Hyatt Hotels Corp. has revealed plans to acquire Standard International, the parent company of Standard Hotels and Bunkhouse Hotels.
The transaction expands Hyatt's position in the lifestyle sector and is expected to close later this year.
Standard International Hotel Portfolio
The Standard, London
The acquired portfolio is 100% asset-light and includes management, franchise and licensing agreements for 21 open hotels with approximately 2,000 rooms, including The Standard in London, The Standard Highline in New York and The Standard at Bangkok Mahanakhon, as well as boutique properties such as Hotel San Cecilia in Austin, Texas and Hotel San Cristobal in Baja California, Mexico.
Following the closing of the transaction, Hyatt plans to integrate the hotels into its World of Hyatt program, offering a portfolio of lifestyle properties to its 48 million loyalty members.
Once the sale is completed, it will cap its investment in Sansiri PLC, which acquired a majority stake in Standard International in 2017 to drive the company's international expansion.
Hyatt's new lifestyle group led by Amar Lalvani
Hotel San Cristobal, Todos Santos, Mexico
Hyatt will soon form a new Lifestyle Group comprised of teams from both Standard and Hyatt and will be headquartered in New York. Led by Amar Lalvani, Executive Chairman of Standard International, the group will provide clear leadership in key functions such as experience creation, design, marketing and programming, while leveraging Hyatt's operational and loyalty infrastructure.
“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 Standard and Bunkhouse Hotels, and I am honored that Hyatt recognizes the excellence of our brand, our properties and most importantly, our employees.”
“We share a shared vision of the enormous potential that still lies ahead,” he added. “I cannot help but express my gratitude to Hyatt for taking this bold step and to Sansiri for playing a key role in supporting our efforts.”
Additional assets acquired
The recently opened StandardX in Melbourne
Standard International's brand portfolio also includes Peri Hotels and its two newest properties, Standard X, which opened in Melbourne this month and The Manor, which will debut in New York next month.
The acquisition includes more than 30 projects for which contracts or letters of intent have been signed, including The Standard at Na Jomtien Pattaya, The Standard X at Phra Arthit Bangkok, Hotel St Augustine and Hotel Daphne, which are due to open within the next 12 months.
Standard International also has a robust residential portfolio, including Standard Residences in development in Miami, Lisbon, Phuket, Hua Hin and Mexico City, as well as the completed Bunkhouse Residences at Hotel St. Cecilia.
“The Standard International team has created a unique, award-winning portfolio of disruptive brands and properties that have attracted a loyal following of the most lifestyle-conscious guests over the past 25 years,” said Mark Hoplamazian, Hyatt president and CEO. “These properties have truly driven the zeitgeist, creating destinations all their own with well-known, talked-about programming and events, such as the Met Gala after-party. We are thrilled to welcome Standard International's properties and team into the Hyatt family, along with our newly formed Lifestyle Group, and to leverage their talent, creativity, culture and innovation.”
Moelis & Company LLC acted as financial advisor and Venable LLP acted as legal advisor to Hyatt in connection with the transaction.
Standard International has been named Hospitality Design's 2024 Hotel Company of the Year as part of the 20th annual HD Awards program.
The Standard, Bangkok Mahanakhon
Hotel St. Cecilia
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