Hyatt to acquire expanding lifestyle hotel powerhouse Standard International for up to $335 million

The luxury and lifestyle hotel segment remains a core focus for Hyatt.

On Tuesday, the Chicago-based hotel giant revealed its intention to purchase New York City’s Standard International along with most of its affiliates for an initial sum of $150 million. The portfolio being acquired includes 21 operational hotels under The Standard and Bunkhouse Hotels brands.

With over 30 properties currently in various stages of development, Hyatt's acquisition could incur an additional $185 million as these hotels come online. Standard also encompasses the new StandardX brand and The Manner, an upcoming luxury hotel located in New York City's SoHo neighborhood.

In terms of loyalty programs, all Standard International properties included in the acquisition will be added to the World of Hyatt network.

"The team behind Standard International has built an exceptional and award-winning collection of brands and properties that challenge conventional norms and have garnered a devoted following among discerning lifestyle guests for the past 25 years," stated Hyatt CEO Mark Hoplamazian in a statement. "These venues truly capture the cultural moment, establishing themselves as destinations with renowned events and programming, such as the Met Gala afterparty. We are excited to welcome Standard International's properties and team into the Hyatt family with the newly formed lifestyle group, leveraging their brilliance, creativity, culture, and innovation."

Rumors about the possible acquisition surfaced late last month. Some of Standard's most iconic properties include The Standard, High Line in New York City and The Standard, Bangkok Mahanakhon. Acquiring Standard significantly boosts Hyatt's lifestyle hotel strategy, enhancing its existing portfolio that includes Dream Hotels, Thompson Hotels, Andaz, and Alila. Hyatt's lifestyle hotel room count has already increased fivefold from 2017 to 2023, and last year, the company acquired the Mr & Mrs Smith luxury and lifestyle hotel booking platform.

The acquisition of Standard is anticipated to finalize later this year, with plans to establish a dedicated lifestyle group based in New York City. Amar Lalvani, executive chairman of Standard International, will take the lead in Hyatt's lifestyle division — mirroring how Hilton appointed Kevin Osterhaus, president of Graduate Hotels, as its president of global lifestyle brands after the Graduate acquisition following the Graduate acquisition.

"We took our time to find the perfect partner with whom to collaborate," Lalvani said in the statement. "By selecting Hyatt, we leverage a robust global infrastructure and a loyal guest community. I am incredibly proud of our team's achievements with The Standard and Bunkhouse Hotels and am honored that Hyatt recognizes the uniqueness of our brands, properties, and — most importantly — our people. We share a vision for the immense potential that still lies ahead."

This development suggests that major hotel groups like Hyatt are starting to understand that the most effective way to navigate the lifestyle hotel market is to keep the creative teams largely in place. Brands such as Marriott's W seemed to falter when they deviated too much from their original design and creative teams, and recent acquisitions in the industry reflect a trend to steer clear of similar errors.

For instance, Accor's Ennismore acquisition largely maintains brand leaders at the helm of their respective operations, including Gleneagles, Delano, and SLS. Hyatt's announcement on Tuesday afternoon reveals that the new lifestyle group will consist of "the talented Standard International team alongside Hyatt colleagues."

Nevertheless, the announcement did not address the status of Amber Asher, the current CEO of Standard International, which has raised concerns about her potential exit from the company. Asher and Standard are notable exceptions in the hotel sector, with a woman holding a top executive position at a hotel brand.

"After 13 years with the company, including the last three years as CEO overseeing its growth, Amber Asher has chosen to explore new opportunities after remaining for a transitional period to support the team and ensure a seamless handover," a spokesperson for Standard International informed TPG after the initial publication of this story.