- Hyatt is in advanced negotiations to acquire Standard International, a boutique hotel operator with properties in prime leisure destinations.
- The acquisition aligns with Hyatt’s recent strategy of expanding through strategic purchases to bolster its portfolio in leisure travel markets.
- Hyatt has previously acquired Apple Leisure Group in 2021 and Dream Hotel Group in 2022, significantly increasing its number of luxury, resort, and lifestyle rooms.
According to Bloomberg, Hyatt Hotels Corp. (H) is close to acquiring boutique hotel company Standard International.
From The Horse’s Mouth
Sources familiar with the matter say private talks between the two companies are “in advanced stages.” However, one source noted that the deal has not been finalized and could still fall through, as reported by Bisnow.
Hyatt declined to comment directly on the talks but a spokesperson stated that the company remains “committed to asset-light growth through both organic growth and strategic acquisitions.” Standard International declined to comment.
The Bigger Picture
If successful, Hyatt’s acquisition of Standard International would be the latest in a series of strategic purchases aimed at enhancing Hyatt’s presence in leisure travel markets.
In 2021, Hyatt acquired the Apple Leisure Group, adding 33K rooms, primarily in all-inclusive resorts in Mexico, the Caribbean, and Europe. And in 2022, Hyatt acquired the Dream Hotel Group, which added 12 “lifestyle” hotels to its portfolio.
Standard International operates trendy hospitality properties in major travel destinations like London, Ibiza, the Maldives, NYC, and Miami. The company also has upcoming openings in Melbourne, Singapore, and Brussels.
Why It Matters
These acquisitions are part of Hyatt’s broader strategy to transition to an ‘asset-light’ business model focused on licensing brands to outside investors. This approach not only expands Hyatt’s portfolio but also helps attract loyalty members by making more desirable destination hotel rooms available.
As of June, Hyatt reported that its pipeline has grown by almost 85% since 2017, and now encompasses 129,000 rooms. The company’s stock of luxury rooms doubled, resort rooms tripled, and lifestyle rooms increased four-fold over the same period.
