Hyatt Hotels Corp. has announced plans to acquire Standard International, the parent company of The Standard Hotels and Bunkhouse Hotels, its brands and most affiliates. Once the transaction closes, Hyatt will pay $150 million as a base purchase price and pay up to $185 million as it adds properties to its portfolio.
The transaction is expected to close later this year, subject to approvals.
The move will help Hyatt strengthen its position in the premium lifestyle segment, building on its own organic growth and a series of acquisitions that have increased the number of lifestyle rooms in Hyatt's global portfolio fivefold between 2017 and 2023.
The deal will see Hyatt create a new lifestyle group based in New York City, comprised of Standard International and Hyatt team members. Led by Amar Lalvani, executive chairman of Standard International, the lifestyle group will provide leadership in experience creation, design, marketing, programming, public relations, restaurants, nightlife and entertainment, while leveraging Hyatt's operational and loyalty infrastructure.
Lalvani will assume the role of President and Creative Director of the new group and will be responsible for leading the integration of the brands while ensuring and enhancing the integrity, innovation, creativity and growth of each brand.
The acquired portfolio is fully asset-light and includes management, franchise and licensing agreements for 21 operating hotels with approximately 2,000 rooms, including The Standard in London, The Standard Highline in New York City and The Standard at Mahanakhon Bangkok, as well as boutique hotels such as Hotel San Cecilia in Austin, Texas and Hotel San Cristobal in Baja California, Mexico.
The Standard, London.
Once the transaction closes, the properties will join Hyatt's loyalty program, World of Hyatt.
Hyatt has been diversifying and expanding its offering with a series of recent acquisitions. The company acquired Mr & Mrs Smith in April 2023 for £53 million to increase its presence in the luxury segment. Earlier this year, Hyatt acquired Me and All Hotels from Linder Hotels AG, a German family-owned hotel company, into its brand portfolio, in an effort to expand into new markets across Europe. In July, World of Hyatt entered into an exclusive partnership with outdoor hospitality company Undercanvas, giving World of Hyatt members access to 13 of Undercanvas's outdoor resorts across the United States.
Standard International's portfolio includes The Standard and Bunkhouse Hotel brands, as well as Peri Hotel and its two new hotels, The Standard X (which opened in Melbourne earlier this month) and The Manor (opening in New York's SoHo in September). Standard International's portfolio also includes restaurant and nightlife concepts.
With the closing of the transaction, the sale caps Sansiri PLC's investment in Standard International, which acquired a majority stake in the company in 2017 and supported the company's international expansion. Sansiri will retain ownership of several properties, which will be managed or franchised under the acquired brands.
“The Standard International team has created a unique portfolio of disruptive brands and properties that have captivated a loyal following of lifestyle guests for the past 25 years,” said Mark Hoplamazian, president and CEO, Hyatt. “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 created Lifestyle Group, and to leverage their talent, creativity, culture and innovation.”
The acquisition includes more than 30 projects with signed contracts or letters of intent, including new properties due to open in the next 12 months – The Standard, Pattaya Na Jomtien, The Standard X, Bangkok Phra Arthit, as well as Bunkhouse Hotels St. Augustine and Hotel Daphne. Standard International is developing residences in Miami, Lisbon, Phuket, Hua Hin and Mexico City, and has completed the Bunkhouse Residences at Hotel St. Cecilia in Austin, Texas.
Prior to founding Standard International, Lalvani led the development of W Hotels. In 2010, Lalvani partnered with Andre Balas to launch The Standard brand. In 2013, Lalvani founded Standard International and acquired The Standard brand from Balas. Lalvani subsequently acquired a majority stake in The Bankhouse Group from its founder, Liz Lambert, and her partners. Lalvani led the transition of both companies from founder-led start-ups to global brands by developing landmark properties.
“We have waited a long time to find the right company to join forces with, and choosing Hyatt allows us to leverage their strong global infrastructure and loyal guest base,” Lalvani said. “We have a shared vision of the possibilities that lie ahead, and 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.”
Moelis & Company LLC acted as financial advisor to Hyatt, and Venable LLP served as legal counsel.
