The Standard is part of a category of hotels that Hyatt and all major groups covet. Hyatt’s CEO has previously said adding luxury and lifestyle brands can create a “network effect,” driving loyalty program growth and engagement.
Hyatt Hotels said it planned to buy the brands of Standard International, owner of 21 open hotels across five hospitality brands, including the luxury lifestyle brand The Standard.
Hyatt will pay a base purchase price of $150 million, with up to an additional $185 million over time as additional properties enter the portfolio. Standard International has more than 30 projects with a signed agreement or letter of intent.
The companies expect the deal to close later this year, subject to approvals.
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Hyatt confirmed that it will acquire all five brands that Standard International runs: The Standard, The Peri Hotel, Bunkhouse, The StandardX, and The Manner.
Hyatt will not acquire any physical assets. It’s only buying the management, franchise, and license contracts for hotels with approximately 2,000 rooms. Branded residential is Standard International’s latest push, with the group is already selling homes in Midtown Miami, Lisbon, Thailand, and Portugal. Hyatt will also take that on.
Since 2017, Sansiri, a luxury real estate developer based in Thailand, has been Standard International’s majority shareholder.
“The sale will cap a successful investment for Sansiri, which acquired a majority position in Standard International in 2017 and facilitated the company’s international expansion,” Hyatt said in a release. “Sansiri will continue to own several properties that will be managed or franchised under the acquired brands.”
“A Network Effect” With Lifestyle Hotels
The Standard and related brands are part of a category of hotels that Hyatt and all major hotel groups increasingly covet. While a typical hotel is just a place to sleep, “luxury lifestyle” hotels are boutique-like places where the lobby looks like a modern art gallery and the rooftop bar serves drinks with names you can’t pronounce.
In the past six years, Hyatt has quadrupled the number of lifestyle rooms in its portfolio, and Standard International will boost that level further.
By adding properties, there’s a “network effect.’ The more Instagrammable hotels an operator has, the more well-to-do people want to stay there and book directly.
Hyatt’s New Lifestyle Group
Hyatt said it would form a new “dedicated lifestyle group’ led by Standard International’s Executive Chairman Amar Lalvani. In the new role of president and creative director of the lifestyle group, Lavani will oversee the sharing of best practices across brands while maintaining each brand’s separate identity.
Before founding Standard International with André Balazs, Lavani led the global development of W Hotels.
Moelis acted as financial advisor to Hyatt on the deal.
