Hyatt Hotels Corporation has a deal in place to acquire the brands and most of the affiliates of lifestyle company Standard International, parent company of The Standard and Bunkhouse Hotels brands. The transaction is anticipated to close later this year, subject to customary closing conditions.
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.
This move enhances Hyatt’s position in the industry’s 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.
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 best-in-class operational and loyalty infrastructure while assuming distinct leadership across key 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% 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 treasures like Hotel Saint Cecilia in Austin and Hotel San Cristóbal in Baja California, Mexico. Following the closing of the transaction, Hyatt plans to integrate these hotels into the World of Hyatt loyalty program.
Upon closing, the sale will cap a successful investment for Sansiri PLC, which acquired a majority position in Standard International in 2017 and facilitated the company’s 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/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 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.”
Upon closing, Lalvani will take on the role of president/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 individual lifestyle brand.
Lalvani led the global development of W Hotels and then in 2010 partnered with André 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 globally recognized 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 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.”
In addition to The Standard and Bunkhouse Hotels brands, Standard International’s 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, in time for New York Fashion Week. Beyond its hotel brands, the portfolio includes restaurant and nightlife concepts including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill and Jo’s 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 and 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.
In connection with the transaction, Moelis & Company LLC served as financial advisor to Hyatt, and Venable LLP acted as its legal advisor.
