality, Hyatt Hotels Corporation has announced its planned acquisition of Standard International, the innovative parent company behind the iconic The Standard and Bunkhouse Hotels brands. This strategic acquisition is set to solidify Hyatt’s dominant position in the lifestyle hospitality sector, further expanding its global portfolio and reinforcing its reputation as a leader in the industry. The transaction is expected to close later this year, pending standard regulatory approvals.

A New Era in Lifestyle Hospitality

Hyatt’s acquisition of Standard International represents more than just a business transaction; it signals the formation of a new dedicated lifestyle group that will operate from New York City. This group will be spearheaded by Amar Lalvani, the current Executive Chairman of Standard International, who is slated to become President & Creative Director of the new entity. Lalvani’s leadership, coupled with Hyatt’s extensive resources and operational prowess, promises to infuse fresh energy and creativity into the brands while ensuring a seamless integration into Hyatt’s existing portfolio.

Under Lalvani’s guidance, the new lifestyle group will focus on curating exceptional experiences, innovative design, and dynamic marketing strategies. This approach aims to capitalize on Hyatt’s award-winning World of Hyatt loyalty program, which boasts 48 million members and provides these lifestyle properties with unparalleled access to a global customer base. Integrating The Standard and Bunkhouse Hotels into this program will undoubtedly elevate the guest experience and expand the reach of these unique brands.

A Portfolio of Iconic Properties

The acquisition includes management, franchise, and license agreements for 21 open hotels comprising approximately 2,000 rooms across various global locations. Notable properties include The Standard, London, The Standard, High Line in New York City, and Bangkok Mahanakhon, each of which has set new benchmarks in the hospitality industry for creativity, culture, and guest experience.

In addition to these flagship properties, boutique treasures like Hotel Saint Cecilia in Austin, Texas, and Hotel San Cristóbal in Baja California, Mexico, will join Hyatt’s portfolio. These hotels are celebrated for their distinctive design, personalized service, and ability to create unforgettable guest experiences. Post-acquisition, these properties will be integrated into the World of Hyatt, offering members access to various lifestyle destinations.

A Transformative Investment

This acquisition also marks the culmination of a successful investment for Sansiri PLC, which acquired a majority stake in Standard International in 2017. Sansiri played a pivotal role in the company’s international expansion, a strategy that significantly increased the global footprint of The Standard and Bunkhouse Hotels brands. Sansiri will retain ownership of several properties that will continue to operate under the acquired brands through management or franchise agreements, ensuring continuity and sustained growth.

Mark Hoplamazian, President and CEO of Hyatt, expressed his enthusiasm for the acquisition, stating, “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.” Hoplamazian emphasized that adding Standard International’s properties will enhance Hyatt’s ability to set trends and create destinations that resonate with a global audience.

The Vision Behind the Acquisition

Lalvani’s vision for the future is clear: “We waited a long time to find the right company with whom to join forces. 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.”

This acquisition is not just about expanding Hyatt’s footprint; it is about combining Standard International’s creative genius with Hyatt’s operational excellence. The synergies created by this merger will undoubtedly lead to the development of new and exciting lifestyle properties that push the boundaries of what luxury hospitality can be.

Future Growth and Expansion

The acquisition is also forward-looking, with over 30 projects in the pipeline, including new properties slated to open within the next 12 months. These upcoming properties, such as The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, and Bunkhouse Hotels Saint Augustine and Hotel Daphne, are set to redefine luxury lifestyle hospitality in their respective markets.

Moreover, Standard International’s residential business, including Standard Residences in Miami, Lisbon, Phuket, Hua Hin, and Mexico City, and completed Bunkhouse Residences in Austin, will further bolster Hyatt’s presence in the luxury lifestyle segment. These residential projects offer a unique blend of hotel-style amenities and residential comforts, catering to the evolving demands of modern luxury consumers.

Financial Details and Impact

Hyatt will acquire Standard International for a base purchase price of $150 million, with potential additional payments of up to $185 million as more properties are integrated into the portfolio. The stabilized fees associated with this acquisition are expected to generate approximately $17 million, with additional fees potentially reaching up to $30 million if the contingent purchase price is fully realized. This strategic investment is expected to deliver significant returns for Hyatt, both in terms of financial performance and brand equity.

Conclusion: A Bold Step Forward

Hyatt’s acquisition of Standard International is a game-changing move that underscores its commitment to leading the lifestyle hospitality industry. By integrating Standard International’s innovative brands and properties into its portfolio, Hyatt is poised to offer unparalleled experiences to its guests while setting new standards for luxury and creativity in the industry.

As the transaction progresses, the hospitality world eagerly awaits the innovations and trends that will undoubtedly emerge from this powerful new alliance. For Hyatt, this acquisition is not just about growth; it’s about redefining the future of luxury lifestyle hospitality on a global scale.

 

 

 

Written by: Michelle Warner

 

 

 

 

 

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