Hyatt Hotels Corp. has completed the acquisition of Standard International, the parent company of The Standard and Bunkhouse Hotels brands. The acquisition helps Hyatt cement its position in the premier lifestyle segment, building on Hyatt’s organic growth and a series of acquisitions that quintupled the volume of lifestyle rooms in Hyatt’s global estate between 2017 and 2023.
Hyatt announced it would be acquiring Standard International in August. Once the deal closes, Hyatt said it would pay a base purchase price of $150 million, with up to an additional $185 million over time as it adds more properties to its portfolio.
The 100% asset-light portfolio consists of management, franchise and license contracts for 22 open hotels totaling 2,000 rooms. The portfolio includes The Standard, London; The Standard, High Line in New York City; The Standard, Bangkok Mahanakhon; and The Manner in SoHo (which opened in August). More properties are expected to join the portfolio, including The Standard, Singapore, Bunkhouse’s Hotel Saint Augustine in Houston and The StandardX, Bangkok Phra Arthit.
The acquisition also includes residential units, with Standard Residences currently under development in Miami, Lisbon, Phuket, Hua Hin, Mexico City and Tulum, as well as completed Bunkhouse Residences at Hotel Saint Cecilia in Austin, Texas.
The acquisition includes over 30 pipeline projects, with a signed agreement or letter of intent and new projects which were signed following the announcement of Hyatt’s planed acquisition.
“The development community knows an industry game-changer when they see it and the enthusiasm for bringing together the ethos of The Standard and Bunkhouse brands and the power of Hyatt’s network and distribution system is palpable,” said Mark Hoplamazian, president and CEO of Hyatt.
Hyatt will soon be launching its new dedicated lifestyle group headquartered in New York City, with additional offices in Austin and Bangkok, and led by Amar Lalvani, president and creative director and former executive chairman of Standard International.
Not for “the faint of heart,’ the lifestyle segment requires creativity and commitment, Lalvani said. “But if you get it right, you reap the benefits of outsized guest loyalty and outsized developer returns. The beauty of this combination is that Hyatt respects the creativity and freedom required to deliver the experiences we do and we respect the value of Hyatt’s storied history, global infrastructure and best-in-class commercial services.”
Hyatt has been expanding its portfolio across all segments. The Chicago-based hotel group 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 from German hotel company Linder Hotels AG. In July, Hyatt’s loyalty program, World of Hyatt, entered into an exclusive alliance with Under Canvas, the outdoor hospitality company, enabling World of Hyatt’s members to access 13 Under Canvas outdoor resorts in the U.S.
The Chicago-based hotel group has a sizeable collection of luxury all-inclusive resorts worldwide, while its select service portfolio (which accounts for 50% of Hyatt’s pipeline as of Q2 2024) is a key driver for launching Hyatt’s brands to new markets.
Hyatt’s shift to an asset-light business model has been successful and the company is now focusing on evolving to benefit guests, owners and stakeholders, Hoplamazian said. “This is not about prioritizing one segment over another, this is about aligning our internal resources and expertise to care even more deeply for guests, customers and owners across our entire portfolio.”
