Hyatt buys Standard and adds its leader

CHICAGO – Hyatt Hotels Corp. is buying the brands of lifestyle company Standard International, including The Standard and Bunkhouse Hotels, for a base purchase price of $150 million, with up to an additional $185 million over time as additional properties enter the portfolio.

Stabilized fees associated with the base purchase price are anticipated to be approximately $17 million and, to the extent the contingent purchase price is paid, additional stabilized fees are anticipated to be up to approximately $30 million.

With this transaction, Hyatt will form a new dedicated lifestyle group that will be headquartered in New York City and led by Standard International’s Executive Chairman Amar Lalvani. He will take on the role of president and creative director, overseeing the integration of the brands to be housed within the group while focusing on further growth of each lifestyle brand.

Amar Lalvani will take on the role of president and creative director of a new dedicated lifestyle group, overseeing the integration of the brands to be housed within the group while focusing on further growth of each lifestyle brand.

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Lalvani led the global development of W Hotels and then in 2010 partnered with André Balazs on The Standard brand. In 2013, Lalvani formed Standard International and acquired The Standard brand from Balazs and followed that with an acquisition of a majority stake in The Bunkhouse Group from its founder Liz Lambert and her partners.

Hyatt added that the new lifestyle group will be made up of the talented Standard International team as well as Hyatt colleagues with more details about the lifestyle group shared following the closing. There was no specific mention of Standard CEO Asher Amber joining the Hyatt team.

The acquired portfolio will be 100% asset-light and includes management, franchise and license contracts for 21 open hotels with approximately 2,000 rooms, including The Standard, London, The Standard, High Line in New York City, The Standard, Bangkok Mahanakhon and boutique hotels like Hotel Saint Cecilia in Austin, Texas and Hotel San Cristóbal in Baja California, Mexico. Following the closing of the transaction, Hyatt plans to integrate these hotels into World of Hyatt.

Hyatt has now quintupled the number of lifestyle rooms in its global portfolio since 2017. The transaction is anticipated to close later this year.

In addition to The Standard and Bunkhouse Hotels brands, Standard International’s brand portfolio includes Peri Hotels and its two newest additions, The StandardX, which launched this month in Melbourne, Australia, and The Manner, which launches next month in Soho, New York. Beyond its hotel brands, the portfolio includes restaurant and nightlife concepts including The Boom Boom Room, The Standard Grill, The Standard Biergarten, Café Standard, Lido Bayside Grill, Jo’s Coffee as well as rooftop venues including Le Bain, Decimo, Sweeties, UP, Ojo and Sky Beach.

The acquisition includes more than 30 projects with a signed agreement or letter of intent, including new properties expected to open over the next 12 months: The Standard, Pattaya Na Jomtien, The StandardX, Bangkok Phra Arthit, as well as Bunkhouse Hotels Saint Augustine and Hotel Daphne. Standard International has also developed a residential business with Standard Residences under development in Miami, Lisbon, Phuket, Hua Hin and Mexico City as well as completed Bunkhouse Residences at the Hotel Saint Cecilia in Austin.

Upon closing, the sale will cap the investment for Sansiri PLC, which acquired a majority position in Standard International in 2017 and facilitated the company’s international expansion. Sansiri will continue to own several properties that will be managed or franchised under the acquired brands.