After weeks of speculation, Hyatt announced on Tuesday that it would be acquiring Standard International, the parent company of The Standard and Bunkhouse Hotels brands. The deal, expected to close later this year, involves a base purchase price of $150 million, with an additional $185 million to be paid over time as more hotels are added to the portfolio.
The transaction will initially include the management, franchise, and licensing contracts for 21 hotels, including iconic properties like The Standard London and The Standard High Line in New York. As part of the acquisition, Hyatt will be establishing a lifestyle group based in New York, with Amar Lalvani, the current executive chairman of Standard International, leading as the president and creative director.
Standard International’s flagship brand, The Standard, was founded by renowned hotelier Andre Balazs in 1999. In 2013, Amar Lalvani formed Standard International after acquiring The Standard brand from Balazs and obtaining a majority stake in boutique hotel company Bunkhouse Group. The Standard currently operates eight hotels in various locations around the world, while Bunkhouse has nearly a dozen properties in Texas, California, Kentucky, and Mexico.
In addition to The Standard and Bunkhouse, Standard International’s brand portfolio includes Peri Hotels and The StandardX, a rebellious younger sibling brand that was introduced last November. The company has also revealed plans for The Manner, a new luxury concept set to debut in New York’s SoHo neighborhood next month.
The acquisition by Hyatt comes at a time when Standard International is looking to expand further, with over 30 projects in the pipeline, some of which are expected to open within the next year. These upcoming projects include The Standard Pattaya Na Jomtien and The StandardX Bangkok Phra Arthit in Thailand, as well as two Bunkhouse hotels in Houston – the Hotel Saint Augustine and Hotel Daphne.
Overall, the acquisition of Standard International by Hyatt marks a significant move in the hospitality industry, bringing together two prominent players to create a stronger presence in the lifestyle hotel sector. With a focus on innovation and expansion, the newly formed partnership is poised to make a lasting impact on the global hospitality landscape.
