Hyatt Hotels announced on Tuesday, 20 August, that it plans on acquiring lifestyle company Standard International. Including multiple luxury brands, the move would mean an important new step in Hyatt’s formation of a new dedicated lifestyle group.
Even though customary closing conditions apply, Hyatt Hotels plans on purchasing Standard International before the end of the year. A base purchase price of $150 million will be paid upon closing, with an additional budget of up to $185 million to be paid over time as additional properties enter the portfolio.
The group will include all five brands currently run by Standard International: The Standard, The Peri Hotel, Bunkhouse, The StandardX and The Manner. However, over time, branded residential projects and multiple restaurant and nightlife concepts will, little by little, enter the portfolio acquired by Hyatt.
The deal is said to be 100% asset-light, including management, franchise and license contracts for 21 open hotels with approximately 2,000 rooms. Some of those include The Standard (London), The Standard High Line (New York City), The Standard (Bangkok Mahanakhon) and boutique properties such as Hotel Saint Cecilia in Austin (Texas)and Hotel San Cristóbal in Baja California (Mexico).
“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.”
The new dedicated lifestyle group formed through the deal will be located in New York City and led by Standard International’s Executive Chairman Amar Lalvani. As the president and creative director of the lifestyle group, he will have to oversee the sharing of best practices across the different brands while assuring all separate brands maintain their own identity.
“We waited a long time to find the right company with whom to join forces,” said Lalvani. “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. I would be remiss not to express my gratitude to Hyatt for taking this bold step forward and to Sansiri who has been instrumental in supporting our efforts.”
Hyatt’s purchase of Standard International is the latest addition to its offer of lifestyle rooms, the number of which quintupled between 2017 and 2023. Hyatt is thus once again focusing on hotels becoming more than just a place to sleep, with fancy lobbies and Instagrammable rooftop bars being increasingly important for a hotel’s identity and attractiveness.
