Tourexpi
Hyatt
Hotels Corporation (NYSE: H) today announced the planned
acquisition of the brands and most of the affiliates of pioneering
lifestyle company Standard
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 closing conditions.
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.
Image
Credit: © Hyatt Hotels Corporation
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