The luxury and lifestyle hotel segment continues to be Hyatt’s main source of revenue.
On Tuesday, the Chicago-based hotel giant announced plans to acquire New York City-based company International standards and most of its affiliates for a base price of $150 million. The portfolio acquired by Standard International, which includes the The Standard and Bunkhouse Hotels brands, comprises 21 operating hotels.
More than 30 properties are in various stages of development, and Hyatt’s takeover could cost an additional $185 million as more of those hotels open. Standard’s pipeline also includes the new StandardX brand and The Manner, a luxury hotel coming to New York City’s SoHo neighborhood.
“The team behind Standard International has created a unique and award-winning portfolio of brands and properties that have upended the status quo and garnered a loyal following among the most discerning lifestyle guests over the past 25 years,” Mark Hoplamazian, Hyatt’s chief executive officer, said in a statement. “These properties truly capture the spirit of the times, creating destinations in their own right with acclaimed and talked-about programming and events, such as the Met Gala after-party. We are thrilled to welcome the Standard International properties and team to the Hyatt family with our newly formed lifestyle group and leverage their excellence, creativity, culture and innovation.”
Rumors of a possible buyout appeared late last month. Some of the most famous features of Standard include Standard, Highwayin New York City and Standard, Bangkok Mahanakhon. The acquisition of Standard gives Hyatt’s aggressive lifestyle hotel strategy a significant boost, as Hyatt’s current lifestyle brand portfolio includes Dream HotelThompson Hotels, Andaz and Alila. Hyatt’s lifestyle hotel room count has increased fivefold from 2017 to 2023, and the company has acquired Luxury hotel and lifestyle booking platform Mr & Mrs Smith last year
The Standard takeover is expected to close by the end of the 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 structure similar to how Hilton brought in Kevin Osterhaus, president of Graduate Hotels, to become president of global lifestyle brands. after acquiring Graduate.
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“We have waited a long time to find the right company to partner with,” Lalvani said in a statement. “In choosing Hyatt, we are tapping into a strong global infrastructure and a loyal customer base. I am proud that our team has realized the potential we saw in The Standard and Bunkhouse Hotels, and honored that Hyatt values the uniqueness of our brands, properties and — most importantly — our people. We share a vision of the tremendous potential that lies ahead.”
This structure signals that large hotel groups like Hyatt seem to realize that the best approach to navigating the lifestyle hotel landscape is to keep the creative force intact. Brands like Marriott’s W seem to have stumbled when they strayed from their original design and creative teams, and recent major brand acquisitions signal an industry effort to avoid similar mishaps.
Accor’s acquisition of Ennismore largely leaves the brand leaders to continue operating their properties, such as Gleneagles, Delano and SLS. Hyatt’s announcement on Tuesday afternoon said the new lifestyle group will include “the talented Standard International team as well as Hyatt colleagues.”
The announcement, however, did not mention Amber Asher, the current CEO of Standard International. TPG reached out to Hyatt and Standard for comment on Asher’s future at Hyatt but did not receive a response in time for publication.
On the loyalty front, all Standard International properties participating in this agreement will be integrated into the World of Hyatt network.
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