UPDATE: Oct. 2, 2024: Hyatt Hotels Corp. completed its acquisition of Standard International, the company announced Tuesday. Hyatt assumed Standard’s 100% asset-light portfolio of management, franchise and license contracts for 22 open hotels with approximately 2,000 rooms, as well as more than 30 pipeline projects.
Hyatt Hotels Corp. plans to acquire lifestyle company Standard International and most of its affiliate hotel brands in a multimillion-dollar deal, Hyatt announced this morning.
With the acquisition, Hyatt will assume an asset-light portfolio of management, franchise and license contracts for 21 open hotels with approximately 2,000 rooms, including The Standard, High Line in New York City; Hotel Saint Cecilia in Austin, Texas; and more boutique accommodations in international markets.
Upon closing, Hyatt will pay a base purchase price of $150 million, with up to an additional $185 million over time as more properties enter the portfolio, according to the company.
The deal includes more than 30 ongoing hotel projects with signed agreements or letters of intent, including several expected to open in the next 12 months.
In line with the acquisition, Hyatt will form a new dedicated lifestyle group headquartered in New York City, the company detailed in a Wednesday release. Standard International Executive Chairman Amar Lalvani will lead the group, which will be made up of a mix of Standard International team members and Hyatt colleagues.
The group will leverage Hyatt's operational and loyalty infrastructure while assuming “distinct leadership across key functions including experience creation, design, marketing, programming, public relations, restaurants, nightlife and entertainment,” according to the hotel company.
“We waited a long time to find the right company with whom to join forces,” Lalvani said in a statement. “In choosing Hyatt, we tap into a powerful global infrastructure and loyal guest base.”
The deal comes just weeks after Bloomberg first reported Hyatt was in advanced talks to acquire Standard International, though both companies initially remained tight-lipped about the potential acquisition.
Experts told Hotel Dive last month that the deal was not unlikely, given Hyatt’s recent track record of brand acquisitions, including the luxury Mr & Mrs Smith platform in 2023 and German lifestyle hotel brand Me and All in June.
The deal could benefit Hyatt’s ability to quickly grow portfolio scale and build loyalty, according to hospitality professionals.
According to Hyatt, the move enhances the company’s position in the premier lifestyle space, “building on both its organic growth and a series of acquisitions that quintupled the number of lifestyle rooms in Hyatt’s global portfolio between 2017 and 2023.”
In the second quarter of this year, alone, Hyatt added 700 boutique and luxury hotels and villas to its system from its Mr & Mrs Smith acquisition. And the company has made a concerted push in the luxury and lifestyle space over the past year.
The Standard International transaction is anticipated to close later this year, subject to customary closing conditions, according to Hyatt.
