- Hyatt will pay a base price of $150M for Standard International, with the potential for an additional $185M as new projects are added.
- The acquisition includes 21 hotels across key cities like NYC, London, and Bangkok, but no real estate assets.
- This move aligns with Hyatt’s strategy to expand its lifestyle brands while transitioning to an asset-light model, selling off assets but acquiring new hospitality brands.
Hyatt Hotels Corp. (H) announced Tuesday it agreed to acquire Standard International, a deal that could be valued at up to $335M, according to Bloomberg.
Moelis & Co. served as the financial adviser to Hyatt on the transaction, helping the company secure this strategic acquisition.
Deal Details
The blockbuster deal will strengthen Hyatt’s presence in the lifestyle lodging market as the hotel brand continues to shift toward an asset-light business model under CEO Mark Hoplamazian.
Hyatt will pay an initial $150M, securing brands such as The Standard, Bunkhouse Hotels, and Peri Hotels. The deal includes 21 hotels in prominent cities like NYC, London, and Bangkok, along with a pipeline of more than 30 new projects.
As these developments are completed and integrated into Hyatt’s portfolio, the company may pay an additional $185M over time.
Social Destinations
Standard International’s appeal lies in its hotels functioning as vibrant social hubs, with thriving restaurants and nightlife that attract both leisure and business travelers.
“The equation works better when you have a vibrant food and beverage suite that supports the profitability of the hotel,” Hoplamazian noted, emphasizing the importance of lifestyle brands in the current hotel development landscape.
Asset-Light Strategy
This acquisition is in line with Hyatt’s broader strategy of acquiring brands while divesting assets. Hyatt recently sold properties, such as the Hyatt Regency Orlando, while adding lifestyle-oriented brands like Alila and Dream Hotels to its portfolio, which cater to experience-seeking travelers.
As part of the acquisition, Hyatt will form a new lifestyle lodging group to oversee these brands, with Amar Lalvani, executive chairman of Standard International, set to lead the division. The move signals Hyatt’s commitment to expanding its footprint in the lifestyle hospitality segment.
