HyattThe frenzy of shopping for new brands isn’t over yet.
The Chicago-based hotel giant plans to buy Dream Hotel Group’s smaller lifestyle hotel brand and management platform in a deal that could be worth up to $300 million, the companies said. announced on Tuesday. Dream Hotel Group hotels operate primarily in the lifestyle segment — hotels with a focus on design and fine dining. These hotels rely on locals to fill their restaurants and bars almost relying on out-of-towners to fill their guest rooms.
Dream transaction details
Dream Hotel Group operates hotels under the Dream Hotels, Chatwal Hotels and Unscripted Hotels brands throughout the Americas, Europe and Asia. The acquisition will be a big boost for Hyatt (and Hyatt’s World loyalists); it will expand the company’s presence in New York City by more than 30% by adding hotels like New York ChatwalDream Downtown, Dream Midtown and The Time New York.
The move comes after Hyatt recently struck a deal with Hotel Lindner of Germany AG to expand its European footprint. Although that deal was not a takeover, it came later Hyatt acquires Apple Leisure Group for $2.7 billion in an all-inclusive resort space.
Hyatt CEO Mark Hoplamazian said in a statement: “We are delighted to offer even more inspiring experiences and celebrations for our guests and loyal members, and bringing the value of the Hyatt network to an increasing number of discerning hotel owners and developers worldwide.” .
The deal includes a portfolio of 12 existing hotels and another 24 that are in various stages of development. The timeline of the brand integration is unclear, as The Chatwal New York is part of MarriottThe luxury hotel collection of ‘s. The acquisition is expected to close “in the coming months.”
A spokesperson for Hyatt declined to elaborate further on the specifics of the brand integration timeline.
The noisiest hotel included in the deal is The Chatwal Lodge, a resort in upstate New York two hours from New York City. Named after the founder of Dream Hotel Group, Sant Singh Chatwal, this ultra-luxury resort has only 11 guest rooms and suites, and is highly regarded for its service and food service. .
Dream Hotels’ current lineup means Hyatt will get a boost in other markets it already operates in, such as the South Beach neighborhoods of Nashville, Los Angeles and Miami. There are also Dream Hotels in Bangkok and Phuket, Thailand, and more are being rolled out to locations like Las Vegas and Doha, Qatar.
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The company is also working to bring more Chatwal resorts to Mexico, according to the Dream Hotel Group website.
Hyatt’s Strategy
Hyatt’s plan to acquire Dream Hotel Group’s lifestyle hotel division is not to fill a void but to strengthen its presence in areas the hotel company considers its strengths.
In recent months, investor analysts have often viewed Hyatt as a smart investment game. This is due to the brand’s increasing push into leisure and lifestyle hotels — which perform at their best during the pandemic, even during the worst months — and their focus on maintaining Maintain brands that attract team meetings, events and business trips.
However, Hyatt’s trend of resting has increased sharply in recent years.
Of the company Acquired Two Roads Hospitality in 2018 brought on brands such as Thompson Hotels, Alila and Joie de Vivre (currently operating as Hyatt’s JdV). The deal with Apple Leisure Group doubled Hyatt’s resort portfolio overnight and expanded its European presence by 60%. The Lindner partnership in Germany – where most hotels are expected to convert to the JdV brand – will add to that European expansion.
The partnership with Germany isn’t the only one: Hyatt teamed up with Japan’s Kiraku earlier this fall to launch a collection of hot spring ryokans (a type of Japanese inn) that will covers the architecture, cuisine, and activism of the region. That deal comes as Hyatt expands its US-based business. Health care brand Miraval.
“Our successful integration of incredible lifestyle brands like Thompson Hotels and Dream Hotel Group joining Hyatt is a perfect fit for this experience,” Hoplamazian said via email to TPG. months and work toward the best way to bring their lifestyle brands into Hyatt’s portfolio, after the deal closes. It was important for us to preserve what is unique and special about these brands, including their distinct focus on nightlife and celebratory dining and experiences.”
Structure change
When the acquisition of Dream Hotel Group closes, Hyatt will integrate the properties into the World of Hyatt network. The base price of the deal is $125 million, while an additional $175 million depends on other hotels in the development system actually opening.
Chatwal, the founder of Dream Hotel Group, will remain connected to the company as the owner of four existing hotels and two others currently in operation. Dream Hotel Group CEO Jay Stein will join Hyatt as head of Dream Hotels to direct the integration into Hyatt’s portfolio.
“Hyatt has a proven track record in preserving what makes lifestyle hotels special and is the ideal new home for our growing Dream Hotel Group brands,” said Chatwal. know in a statement. “As the owner of Dream Hotel Group properties, I look forward to the next part of our journey and am confident that there is a bright future ahead for hotels, owners, guests and properties. member of our team as part of the Hyatt family.”
