Hyatt officially owns lifestyle hotel group Standard International. Now what?
Does this week mark the day the lifestyle hotel died? Depends on who you ask.
Hyatt officially closed this week on its asset-light takeover (meaning Hyatt will own the operations but not the real estate) of Standard International. Standard, the still-trendy-at-25 chain of lifestyle hotels, encompasses brands like The Standard, StandardX, Bunkhouse Hotels and The Manner, a new luxury concept in New York City’s SoHo neighborhood.
(A refresher for those wondering what even is a lifestyle hotel: They tend to be properties leaning more into design, bars and restaurants that locals want to get into as much as the guests staying at the hotel. Someone also once described them to me as "boutique hotels with way less of the annoying dim lighting in the lobby.")
The Standard takeover adds 22 hotels worldwide with a combined 2,000 rooms to the Hyatt network. More than 30 projects are in various stages of development in the Standard International orbit and will also become part of Hyatt. While the deal is closed, it isn’t clear when the Standard-affiliated hotels will join World of Hyatt, but Hyatt leaders indicate there are plenty of growth opportunities for the Standard portfolio now tethered to the Chicago-based hotel giant.
“The development community knows an industry game changer when they see it, and the enthusiasm for bringing together the ethos of The Standard and Bunkhouse brands and the power of Hyatt’s network and distribution system is palpable,” Hyatt CEO Mark Hoplamazian said in a statement this week. “Developers love this combination as much as we do.”
It’s a major win for Hyatt’s continued push into luxury and lifestyle hotels, but there’s plenty of chatter in the hotel orbit that this $335 million takeover is further erosion of fun, whimsical brands into major conglomerates.
While none were willing to go on the record for this story, you’ll find plenty of cynics who say that Kimpton, post-IHG takeover, is nothing like its heyday as the birthplace of the boutique hotel movement. Marriott leadership has acknowledged W Hotels lost its cool factor somewhere along the way, but they have made strides in righting the ship with moves like reimagining properties like W Hollywood and W New York — Union Square.
So, should we be planning for a funeral for everything that makes Standard, well, Standard?
From personal experience, stepping foot into some of the New York properties in the now Hyatt-owned Dream Hotel Group portfolio feels like arriving at a party that ended several years ago (though the newer properties in cities like Nashville are lovely). You might say the warning bells go off when I hear of yet another cool brand getting gobbled up by one of the conglomerates.
There are plenty of reasons why Hyatt would want to acquire a company like Standard International. For starters, it’s a lifestyle hotel company that remains relevant after more than two decades in the business. We can’t say the same about Dream, so perhaps there’s an element of Hyatt wanting another elevated crack at the Manhattan lifestyle hotel scene.
A Standard portfolio more than delivers on that front with very trendy hotels around the world in cities like London and Bangkok, as well as a robust portfolio of more along the way.
“They want to grow the brand, right? When you're dealing with a portfolio that's only about 20 assets, and then they go to 100, invariably, it's going to change,” LW Hospitality Advisors CEO Daniel Lesser said. “What is that going to look like? I'm not really sure, but it definitely fills a hole for Hyatt.”
In recent years, Hyatt has gobbled up other lifestyle brands like Thompson Hotels, Alila and Dream. But there are signs that the Hyatt-Standard deal is the latest example of major hotel brands recognizing lifestyle hotels are a different kind of entity that require a different kind of management and creative structure to keep them in the headlines.
Rather than base Hyatt’s growing lifestyle team in Chicago, the company is parking a new group dedicated to lifestyle hotels in New York City. The team will be helmed by Amar Lalvani, former executive chairman of Standard International. Standard CEO Amber Asher is expected to depart the company sometime later this year, TPG previously reported.
This quasi-autonomy to lifestyle hotels is already seen at Accor, which has its majority-owned Ennismore lifestyle group (which includes brands like The Hoxton and Gleneagles) as an offshoot from the main Paris-based conglomerate. Even Marriott’s Edition brand, seen as the world’s largest hotel company’s most buzzworthy lifestyle brand, has had more autonomy due to its launch in partnership with lifestyle and nightlife maven Ian Schrager.
“The lifestyle segment isn’t for the faint of heart, it takes creativity and commitment,” Lalvani said in a statement this week. “But if you get it right, you reap the benefits of outsized guest loyalty and outsized developer returns. The beauty of this combination is that Hyatt respects the creativity and freedom required to deliver the experiences we do, and we respect the value of Hyatt’s storied history, global infrastructure and best-in-class commercial services.”
Of course, this is the hotel industry, and it often comes down to more than just giving creative power to someone outside of company headquarters. It’s more about not leaving room for your loyal customers to experience the competition where you don’t have a hotel.
“At the end of the day, Hyatt has had some holes to fill in terms of expanding their footprint and having as much coverage as Hilton, Marriott and IHG,” Lesser said. “The last thing any hotel company or hotel brand family wants is to have a loyal traveler go somewhere where they don't have a product offering for them.”
As for us, we’ll be waiting to see if there’s ever a day when we see the arrival of a World of Hyatt Globalist bypass for the never-ending line to get into Le Bain at The Standard, High Line.
What? We can dream!
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.