In a strategic move set to redefine the landscape of lifestyle hospitality, Hyatt Hotels Corporation has announced its acquisition of Standard International, the parent company behind the iconic hotel brands The Standard and Bunkhouse Hotels. This acquisition, valued at an initial $150 million with potential future payments, signifies Hyatt’s aggressive push to dominate the lifestyle

In a strategic move set to redefine the landscape of lifestyle hospitality, Hyatt Hotels Corporation has announced its acquisition of Standard International, the parent company behind the iconic hotel brands The Standard and Bunkhouse Hotels. This acquisition, valued at an initial $150 million with potential future payments, signifies Hyatt’s aggressive push to dominate the lifestyle sector, a niche it has been methodically expanding into since 2017.

This monumental deal, anticipated to close later this year, will see Hyatt expand its portfolio and solidify its reputation as a leader in the experience-driven hospitality industry. The acquisition is poised to enhance Hyatt’s already robust global distribution network, further integrating Standard International’s eclectic and celebrated properties into the award-winning World of Hyatt loyalty program, which currently boasts a membership of over 48 million.

Formation of a New Lifestyle Powerhouse

The acquisition will result in the formation of a new, dedicated lifestyle group headquartered in New York City. This group will be led by Amar Lalvani, the current Executive Chairman of Standard International, who will assume the role of President & Creative Director of the newly formed entity. Lalvani’s expertise in lifestyle hospitality is widely recognized, having previously spearheaded the global development of W Hotels before acquiring and transforming The Standard and Bunkhouse brands into globally celebrated entities.

Under Lalvani’s leadership, the new lifestyle group will maintain and enhance the distinctiveness that has made The Standard and Bunkhouse hotels synonymous with cutting-edge design, immersive experiences, and trendsetting programming. The group will leverage Hyatt’s operational prowess and extensive loyalty infrastructure while assuming leadership over critical functions, including design, marketing, programming, public relations, and entertainment.

“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 of 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.”

A Portfolio of Iconic Properties

The acquisition includes management, franchise, and license contracts for 21 open hotels with approximately 2,000 rooms. Among these properties are internationally acclaimed destinations such as The Standard, London, The Standard, High Line in New York City, and Bangkok Mahanakhon. Boutique treasures like Hotel Saint Cecilia in Austin, Texas, and Hotel San Cristóbal in Baja California, Mexico, will now fall under Hyatt’s expansive umbrella.

Hyatt’s strategic integration of these properties into the World of Hyatt loyalty program is expected to drive substantial growth in customer engagement and brand loyalty. The Standard’s reputation for hosting high-profile events, such as the Met Gala afterparty, combined with Hyatt’s global reach, is anticipated to create a synergy that will elevate the guest experience to unprecedented levels.

A Successful Exit for Sansiri PLC

The transaction also marks the culmination of a successful investment for Sansiri PLC, which acquired a majority position in Standard International in 2017. Sansiri played a crucial role in facilitating Standard International’s international expansion, significantly enhancing the brand’s global footprint. Despite the sale, Sansiri will retain ownership of several properties, which will continue to be managed or franchised under the acquired brands.

Lalvani expressed his satisfaction with the acquisition, stating, “We waited a long time to find the right company with whom to join forces. 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.”

Future Growth and Development

Beyond its existing portfolio, the acquisition includes over 30 projects with signed agreements or letters of intent. These projects are expected to add significant value to Hyatt’s lifestyle segment, with new properties scheduled to open over the next 12 months. Noteworthy developments include The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, Bunkhouse Hotels Saint Augustine, and Hotel Daphne.

Standard International’s portfolio also includes an expanding residential business, with Standard Residences under development in Miami, Lisbon, Phuket, Hua Hin, and Mexico City. Additionally, the Bunkhouse Residences at the Hotel Saint Cecilia in Austin represent the successful expansion of lifestyle hospitality into the residential market.

This acquisition underscores Hyatt’s commitment to an asset-light strategy. The company’s focus on management, franchise, and licensing agreements rather than property ownership aligns with its long-term growth objectives. Stabilized fees associated with the base purchase price are anticipated to generate approximately $17 million annually, with potential for up to $30 million in additional fees if contingent purchase prices are realized.

Conclusion: A New Era in Lifestyle Hospitality

Hyatt’s acquisition of Standard International is more than just a business transaction; it is a bold statement of intent. By integrating Standard International’s brands and expertise into its global network, Hyatt is positioning itself at the forefront of lifestyle hospitality. This move will enhance Hyatt’s portfolio and elevate the guest experience, offering unique, trendsetting destinations that cater to the evolving demands of today’s travellers.

As the hospitality industry continues to evolve, Hyatt’s strategic expansion into the lifestyle sector is a clear indication of its commitment to growth, innovation, and excellence. The acquisition of Standard International is a testament to Hyatt’s vision for the future – where experience, creativity, and global reach come together to create extraordinary guest experiences.

Written by: Supaporn Pholrach

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