Hyatt Hotels Corporation has announced the successful acquisition of Standard International, the parent company of The Standard and Bunkhouse Hotels brands. This move marks a significant enhancement to Hyatt’s position in the lifestyle hospitality sector, building upon a series of strategic acquisitions and organic growth that have seen its lifestyle room portfolio quintuple between 2017 and 2023.
The acquisition encompasses an asset-light portfolio, including management, franchise, and licence agreements for 22 existing hotels, which collectively feature approximately 2,000 rooms. Notable properties within this portfolio include The Standard in London, The Standard, High Line in New York City, The Standard, Bangkok Mahanakhon, and The Manner, which recently opened in SoHo and hosted some of the most exclusive afterparties during New York Fashion Week.
Future developments from the acquisition include upcoming openings such as The Standard, Singapore, and Bunkhouse’s Hotel Saint Augustine in Houston, as well as The StandardX in Bangkok Phra Arthit. These new establishments will continue to deliver the immersive experiences for which Standard International is renowned. Additionally, the acquisition includes a strong residential component, with developments of Standard Residences planned in Miami, Lisbon, Phuket, Hua Hin, Mexico City, and Tulum, along with completed Bunkhouse Residences at Hotel Saint Cecilia in Austin, Texas.
Hyatt’s acquisition also involves more than 30 future projects that have signed agreements or letters of intent, as well as new initiatives inspired by the announcement of the acquisition. Mark Hoplamazian, President and Chief Executive Officer of Hyatt, remarked on the enthusiasm within the development community for the combination of The Standard and Bunkhouse ethos with Hyatt’s extensive network and distribution system.
As part of this strategic expansion, Hyatt is set to launch a dedicated Lifestyle group, which will be based in New York City with additional offices in Austin and Bangkok. This group will be led by Amar Lalvani, former Executive Chairman of Standard International. Lalvani stated, “The lifestyle segment isn’t for the faint of heart; it takes creativity and commitment. However, getting it right can yield significant guest loyalty and developer returns.”
Hyatt continues to see growth across all its segments, boasting the largest collection of luxury all-inclusive resorts worldwide. Its select service portfolio represents 50% of its pipeline as of the second quarter of 2024, making it a crucial driver for expanding Hyatt-branded properties into new markets. The company also plans to announce a new luxury group with dedicated leadership focused on enhancing the experiences of guests at the highest level of luxury.
The shift towards an asset-light business model has proven successful for Hyatt, and the company is evolving its organisational structure to better serve guests, customers, owners, and shareholders alike. Hoplamazian emphasised that this transition is not about favouring one segment over another but aligning resources to provide exceptional care across the entire portfolio.
Since 2017, Hyatt’s growth has been impressive, with the number of properties increasing by 86%. Additionally, the number of members in the World of Hyatt loyalty programme has tripled, with room night penetration for these members rising significantly.
In this release, “Hyatt” is used for convenience to refer to Hyatt Hotels Corporation and/or its affiliates.