Hyatt to Acquire Standard International and its Iconic Hotel Brands, The Standard and Bunkhouse Hotels, Expanding Its Leading Position in Lifestyle Hospitality
Hyatt Hotels (NYSE: H) has announced plans to acquire Standard International, parent company of The Standard and Bunkhouse Hotels brands. This acquisition will significantly enhance Hyatt's position in the lifestyle hospitality sector. Key points include:
1. Formation of a new dedicated lifestyle group headquartered in New York City, led by Standard International's Executive Chairman Amar Lalvani.
2. Addition of 21 open hotels with approximately 2,000 rooms to Hyatt's portfolio.
3. Integration of acquired properties into the World of Hyatt loyalty program.
4. Base purchase price of $150 million, with potential additional $185 million as more properties join the portfolio.
5. Expected stabilized fees of $17 million, potentially increasing to $47 million.
Hyatt Hotels (NYSE: H) ha annunciato piani per acquisire Standard International, la società madre dei marchi The Standard e Bunkhouse Hotels. Questa acquisizione migliorerà notevolmente la posizione di Hyatt nel settore dell'ospitalità lifestyle. I punti chiave includono:
1. Creazione di un nuovo gruppo dedicato allo lifestyle con sede a New York, guidato dal presidente esecutivo di Standard International, Amar Lalvani.
2. Aggiunta di 21 hotel aperti con circa 2.000 camere al portafoglio di Hyatt.
3. Integrazione delle proprietà acquisite nel programma di fedeltà World of Hyatt.
4. Prezzo base di acquisto di 150 milioni di dollari, con potenziale aggiuntivo di 185 milioni di dollari man mano che altre proprietà si uniscono al portafoglio.
5. Previsione di canoni stabilizzati di 17 milioni di dollari, che potrebbero aumentare fino a 47 milioni di dollari.
Hyatt Hotels (NYSE: H) ha anunciado planes para adquirir Standard International, la empresa matriz de las marcas The Standard y Bunkhouse Hotels. Esta adquisición mejorará significativamente la posición de Hyatt en el sector de la hospitalidad lifestyle. Los puntos clave incluyen:
1. Formación de un nuevo grupo dedicado al lifestyle con sede en Nueva York, liderado por el presidente ejecutivo de Standard International, Amar Lalvani.
2. Adición de 21 hoteles abiertos con aproximadamente 2.000 habitaciones al portafolio de Hyatt.
3. Integración de las propiedades adquiridas en el programa de lealtad World of Hyatt.
4. Precio de base de adquisición de 150 millones de dólares, con un potencial adicional de 185 millones de dólares a medida que más propiedades se incorporen al portafolio.
5. Se espera que las tarifas estabilizadas sean de 17 millones de dólares, pudiendo aumentar hasta 47 millones de dólares.
하야트 호텔 (NYSE: H)이 스탠다드 인터내셔널을 인수할 계획을 발표했습니다. 스탠다드 및 Bunkhouse 호텔 브랜드의 모회사입니다. 이 인수는 하야트의 라이프스타일 환대 분야에서의 입지를 크게 향상시킬 것입니다. 주요 사항은 다음과 같습니다:
1. 뉴욕에 본사를 두고 스탠다드 인터내셔널의 Amar Lalvani 회장이 이끄는 전문 라이프스타일 그룹의 구성.
2. 하야트 포트폴리오에 약 2,000개의 객실을 갖춘 21개의 오픈 호텔 추가.
3. 인수한 자산을 하야트 월드 로열티 프로그램에 통합.
4. 1억 5천만 달러의 기준 구매 가격, 포트폴리오에 더 많은 자산이 추가될 경우 최대 1억 8천5백만 달러 추가.
5. 1천7백만 달러의 안정화 요금이 예상되며 4천7백만 달러로 증가할 가능성이 있습니다.
Hyatt Hotels (NYSE: H) a annoncé son intention d'acquérir Standard International, la société mère des marques The Standard et Bunkhouse Hotels. Cette acquisition renforcera considérablement la position de Hyatt dans le secteur de l'hospitalité lifestyle. Les points clés incluent :
1. Création d'un nouveau groupe dédié au lifestyle basé à New York, dirigé par Amar Lalvani, le président exécutif de Standard International.
2. Ajout de 21 hôtels ouverts avec environ 2 000 chambres au portefeuille de Hyatt.
3. Intégration des propriétés acquises dans le programme de fidélité World of Hyatt.
4. Prix d'achat de base de 150 millions de dollars, avec un potentiel supplémentaire de 185 millions de dollars à mesure que d'autres propriétés rejoignent le portefeuille.
