Hyatt Hotels Corp. has announced plans to acquire Standard International, the parent company of The Standard and Bunkhouse Hotels brands, and its brands and most of the affiliates. Once the deal closes, Hyatt will pay a base purchase price of $150 million, with up to additional $185 million over time as it adds more properties to its portfolio.
The transaction is expected to close later this year, subject to approvals.
This move will help Hyatt strengthen its 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.
The deal will see Hyatt creating a new dedicated lifestyle group based in New York City. The new group will consist of the Standard International team along with Hyatt team members. Led by Amar Lalvani, Standard International’s executive chairman, the lifestyle group will leverage Hyatt’s operational and loyalty infrastructure while assuming leadership in experience creation, design, marketing, programming, public relations, restaurants, nightlife and entertainment.
Lalvani will assume the role of president and creative director of the new group and lead the integration of the brands, while ensuring and enhancing the integrity, innovation, creativity and growth of every brand.
The acquired portfolio will be fully asset-light and includes management, franchise and license contracts for 21 open hotels with roughly 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 Cristóbal in Baja California, Mexico.
Once the transaction closes, these properties will join World of Hyatt, Hyatt’s loyalty program.
Hyatt has been diversifying and expanding its offerings with a series of recent acquisitions. The company widened its presence in the luxury segment with the acquisition of Mr & Mrs Smith for £53 million in April 2023. Earlier this year, Hyatt acquired me and all hotels into its brand portfolio from Linder hotels AG, the family-owned German hotel company, with the aim to expand into newer markets across Europe. In July, World of Hyatt formed an exclusive alliance with Under Canvas, the outdoor hospitality company, which enabled World of Hyatt members to access 13 Under Canvas outdoor resorts across the U.S.
Besides The Standard and Bunkhouse Hotels brands, Standard International’s portfolio includes Peri Hotels and its two new additions, The StandardX (which launched earlier this month in Melbourne) and The Manner (which launches in September in Soho, New York). Standard International’s portfolio also consists of restaurant and nightlife concepts.
Upon the closing of the deal, the sale will cap the investment for Sansiri PLC, which acquired a majority position in Standard International in 2017 and helped the company’s international expansion. Sansiri will retain ownership of several properties, which will be managed or franchised under the acquired brands.
“The team behind Standard International has created a unique portfolio of brands and properties that turn the status quo on its head and have attracted a loyal following among lifestyle guests for the past 25 years,” said Mark Hoplamazian, Hyatt’s president and CEO. “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.”
The acquisition includes more than 30 projects with a signed agreement or Letter of Intent, including new properties scheduled to open in the next 12 months — The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit; along with Bunkhouse Hotels Saint Augustine and Hotel Daphne. Standard International also has 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, Texas.
Before establishing Standard International, Lalvani led the development of W Hotels. In 2010, he teamed up with André Balazs to create The Standard brand. In 2013, Lalvani founded Standard International and acquired The Standard brand from Balazs. He then acquired a majority stake in The Bunkhouse Group from its founder Liz Lambert and her partners. Lalvani helmed the transitions of both companies from founder-led startups to global brands by developing landmark properties.
“We waited a long time to find the right company with whom to join forces. In choosing Hyatt, we tap into a powerful global infrastructure and loyal guest base,” Lalvani said. “We have a shared vision for the 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.”
Moelis & Company LLC served as financial advisor to Hyatt and Venable LLP acted as its legal advisor.
