Hyatt Hotels said on Tuesday that it is acquiring Standard International, the parent company of the Standard and Bunkhouse Hotels brands to create a new lifestyle hospitality brand.
The company will purchase the boutique hotel operator's brands and most of its affiliates for a base price of $150 million (€135 million), with up to an additional $185 million (€166 million) as more properties enter the portfolio.
Standard International
Hyatt further expects stabilised fees of around $17 million (€15.2 million) and additional fees of about $30 million (€26.97 million).
Moelis & Company LLC served as financial advisor and Venable LLP acted as legal advisor to Hyatt for the deal, which is expected to close later this year.
Portfolio
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 hotels 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 its portfolio.
'Loyal Following'
“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.”
Article by Reuters, additional reporting by Hospitality Ireland.