5. Des frais stabilisés attendus de 17 millions de dollars, pouvant potentiellement augmenter à 47 millions de dollars.
Hyatt Hotels (NYSE: H) hat Pläne zur Übernahme von Standard International, der Muttergesellschaft der Marken The Standard und Bunkhouse Hotels, angekündigt. Diese Akquisition wird Hyatt erheblich im Lifestyle-Hospitality-Sektor stärken. Zu den wesentlichen Punkten gehören:
1. Gründung einer neuen dedizierten Lifestyle-Gruppe mit Sitz in New York, geleitet von Amar Lalvani, dem Executive Chairman von Standard International.
2. Hinzufügung von 21 eröffneten Hotels mit etwa 2.000 Zimmern zum Portfolio von Hyatt.
3. Integration der übernommenen Objekte in das World of Hyatt Treueprogramm.
4. Basis-Kaufpreis von 150 Millionen Dollar, mit einem zusätzlichen Potenzial von 185 Millionen Dollar, wenn weitere Objekte dem Portfolio beitreten.
5. Erwartete stabilisierte Gebühren von 17 Millionen Dollar, die möglicherweise auf 47 Millionen Dollar ansteigen können.
- Acquisition strengthens Hyatt's position in the premium lifestyle hospitality sector
- Addition of 21 open hotels with approximately 2,000 rooms to Hyatt's portfolio
- Integration of acquired properties into World of Hyatt loyalty program, potentially attracting more members
- Expansion of Hyatt's asset-light portfolio
- Potential for additional $185 million in value as more properties join the portfolio
- Initial $150 million cash outlay for the acquisition
- Potential integration challenges merging Standard International's operations with Hyatt's existing structure
- Risk of diluting Hyatt's brand identity with the addition of new lifestyle brands
Insights
Hyatt's acquisition of Standard International marks a significant move in the luxury hospitality sector. The $150 million base purchase price, with potential for an additional $185 million, represents a strategic investment to strengthen Hyatt's position in the lifestyle segment. This asset-light acquisition adds 21 hotels with
This acquisition significantly enhances Hyatt's lifestyle portfolio, addressing the growing demand for unique, experience-driven accommodations. The Standard and Bunkhouse brands are known for their trendsetting properties and loyal customer base, which could attract a younger, affluent demographic to Hyatt's ecosystem. The integration of these brands into the World of Hyatt loyalty program (48 million members) could drive increased bookings and customer retention. The 30+ pipeline projects suggest strong growth potential. However, the success of this venture will depend on Hyatt's ability to maintain the brands' distinctive character while leveraging its global distribution network. The formation of a dedicated lifestyle group in New York City demonstrates Hyatt's commitment to preserving the brands' unique appeal, which is important for long-term success in this competitive segment.
The acquisition's structure as an asset-light deal mitigates some financial risks for Hyatt, as they're primarily acquiring brand rights and management contracts rather than real estate assets. This approach aligns with industry trends towards separating property ownership from brand management. The contingent purchase price of up to
Formation of new lifestyle group to combine best-in-class lifestyle brand leadership and talent with Hyatt’s global distribution network and award-winning World of Hyatt loyalty program
The Standard,
With this transaction, Hyatt will form a new dedicated lifestyle group that will be headquartered in
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,
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
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
Upon closing, Hyatt will pay a base purchase price of
In connection with the transaction, Moelis & Company LLC served as financial advisor to Hyatt and Venable LLP acted as its legal advisor.
The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in
About Standard International
Standard International is the parent company of The Standard hotels. Created in 1999, The Standard hotels are known for their pioneering design, taste-making clientele, and unrelenting un-standard-ness. Launched originally in
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about the Company’s proposed acquisition of Standard International, the expected timeline for completing the acquisition, the Company’s plans for a dedicated lifestyle group and personnel for such group, expected management fees as a result of the acquisition, the Company’s development pipeline, strategies, outlook, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as earthquakes, tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); our ability to successfully execute our strategy to expand our management and hotels services and franchising business while at the same time reducing our real estate asset base within targeted timeframes and at expected values; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotels services or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and Unlimited Vacation Club paid membership program; cyber incidents and information technology failures; outcomes of legal or administrative proceedings; and violations of regulations or laws related to our franchising business and licensing businesses and our international operations; and other risks discussed in the Company's filings with the SEC, including our annual reports on Form 10-K and quarterly reports on Form 10-Q, which filings are available from the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
HHC-FIN
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MEDIA CONTACTS:
Franziska Weber
Hyatt
franziska.weber@hyatt.com
Lara Bogossian
Standard International
lara.bogossian@standardhotels.com
INVESTOR CONTACTS:
Adam Rohman
Hyatt
adam.rohman@hyatt.com
Tara
Hyatt
tara.atwood@hyatt.com
Source: Hyatt Hotels Corporation
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