In a move that is slated to double the company's luxury and boutique hotel offerings, Hyatt Hotels Corp. officials have announced the company will acquire London-based Mr & Mrs Smith for 53 million pounds sterling ($65.7 million).
The news release announcing the deal described the company as an asset-light platform "offering direct booking access to a carefully curated and growing collection of over 1,500 boutique and luxury properties in some of the world's most desirable locations." Hyatt will acquire 100% ownership of the platform in an all-cash deal.
This marks the latest in a line of acquisitions Hyatt has made to bolster growth in recent years, the most recent of which was the acquisition of Dream Hotel Group's brand and management portfolio. These deals have been largely funded by the proceeds from selling owned real estate.
During a recent interview about the launch of the new Hyatt Studios extended-stay brand, Hyatt President and CEO Mark Hoplamazian said his company will continue to pursue acquisitions as an avenue for growth, much like it did with Dream, Two Roads Hospitality and Apple Leisure Group in recent years.
"We have a record pipeline at this point, so we will continue to execute as we have been, and this is additive to that," he said.
Hyatt officials said the deal is slated to close before the end of June, and properties currently listed on Mr & Mrs Smith will join Hyatt's direct-booking platform at some point after that. They also acknowledged the company is still "exploring ways to enable World of Hyatt members to earn and redeem points across eligible hotels in the Mr & Mrs Smith collection."
In addition to giving the company more heft in the luxury and boutique hotel space, the deal will boost Hyatt's presence in Europe and in some major destinations across the globe that currently lack Hyatt offerings, executives said.
“We are excited by this planned acquisition and to explore bringing guests and World of Hyatt members even more global luxury offerings across hundreds of geographies — including over 20 countries where there are currently no Hyatt hotels such as Fiji, Croatia, Iceland and Anguilla,” Chief Commercial Officer Mark Vondrasek, said in the release announcing the deal.
Mr & Mrs Smith founder Tamara Lohan will remain on and continue to serve as the company's CEO, reporting to Vondrasek. More than 100 employees with Mr. & Mrs. Smith are also expected to join Hyatt as part of the deal.
“I am really excited that we have found such a dynamic and globally trusted brand as Hyatt to take Mr & Mrs Smith into our next chapter. We have long admired and respected Hyatt and are confident that there is no one better placed to build on what we have achieved and take our company to new heights,” Lohan said in the release.
Credit Suisse and Linklaters LLP advised Hyatt on the deal, while Arrowpoint Advisory and Fieldfisher LLP advised Mr & Mrs Smith.