Hyatt Hotels Corp. has announced plans to acquire Standard International, the parent company of The Standard and Bunkhouse Hotels brands, as well as its brands and most of its subsidiaries. Upon completion of the deal, Hyatt will pay a base purchase price of $150 million, with up to $185 million to be added over time as the company adds more hotels to its portfolio.
Subject to approvals, the transaction is expected to close later this year.
This move will allow Hyatt to strengthen its position in the premium lifestyle segment, building on both organic growth and a series of acquisitions that have increased the number of lifestyle rooms in Hyatt’s global portfolio fivefold between 2017 and 2023.
As part of the deal, Hyatt will create a new, dedicated lifestyle group based in New York City. The new group will consist of the Standard International team and Hyatt team members. Led by Amar Lalvani, Executive Chairman of Standard International, the lifestyle group will leverage Hyatt’s operations and loyalty infrastructure while providing 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 will lead the integration of the brands while ensuring and driving the integrity, innovation, creativity and growth of each brand.
The acquired portfolio will be entirely asset-light and includes management, franchise and licensing agreements for 21 open-plan hotels with approximately 2,000 rooms, including The Standard, London, The Standard, High Line in New York City, The Standard, Bangkok Mahanakhon and boutique hotels such as Hotel Saint Cecilia in Austin, Texas and Hotel San Cristóbal in Baja California, Mexico.
Once the transaction is complete, these hotels become members of World of Hyatt, Hyatt’s loyalty program.
Hyatt has diversified and expanded its offering through a series of acquisitions. The company expanded its presence in the luxury segment with the acquisition of Mr & Mrs Smith for £53 million in April 2023. Earlier this year, Hyatt added me and all hotels from Linder Hotels AG, the family-run German hotel company, to its portfolio of brands, with the aim of expanding into newer markets across Europe. In July, World of Hyatt entered into an exclusive alliance with Under Canvas, the outdoor hospitality company, giving World of Hyatt members access to 13 Under Canvas outdoor resorts in the US.
In addition to The Standard and Bunkhouse Hotels brands, Standard International’s portfolio also includes Peri Hotels and two new additions, The StandardX (which opened in Melbourne earlier this month) and The Manner (which will open in Soho, New York in September). Standard International’s portfolio also includes restaurant and nightlife concepts.
With the deal completed, the sale will cap the investment of Sansiri PLC, which acquired a majority stake in Standard International in 2017 and supported the company’s international expansion. Sansiri will retain ownership of several properties managed or franchised under the acquired brands.
“The team behind Standard International has created a unique portfolio of brands and hotels that challenge the status quo and have maintained a loyal following among lifestyle guests for 25 years,” said Mark Hoplamazian, President and CEO of Hyatt. “These hotels capture the spirit of the times and create destinations of their own with celebrated and highly acclaimed programs and events like the Met Gala after-party. We are thrilled to welcome the Standard International hotels and team to the Hyatt family with the newly created Lifestyle group and to benefit from their ingenuity, 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, and 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 Hotel Saint Cecilia in Austin, Texas.
Prior to founding Standard International, Lalvani led the development of W Hotels. In 2010, he co-founded The Standard brand with André Balazs. In 2013, Lalvani founded Standard International and acquired The Standard brand from Balazs. He then acquired a majority stake in The Bunkhouse Group from founder Liz Lambert and her partners. Lalvani led the transition of both companies from founder-led startups to global brands by developing pioneering hotels.
“We have waited a long time to find the right company to partner with. Choosing Hyatt gives us a strong global infrastructure and a loyal guest base,” said Lalvani. “We share a shared vision for the potential that lies ahead. I would like to express my gratitude to Hyatt for taking this bold step forward and to Sansiri for supporting our efforts.”
Moelis & Company LLC acted as financial advisor to Hyatt and Venable LLP acted as legal advisor.
