Hyatt has officially acquired the lifestyle hotel group Standard International. What comes next?

Is this week the beginning of the end for lifestyle hotels? It depends on who you ask.

This week, Hyatt completed its asset-light acquisition (which means Hyatt will manage operations but not own the real estate) of Standard International. The still-popular 25-year-old lifestyle hotel chain includes brands such as The Standard, StandardX, Bunkhouse Hotels, and The Manner, a new luxury concept located in New York City's SoHo neighborhood.

(For those unsure about what a lifestyle hotel is: these properties focus more on design, and they feature bars and restaurants that appeal to both locals and hotel guests. One person once described them to me as "boutique hotels with much less of that annoying dim lighting in the lobby.")

The acquisition of Standard adds 22 hotels globally with a total of 2,000 rooms to Hyatt's portfolio. Over 30 projects are currently in various stages of development within the Standard International sphere and will also integrate into Hyatt. While the deal is finalized, it's still unclear when the Standard-branded hotels will be included in World of Hyatt, but Hyatt executives suggest there are ample growth opportunities for the Standard portfolio now connected to the Chicago-based hotel powerhouse.

"The development community recognizes a game changer when they see it, and the excitement about merging the ethos of The Standard and Bunkhouse brands with Hyatt's extensive network and distribution capabilities is evident," said Hyatt CEO Mark Hoplamazian in a statement this week. "Developers are just as enthusiastic about this combination as we are."

This is a significant victory for Hyatt as it continues its expansion into luxury and lifestyle hotels, but there is much discussion in the hotel community suggesting that this $335 million acquisition signifies a decline of playful, unique brands into larger conglomerates.

While none were willing to speak on the record for this article, there are many skeptics who argue that Kimpton, after its acquisition by IHG, is a shadow of its former self as the pioneer of the boutique hotel trend. Marriott's leadership has admitted that W Hotels has lost its edge over time, but they are working to regain their stature with initiatives like revitalizing properties such as W Hollywood and W New York — Union Square.

Should we start planning a farewell for everything that defines Standard, well, Standard?

Based on my own experience, entering some of the New York locations now under the Hyatt-owned Dream Hotel Group feels like showing up to a party that ended ages ago (though the newer venues in cities like Nashville are quite charming). The alarm bells ring for me when I hear about yet another trendy brand being absorbed by a conglomerate.

There are many reasons why Hyatt would seek to acquire a company like Standard International. First and foremost, it’s a lifestyle hotel brand that has remained relevant for over two decades. We can't make the same claim about Dream, so perhaps Hyatt sees this as a chance to make a renewed impact on the Manhattan lifestyle hotel market.

A Standard portfolio truly excels in this regard, featuring stylish hotels in vibrant cities worldwide, including London and Bangkok, along with a strong pipeline of more properties coming soon.

"They aim to expand the brand, correct? When you go from a portfolio of around 20 properties to 100, it’s bound to evolve," stated Daniel Lesser, CEO of LW Hospitality Advisors. "What will that transformation entail? I'm not entirely sure, but it certainly addresses a gap for Hyatt."

In recent years, Hyatt has absorbed other lifestyle brands like Thompson Hotels, Alila, and Dream. However, the Hyatt-Standard acquisition signals a growing awareness among major hotel brands that lifestyle hotels are distinct entities requiring specialized management and innovative approaches to maintain their prominence.

Instead of establishing Hyatt's expanding lifestyle division in Chicago, the company is launching a new team focused on lifestyle hotels in New York City. Amar Lalvani, the former executive chairman of Standard International, will lead this group. Standard CEO Amber Asher is anticipated to leave the company later this year, as previously reported by TPG.

This degree of independence for lifestyle hotels is already evident at Accor, which manages its majority-owned Ennismore lifestyle group (home to brands like The Hoxton and Gleneagles) as a separate entity from the main Paris-based corporation. Even Marriott's Edition brand, recognized as the world's largest hotel company's trendiest lifestyle brand, enjoys increased autonomy due to its creation in partnership with lifestyle and nightlife icon Ian Schrager.

"The lifestyle sector isn't for the timid; it demands both creativity and dedication," Lalvani remarked this week. "However, when executed correctly, it yields significant guest loyalty and impressive returns for developers. The beauty of this partnership is that Hyatt values the creativity and freedom essential for delivering our unique experiences, while we appreciate Hyatt's rich history, global reach, and top-tier commercial services."

Naturally, this is the hospitality industry, where it's often about more than simply granting creative authority to those outside headquarters. It's also about ensuring loyal customers don’t explore competitors when you lack a hotel in the area.

"Ultimately, Hyatt has had gaps to address in expanding their presence and matching the coverage of Hilton, Marriott, and IHG," Lesser stated. "The last thing any hotel company or brand family wants is for loyal travelers to seek offerings elsewhere where they don't have a product available."

As for us, we’ll be eagerly anticipating the day a World of Hyatt Globalist pass lets us skip the endless line at Le Bain in The Standard, High Line.

What? One can always dream!