Hyatt to acquire lifestyle hotel group Standard International for up to £260m

Hyatt Hotels has announced plans to acquire Standard International, parent company of the Standard and Bunkhouse Hotels brands, to create a new lifestyle hospitality group.

Hyatt will pay a base purchase price of $150m (£115m) plus up to an additional $185m (£142m) over time as more properties join the portfolio.

The deal will initially cover 21 hotels with around 2,000 rooms, including the Standard, London and the Standard, High Line in New York.

As part of the transaction, Hyatt will create a new lifestyle group that will be headquartered in New York.

It will be led by Standard’s current executive chairman Amar Lalvani, who will take the new role of president and creative director of the group and oversee the integration of the new brands.

Lalvani led the global development of W Hotels and began working with Andre Balazs to develop the Standard brand in 2010. In 2013, he formed Standard International and acquired the business from Balazs.

The group’s brands including the boutique Peri Hotel, the luxury Manner and StandardX, which was described as the “rebellious younger sibling” of its parent brand.

“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.

Hyatt said the deal would see it move into becoming a more “brand and experience-driven company” as it took on brands that “turn the status quo on its head”.

Mark Hoplamazian, president and chief executive at Hyatt, said: “These properties truly drive the zeitgeist, creating destinations unto themselves with celebrated and talked-about programming and events, such as the Met Gala afterparty.”

Standard International has more than 30 properties with a signed agreement or letter of intent, including hotels expected to open over the next 12 months.

It also has a residential business with Standard Residences under development in Miami, Lisbon, Phuket, Hua Hina and Mexico City.

Following the close of the transaction, Hyatt plans to integrate the hotels into its World of Hyatt loyalty plan, which has 48 million members.

The deal is expected to close later this year, subject to customary closing conditions.

Photo: Felix Mizioznikov/Shutterstock