Hyatt to acquire Standard International and its brands

Hyatt Hotels announced the planned acquisition of the brands and most of the affiliates of pioneering lifestyle company Standard International, parent company of The Standard and Bunkhouse Hotels brands. This move enhances Hyatt’s position as the leader in the industry’s premier lifestyle space, building on both its organic growth and a series of acquisitions that quintupled the number of lifestyle rooms in Hyatt’s global portfolio between 2017 and 2023. The transaction is anticipated to close later this year, subject to customary closing conditions. With this transaction, Hyatt will form a new dedicated lifestyle group that will be headquartered in New York City. Upon closing, the sale will cap a successful 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. Upon closing, 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. 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. In connection with the transaction, Moelis & Company LLC served as financial advisor to Hyatt and Venable LLP acted as its legal advisor.