Hyatt to buy growing lifestyle hotel giant Standard International for as much as $335 million
The luxury and lifestyle hotel sector continues to be the bread and butter for Hyatt.
On Tuesday, the Chicago-based hotel giant announced plans to acquire New York City-based Standard International and most of its affiliates for a base price of $150 million. Standard International's acquired portfolio, which includes The Standard and Bunkhouse Hotels brands, encompasses 21 open hotels.
More than 30 properties are in various stages of development, and Hyatt's takeover could cost an additional $185 million as more of these hotels open. Standard's orbit also includes the new StandardX brand and The Manner, an upcoming luxury hotel in New York City's SoHo neighborhood.
On the loyalty front, all Standard International properties included in the deal will be integrated into the World of Hyatt network.
"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. "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."
Rumors of the potential acquisition emerged late last month. Some of Standard's best-known properties include The Standard, High Line, in New York City and The Standard, Bangkok Mahanakhon. The Standard takeover gives Hyatt's robust lifestyle hotel push a significant shot in the arm, as Hyatt's current lifestyle brand lineup includes Dream Hotels, Thompson Hotels, Andaz and Alila. Hyatt's lifestyle hotel room count already quintupled between 2017 and 2023, and the company acquired the Mr & Mrs Smith luxury and lifestyle hotel booking platform last year.
The Standard takeover is expected to close later this year, and the plan is to create a dedicated lifestyle group based in New York City. Amar Lalvani, executive chairman of Standard International, will be the new head of Hyatt's lifestyle division — a similar structure to how Hilton made Kevin Osterhaus, the president of Graduate Hotels, its president of global lifestyle brands following the Graduate acquisition.
"We waited a long time to find the right company with whom to join forces," Lalvani said in the 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. We have a shared vision for the enormous potential that still lies ahead."
This structure signals big hotel conglomerates like Hyatt appear to recognize the best approach to navigating the lifestyle hotel scene is by leaving creative forces largely intact. Brands like Marriott's W seemed to stumble once they strayed far from the original design and creative teams, and recent big brand acquisitions signal an industry push to avoid similar mishaps.
For example, Accor's Ennismore acquisition largely keeps brand leaders in charge of operating their offerings, such as Gleneagles, Delano and SLS. Hyatt's announcement Tuesday afternoon indicates the new lifestyle group will be made up of "the talented Standard International team as well as Hyatt colleagues."
However, the announcement didn't mention Amber Asher, the current CEO of Standard International — raising eyebrows that this might signal her departure from the company. Asher and Standard are among the few examples in the hotel industry of a woman holding the top job at a hotel brand.
"After 13 years with the company, including the last three years as CEO driving its growth, Amber Asher has decided to pursue new opportunities after staying on for a transitional period to support the team and ensure a smooth transition," a Standard International spokesperson told TPG following initial publication of this story.
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