Hyatt Hotels Corporation (NYSE: H) announced the planned acquisition of Standard International, parent company of The Standard and Bunkhouse Hotels brands.
Upon closing, Hyatt will pay a base purchase price of $150 million, with up to an additional $185 million over time as additional properties enter the portfolio. According to the Chicago-headquartered Hyatt, stabilized fees associated with the base purchase price are anticipated to be approximately $17 million and additional stabilized fees are anticipated to be up to approximately $30 million.
The acquired portfolio will be 100% asset-light and includes management, franchise and license contracts for 21 open hotels with approximately 2,000 rooms across Europe, North America, Australia and Asia; Hyatt plans to integrate these hotels into its World of Hyatt rewards program. The acquired portfolio also includes Standard’s restaurant and nightlife operations.
With this transaction, Hyatt will form a new dedicated lifestyle group that will be headquartered in New York City and led by Standard International’s Executive Chairman Amar Lalvani in the role of president and creative director. The new lifestyle group will be made up of the Standard International team and Hyatt colleagues.
“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 CEO at 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.”
Photo: The Standard, London
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