Hyatt Hotels Corporation announced it is acquiring Standard International, the parent company of The Standard and Bunkhouse Hotels brands. Standard International focuses on lifestyle properties that feature “unrelenting un-standard-ness.”
As part of the transaction Hyatt has plans to form a new, dedicated lifestyle group, which will be headquartered in New York City. The group will be led by Standard International’s Executive Chairman Amar Lalvani.
The new group is expected to focus on experience creation, design, marketing, programming, public relations, restaurants, nightlife and entertainment while leveraging Hyatt’s operational and loyalty infrastructure, including its World of Hyatt program. All of the groups hotels are expected to be integrated into World of Hyatt after the deal is closed.
The press release stated that this acquisition will help “continue Hyatt’s evolution to a brand- and experience-driven company.” Once the acquisition closes, 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 you may not know Lalvani’s name, you do know his work. He led the global development of W Hotels before partnering on The Standard brand with André Balazs in 2010. He then acquired the brand from Balazs in 2013 and started Standard International.
Mark Hoplamazian, Hyatt President and Chief Executive Officer, had this to say about the acquisition:
“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. 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.”
Hyatt has gone on quite the spree lately, adding the me and all hotels brand to its portfolio back in June. Standard International is expected to add approximately 2,000 additional rooms to the company’s portfolio.
Standard International Properties
Currently, there are 21 operational properties under the Standard International portfolio including:
- The Standard, London
- The Standard, High Line (New York City)
- The Standard, Bangkok Mahanakhon
- Hotel Saint Cecilia (Austin)
- Hotel San Cristóbal (Baja California)
The group also operates a variety of restaurants and nightclubs including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill, and Jo’s Coffee.
More than thirty additional properties are in the pipeline and are expected to open over the next twelve months. The transaction is expected to close later this year. 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.
Summary
Hyatt is acquiring Standard International for roughly $300 million. The acquisition will add over twenty hotels to the World of Hyatt portfolio with more than thirty additional properties currently in the works. This is the second major brand Hyatt has added after acquiring me and all hotels back in June.
(Some images courtesy Hyatt Hotels Corporation)
