Formation of new lifestyle group to combine
best-in-class lifestyle brand leadership and talent with Hyatt’s
global distribution network and award-winning World of Hyatt
loyalty program
Hyatt Hotels Corporation (NYSE: H) today announced the planned
acquisition of the brands and most of the affiliates of pioneering
lifestyle company Standard International, parent company of The
Standard and Bunkhouse Hotels brands. This move enhances Hyatt’s
position as the leader in the industry’s 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 transaction is anticipated to
close later this year, subject to customary closing conditions.
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The Standard, London (Photo: Business
Wire)
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
talented Standard International team as well as Hyatt colleagues –
more details about the lifestyle group will be shared following the
closing of the transaction.
The planned acquisition will continue Hyatt’s evolution to a
brand- and experience-driven company. 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
treasures like Hotel Saint Cecilia in Austin, Texas and Hotel San
Cristóbal in Baja California, Mexico. Following the closing of the
transaction, Hyatt plans to integrate these hotels into World of
Hyatt, bringing this portfolio of celebrated lifestyle properties
to the program’s 48 million loyalty members.
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 and Chief Executive Officer, 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 world-class restaurant and
nightlife concepts including The Boom Boom Room, The Standard
Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill,
Jo’s Coffee as well as iconic 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 robust 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.
The term “Hyatt” is used in this release for convenience to
refer to Hyatt Hotels Corporation and/or one or more of its
affiliates.
About Hyatt Hotels
Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading
global hospitality company guided by its purpose – to care for
people so they can be their best. As of June 30, 2024, the
Company’s portfolio included more than 1,350 hotels and
all-inclusive properties in 78 countries across six continents. The
Company's offering includes brands in the Timeless Collection,
including Park Hyatt®, Grand Hyatt®, Hyatt
Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt
Place®, Hyatt House®, Hyatt Studios, and
UrCove; the Boundless Collection, including Miraval®,
Alila®, Andaz®, Thompson Hotels®, Dream®
Hotels, Hyatt Centric®, and Caption by Hyatt®;
the Independent Collection, including The Unbound Collection by
Hyatt®, Destination by Hyatt®, and JdV by Hyatt®;
and the Inclusive Collection, including Impression by
Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry®
Wellness & Spa Resorts, Secrets® Resorts & Spas,
Breathless Resorts & Spas®, Dreams® Resorts &
Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels
& Resorts®, and Sunscape® Resorts & Spas.
Subsidiaries of the Company operate the World of Hyatt® loyalty
program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation
Club®, Amstar DMC destination management services, and Trisept
Solutions® technology services. For more information, please visit
www.hyatt.com.
About Standard
International
Standard International is the parent company of The Standard
hotels. Created in 1999, The Standard hotels are known for their
pioneering design, taste-making clientele, and unrelenting
un-standard-ness. Launched originally in Hollywood, The Standard
has now opened properties in marquee locations across the globe
including in New York, Miami, London, the Maldives, Hua Hin, Ibiza,
Bangkok and Melbourne. Standard hotels in Singapore, Lisbon,
Brussels, Pattaya and Mexico are under development. The goal of
every Standard project—be it a city hotel, a seaside resort, or a
rooftop bar—is to defy convention, up the aesthetic stakes, and
deliver an experience that only The Standard can. The Standard’s
unconventional and playful sensibility combined with careful
consideration of design and service details, have established its
reputation as a pioneer in hospitality, travel, dining, and
nightlife. Standard International also owns a majority stake in the
Bunkhouse Hotels, The Peri Hotels, The StandardX and will debut its
newest luxury brand, The Manner, in 2024. Standard International
has also recently entered the branded residences space with
locations opening in Miami, Mexico City, Lisbon, Phuket and Hua
Hin. www.standardhotels.com @thestandard.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements include statements about the Company’s proposed
acquisition of Standard International, the expected timeline for
completing the acquisition, the Company’s plans for a dedicated
lifestyle group and personnel for such group, expected management
fees as a result of the acquisition, the Company’s development
pipeline, strategies, outlook, prospects or future events and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements by the use of words such as "may," "could," "expect,"
"intend," "plan," "seek," "anticipate," "believe," "estimate,"
"predict," "potential," "continue," "likely," "will," "would" and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. Such forward-looking
