Hyatt’s shopping spree for new brands isn’t over.
The Chicago-based hotel giant plans to buy the lifestyle hotel brand and management platform of the smaller Dream Hotel Group in a deal that could cost up to $300 million, the companies announced on Tuesday. . Dream Hotel Group’s hotels largely operate in the lifestyle segment – hotels that focus on enhanced food and beverage offerings and design. These hotels rely on locals to fill their restaurants and bars almost as much as they rely on foreigners to fill their rooms.
Dream offer details
Dream Hotel Group operates hotels under the Dream Hotels, Chatwal Hotels and Unscripted Hotels brands across the Americas, Europe and Asia. The acquisition would be a huge boost for Hyatt (and World of Hyatt loyalists); it would expand the company’s presence in New York by more than 30% by adding hotels like The Chatwal New York, Dream Downtown, Dream Midtown and The Time New York.
The move comes after Hyatt recently reached an agreement with Germany’s Lindner Hotels AG to expand its European footprint. While the deal isn’t a takeover, it follows Hyatt’s $2.7 billion acquisition of Apple Leisure Group in the all-inclusive resort space.
“We are excited to offer even more inspiring experiences and celebratory programs to our loyal guests and members and to bring the value of the Hyatt network to a growing number of discerning hotel owners and developers around the world” , Hyatt CEO Mark Hoplamazian said in a statement. .
A portfolio of 12 existing hotels and a pipeline of 24 other hotels in various stages of development are included in the deal. The timeline for brand integration is unclear, as The Chatwal New York is part of the Luxury Collection of Marriott hotels. The acquisition should be finalized “in the coming months”.
A Hyatt spokesperson declined to elaborate on specifics of the brand’s integration timeline.
The liveliest hotel included in the deal is The Chatwal Lodge, an upstate New York resort two hours from New York City. Named after Dream Hotel Group founder Sant Singh Chatwal, the ultra-luxurious resort has just 11 rooms and suites, and it earns high marks for its service and dining offerings.
Dream Hotels’ current lineup means Hyatt would get a boost in other markets it already operates in, such as Nashville, Los Angeles and the South Beach area of Miami. There are also dream hotels in Bangkok and Phuket, Thailand, and more are in the works for places like Las Vegas and Doha, Qatar.
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The company is also working to bring several Chatwal resorts to Mexico, according to the Dream Hotel Group website.
Hyatt’s plan to acquire Dream Hotel Group’s lifestyle hotel division isn’t so much about filling gaps as it is about strengthening its presence in areas the hotel company sees as its strength.
Over the past few months, investor analysts have frequently cited Hyatt as a smart investment. This is due to the brand’s growing push into lifestyle and leisure hotels – which have performed best throughout the pandemic, even in the worst months – and its focus on maintaining brands that attract group meetings, events and business trips.
However, Hyatt’s penchant for leisure has grown in recent years.
The company’s acquisition of Two Roads Hospitality in 2018 brought in brands such as Thompson Hotels, Alila and Joie de Vivre (which now operates as JdV by Hyatt). The Apple Leisure Group deal doubled Hyatt’s resort portfolio overnight and expanded its European presence by 60%. The Lindner partnership in Germany – where most hotels are expected to convert to the JdV brand – will contribute to this European expansion.
The partnership with Germany is not the only one: Hyatt teamed up with Japanese Kiraku earlier this fall to launch a collection of hot spring ryokans (a type of Japanese inn) that will encompass architecture, cuisine and regional activities. The deal came as part of Hyatt’s expansion of its US-based wellness brand Miraval.
“We have successfully integrated incredible lifestyle brands such as Thompson Hotels, and Dream Hotel Group joining Hyatt is an ideal fit given that experience,” Hoplamazian told TPG by email. months and working on how best to integrate their lifestyle brands into the Hyatt portfolio, post-closing. It’s important that we preserve what is so unique and special about these brands, including their strong focus on nightlife and party dining venues and experiences.
Upon closing of the acquisition of Dream Hotel Group, Hyatt will integrate the properties into the World of Hyatt network. The base price of the deal is $125 million, while an additional $175 million depends on the actual opening of the other hotels under development.
Chatwal, the founder of Dream Hotel Group, will remain with the company as the owner of four existing hotels and two others currently under construction. Dream Hotel Group CEO Jay Stein will join Hyatt as the head of Dream Hotels to lead the integration into the Hyatt portfolio.
“Hyatt has a proven track record of preserving what makes lifestyle hotels special and is the perfect new home for our growing Dream Hotel Group brands,” Chatwal said in a statement. “As owner of Dream Hotel Group properties, I look forward to the next part of our journey and I am confident that our hotels, owners, guests and team members have a bright future ahead of them within the Hyatt family.”
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