Hyatt Acquires Standard Hotel Brands in $335M Deal
By Isabelle Durso August 21, 2024 12:14 pm
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Hyatt Hotels Corporation will acquire Standard International’s major hotel brands in a deal that will value Standard as high as $335 million, the company announced on Tuesday.
As part of the deal, which is set to close later this year, Hyatt will pay at least $150 million for 21 of Standard’s brands, including the Standard, Bunkhouse Hotels and Peri Hotels brands, Hyatt said. Hyatt will also pony up an additional $185 million over time for more than 30 new projects as part of the acquisition.
Those properties include approximately 2,000 rooms at Standard’s hotels in cities such as New York, Austin, London and Bangkok. Once the transaction closes, Hyatt plans to integrate those sites into its portfolio.
“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,” Hyatt CEO Mark Hoplamazian said in a statement. “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.”
Spokespeople for Hyatt and Standard did not immediately respond to requests for further comment.
Amar Lalvani, Standard’s executive chairman who formed the company in 2013, will head up a new lifestyle lodging group that Hyatt’s launching as part of the deal. The group will be headquartered in New York.
“We waited a long time to find the right company with whom to join forces,” Lalvani said in a statement. “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.”
Bangkok-based developer Sansiri — which acquired a majority stake in Standard in 2017 — will sell its shares to Hyatt as part of the deal but continue to own several properties managed under the Standard brands, Hyatt said.
In September, Standard is set to launch The Manner, a new luxury hotel in SoHo at 60 Thompson Street. The company secured $65 million of acquisition financing in February 2023 for its purchase of the boutique hotel, Commercial Observer previously reported.
Isabelle Durso can be reached at idurso@commercialobserver.com.