statements are necessarily based upon estimates and assumptions
that, while considered reasonable by us and our management, are
inherently uncertain. Factors that may cause actual results to
differ materially from current expectations include, but are not
limited to: general economic uncertainty in key global markets and
a worsening of global economic conditions or low levels of economic
growth; the rate and pace of economic recovery following economic
downturns; global supply chain constraints and interruptions,
rising costs of construction-related labor and materials, and
increases in costs due to inflation or other factors that may not
be fully offset by increases in revenues in our business; risks
affecting the luxury, resort, and all-inclusive lodging segments;
levels of spending in business, leisure, and group segments, as
well as consumer confidence; declines in occupancy and average
daily rate; limited visibility with respect to future bookings;
loss of key personnel; domestic and international political and
geopolitical conditions, including political or civil unrest or
changes in trade policy; hostilities, or fear of hostilities,
including future terrorist attacks, that affect travel;
travel-related accidents; natural or man-made disasters, weather
and climate-related events, such as earthquakes, tsunamis,
tornadoes, hurricanes, droughts, floods, wildfires, oil spills,
nuclear incidents, and global outbreaks of pandemics or contagious
diseases, or fear of such outbreaks; our ability to successfully
achieve certain levels of operating profits at hotels that have
performance tests or guarantees in favor of our third-party owners;
the impact of hotel renovations and redevelopments; risks
associated with our capital allocation plans, share repurchase
program, and dividend payments, including a reduction in, or
elimination or suspension of, repurchase activity or dividend
payments; the seasonal and cyclical nature of the real estate and
hospitality businesses; changes in distribution arrangements, such
as through internet travel intermediaries; changes in the tastes
and preferences of our customers; relationships with colleagues and
labor unions and changes in labor laws; the financial condition of,
and our relationships with, third-party owners, franchisees, and
hospitality venture partners; the possible inability of third-party
owners, franchisees, or development partners to access the capital
necessary to fund current operations or implement our plans for
growth; risks associated with potential acquisitions and
dispositions and our ability to successfully integrate completed
acquisitions with existing operations; failure to successfully
complete proposed transactions (including the failure to satisfy
closing conditions or obtain required approvals); our ability to
successfully execute our strategy to expand our management and
hotels services and franchising business while at the same time
reducing our real estate asset base within targeted timeframes and
at expected values; our ability to maintain effective internal
control over financial reporting and disclosure controls and
procedures; declines in the value of our real estate assets;
unforeseen terminations of our management and hotels services or
franchise agreements; changes in federal, state, local, or foreign
tax law; increases in interest rates, wages, and other operating
costs; foreign exchange rate fluctuations or currency
restructurings; risks associated with the introduction of new brand
concepts, including lack of acceptance of new brands or innovation;
general volatility of the capital markets and our ability to access
such markets; changes in the competitive environment in our
industry, industry consolidation, and the markets where we operate;
our ability to successfully grow the World of Hyatt loyalty program
and Unlimited Vacation Club paid membership program; cyber
incidents and information technology failures; outcomes of legal or
administrative proceedings; and violations of regulations or laws
related to our franchising business and licensing businesses and
our international operations; and other risks discussed in the
Company's filings with the SEC, including our annual reports on
Form 10-K and quarterly reports on Form 10-Q, which filings are
available from the SEC. All forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the cautionary statements set forth above. We
caution you not to place undue reliance on any forward-looking
statements, which are made only as of the date of this press
release. We do not undertake or assume any obligation to update
publicly any of these forward-looking statements to reflect actual
results, new information or future events, changes in assumptions
or changes in other factors affecting forward-looking statements,
except to the extent required by applicable law. If we update one
or more forward-looking statements, no inference should be drawn
that we will make additional updates with respect to those or other
forward-looking statements.
HHC-FIN
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240820115363/en/
MEDIA CONTACTS: Franziska Weber Hyatt
franziska.weber@hyatt.com Lara Bogossian Standard International
lara.bogossian@standardhotels.com INVESTOR CONTACTS: Adam
Rohman Hyatt adam.rohman@hyatt.com Tara Atwood Hyatt
tara.atwood@hyatt.com
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