Hyatt Hotels Corporation is on track to acquire Standard International, which owns lifestyle hotel brands The Standard and Bunkhouse Hotels.
The deal, which is set to close before the end of the year, comes with an initial base price tag of $150 million with another $185 million in post-acquisition growth incentives and fees of up to $47 million, according to a news release announcing the deal.
Hyatt plans to create a new lifestyle group following the transaction led by Standard International's Executive Chairman Amar Lalvani and including both current Standard employees and Hyatt executives.
Lalvani's title with the new group will be president and creative director. Amber Asher, Standard International CEO for the past three years, will not stay on long-term.
"After 13 years with the company, Amber Asher has decided to pursue new opportunities after staying on for a transition period to support the team and ensure a smooth transition," said a Hyatt spokesman.
Lalvani founded the Standard brand in 2010 along with André Balazs. He formed Standard International in 2013 by acquiring the brand from Balazs, later adding Bunkhouse Group to the Standard portfolio.
Before forming Standard International, Lalvani worked in development for the W Hotels brand at Starwood Hotels & Resorts Worldwide. He along with former Starwood colleague Ross Klein were involved in a lawsuit after they left Starwood for Hilton, bringing confidential information Hilton used to launch a new boutique hotel brand, set to be named Denizen. The companies settled in 2010 and Hilton was banned from creating a boutique chain for several years.
Standard's 100% asset-light portfolio includes 21 hotels with roughly 2,000 rooms. The company has an additional 30 projects in its pipeline. Hyatt officials say the company quintupled the size of their lifestyle portfolio from 2017 to 2023 through the combination of organic growth and various acquisitions.
Other brand acquisitions made by Hyatt in that period include Dream Hotel Group, Two Roads Hospitality, Miraval Group and Apple Leisure Group. The deals have largely been funded by a series of real estate dispositions, with the company selling off $3.6 billion in owned hotels since 2019.
Earlier in the week, the company announced the $1.07 billion sale of the Hyatt Regency Orlando, which marked the biggest asset sale price in the company's history.
Hyatt officials believe the planned acquisition of Standard International positions them as the leader in the "premier lifestyle space."
“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,” Hyatt President and CEO Mark Hoplamazian said.
Properties Standard currently has under management, franchise and license agreements include:
- The Standard, London
- The Standard, High Line in New York City
- The Standard, Bangkok Mahanakhon
- Hotel Saint Cecilia in Austin, Texas
- Hotel San Cristóbal, Baja California, Mexico
Standard International had been majority owned by Sansiri PLC since 2017, and that firm will continue to own several of the Standard-branded properties.
The company also operates several restaurants, branded residences and nightlife concepts, along with two smaller hotel brands, Peri Hotels and The StandardX.
“We waited a long time to find the right company with whom to join forces,” Lalvani said in the news release announcing the deal. “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.”
As of June 30, Hyatt's portfolio included more than 1,350 hotels and all-inclusive properties in 78 countries across six continents.