Hyatt Hotels has announced plans to acquire Standard International, the parent company of the Standard Hotels and Bunkhouse Hotels brands, to create a new lifestyle hospitality group.
Hyatt will pay $150 million as a base purchase price and will pay up to $185 million for each property added to the portfolio.
The deal initially covers 21 open hotels with approximately 2,000 rooms, including The Standard in London (pictured), The Standard Highline in New York City and The Standard at Mahanakhon Bangkok, as well as boutique properties such as Hotel St. Cecilia in Austin, Texas and Hotel San Cristobal in Baja California, Mexico.
Hyatt said the planned acquisition continues its evolution into a “brand and experience-driven company.”
As part of the transaction, Hyatt will create a new lifestyle group headquartered in New York City and led by Standard International's executive chairman, Amar Lalvani. Mr. Lalvani will serve as president and creative director of the lifestyle group.
Lalvani led the global development of W Hotels before partnering with Andre Balas to launch The Standard brand in 2010. In 2013, Lalvani founded Standard International and acquired The Standard brand from Balas and subsequently acquired a majority stake in The Bunkhouse Group.
“We have been working a long time to find the right company to join forces with,” said Lalvani. “Choosing Hyatt allows us to leverage their strong global infrastructure and loyal guest base. I am incredibly proud that our team has been able to realize the potential we saw in The Standard and Bunkhouse Hotels, and honored that Hyatt recognizes the excellence of our brands, properties and most importantly, our employees. We share a shared vision of the great potential that still lies ahead.”
In addition to The Standard and Bunkhouse Hotel brands, Standard International's brand portfolio includes Peri Hotel and its two newest hotels, The Standard X, which opened this month in Melbourne, Australia, and The Manor, which will open in New York's SoHo next month to coincide with New York Fashion Week.
The acquisition includes more than 30 projects with signed contracts or letters of intent, including new properties due to open within the next 12 months: The Standard, Pattaya Na Jomtien, The Standard X, Bangkok Phra Arthit, Bunkhouse Hotels St Augustine and Hotel Daphne.
Beyond hotel brands, the portfolio also includes restaurant and nightlife concepts such as The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill and Jo's Coffee, as well as iconic rooftop venues such as Le Bain, Decimo, Sweeties, UP, Ojo and Sky Beach.
