Home » America Travel News » Hyatt Set to Acquire Standard International, Adding The Standard and Bunkhouse Hotels to Its Lifestyle Portfolio
Wednesday, August 21, 2024
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Hyatt Hotels Corporation announced today its planned acquisition of the brands and most affiliates of the pioneering lifestyle company Standard International, parent of The Standard and Bunkhouse Hotels. This strategic move strengthens Hyatt’s leadership in the premier lifestyle segment, further building on its organic growth and a series of acquisitions that have quintupled the number of lifestyle rooms in its global portfolio from 2017 to 2023. The transaction, subject to customary closing conditions, is expected to finalize later this year.
Following the acquisition, Hyatt will establish a new dedicated lifestyle group headquartered in New York City. This group will be led by Standard International’s Executive Chairman, Amar Lalvani, and will leverage Hyatt’s operational and loyalty infrastructure while assuming leadership in key areas such as experience creation, design, marketing, programming, public relations, and more. The group will comprise both the talented team from Standard International and Hyatt colleagues. Additional details about the group will be released after the transaction closes.
This acquisition marks a significant step in Hyatt’s evolution toward becoming a brand- and experience-driven company. The asset-light portfolio includes management, franchise, and license agreements for 21 hotels, totaling approximately 2,000 rooms, including The Standard, London, The Standard, High Line in New York City, The Standard, Bangkok Mahanakhon, and boutique gems like Hotel Saint Cecilia in Austin, Texas, and Hotel San Cristóbal in Baja California, Mexico. After closing, Hyatt plans to integrate these properties into World of Hyatt, expanding the program’s offerings to its 48 million loyalty members.
This sale will conclude a successful investment for Sansiri PLC, which acquired a majority stake in Standard International in 2017 and supported the company’s global expansion. Sansiri will retain ownership of several properties 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 the transaction’s completion, Amar Lalvani will become President & Creative Director of the lifestyle group, overseeing the integration of the brands within the group while enhancing the innovation, creativity, and growth of each brand.
Lalvani, who previously led the global development of W Hotels, partnered with André Balazs on The Standard brand in 2010. In 2013, he founded Standard International, acquiring The Standard brand from Balazs and later acquiring a majority stake in The Bunkhouse Group. Under Lalvani’s leadership, both companies transitioned from founder-led startups to globally recognized brands with 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.”
Standard International’s brand portfolio includes Peri Hotels and its two newest brands, The StandardX, which recently launched in Melbourne, Australia, and The Manner, set to open next month in Soho, New York, just in time for New York Fashion Week. The portfolio also features world-class restaurants and nightlife venues, including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill, and iconic rooftop venues like Le Bain, Decimo, Sweeties, UP, Ojo, and Sky Beach.
The acquisition also includes over 30 projects with signed agreements or letters of intent, including upcoming properties like The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, Bunkhouse Hotels Saint Augustine, and Hotel Daphne. Standard International has also expanded into residential development with Standard Residences under construction in Miami, Lisbon, Phuket, Hua Hin, and Mexico City, and completed Bunkhouse Residences at the Hotel Saint Cecilia in Austin.
Hyatt will pay a base purchase price of $150 million, with up to an additional $185 million payable over time as more properties are added to the portfolio. Stabilized fees associated with the base purchase price are expected to be approximately $17 million, with potential additional stabilized fees of up to $30 million if the contingent purchase price is paid.
Moelis & Company LLC served as the financial advisor to Hyatt, and Venable LLP acted as its legal advisor for this transaction.
