Hyatt Shares Plans to Acquire Standard International
Lifestyle
CHICAGO, IllinoisHyatt Hotels Corporation announced the planned acquisition of the brands and most of the affiliates of lifestyle company Standard International, the parent company of The Standard and Bunkhouse Hotels brands. This move builds on Hyatt’s organic growth and acquisitions that quintupled the number of lifestyle rooms in Hyatts global portfolio between 2017 and 2023. The transaction is anticipated to close later this year, subject to customary closing conditions.
With this transaction, Hyatt will form a new dedicated lifestyle group that will be headquartered in New York City. Led by Standard International’s Executive Chairman Amar Lalvani, the lifestyle group will leverage Hyatt’s operational and loyalty infrastructure while assuming leadership across functions including experience creation, design, marketing, programming, public relations, restaurants, nightlife, and entertainment. The new lifestyle group will be made up of the Standard International team as well as Hyatt colleagues; more details about the lifestyle group will be shared following the closing of the transaction.
The acquired portfolio will be 100 percent asset-light and includes management, franchise, and license contracts for 21 open hotels with approximately 2,000 rooms, including The Standard, London; The Standard, High Line in New York City; The Standard, Bangkok Mahanakhon; and boutique hotels like Hotel Saint Cecilia in Austin, Texas, and Hotel San Cristbal in Baja California, Mexico. Following the closing of the transaction, Hyatt plans to integrate these hotels into World of Hyatt.
Upon closing, the sale will cap an investment for Sansiri PLC, which acquired a majority position in Standard International in 2017 and facilitated the companys international expansion. Sansiri will continue to own several properties that will be 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 CEO, Hyatt. These properties truly drive the zeitgeist, creating destinations unto themselves with celebrated and talked-about programming and events, such as the Met Gala after party. We are thrilled to welcome Standard Internationals properties and team to the Hyatt family with the newly created lifestyle group and draw on their brilliance, creativity, culture, and innovation.
Upon closing, Lalvani will take on the role of president and creative director of the lifestyle group, overseeing the integration of the brands to be housed within the group while ensuring and enhancing the integrity, innovation, creativity, and growth of each lifestyle brand.
Lalvani led the global development of W Hotels and then in 2010 partnered with Andr Balazs on The Standard brand. In 2013, Lalvani formed Standard International and acquired The Standard brand from Balazs and followed that with an acquisition of a majority stake in The Bunkhouse Group from its founder Liz Lambert and her partners. Thereafter, Lalvani spearheaded the transitions of both companies from founder-led start-ups to global brands through the development of 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, andmost importantlyour 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.
In addition to The Standard and Bunkhouse Hotels brands, Standard Internationals brand portfolio includes Peri Hotels and its two newest additions, The StandardX, which launched this month in Melbourne, Australia, and The Manner, which launches next month in Soho, New York. Beyond its hotel brands, the portfolio includes restaurant and nightlife concepts including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Caf Standard, Lido Bayside Grill, Jos Coffee as well as rooftop venues including Le Bain, Decimo, Sweeties, UP, Ojo, and Sky Beach.
The acquisition includes more than 30 projects with a signed agreement or letter of intent, including new properties expected to open over the next 12 months: The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, as well as Bunkhouse Hotels Saint Augustine and Hotel Daphne. Standard International has also developed a residential business with Standard Residences under development in Miami, Lisbon, Phuket, Hua Hin, and Mexico City, as well as completed Bunkhouse Residences at the Hotel Saint Cecilia in Austin.
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. Stabilized fees associated with the base purchase price are anticipated to be approximately $17 million and, to the extent the contingent purchase price is paid, additional stabilized fees are anticipated to be up to approximately $30 million.
In connection with the transaction, Moelis & Company LLC served as financial advisor to Hyatt and Venable LLP acted as its legal advisor.
