HYATT HOTELS CORP. is set to launch a lifestyle group following the acquisition of Standard International, the parent company of The Standard and Bunkhouse Hotels. The new group would focus on developing future projects included in the acquisition.
Amar Lalvani, former executive chairman of Standard International, will serve as president and creative director of the new group. It will be headquartered in New York City, with additional offices in Austin and Bangkok, Hyatt said in a statement.
“The lifestyle segment isn’t for the faint of heart; it takes creativity and commitment,” said Lalvani. “But if you get it right, you reap the benefits of strong guest loyalty and developer returns. Hyatt respects the creativity needed to deliver our experiences, while we value Hyatt’s history, global infrastructure, and commercial services.”
Hyatt’s acquisition of Standard International includes more than 30 future projects with signed agreements or letters of intent, along with new projects initiated by the August announcement, the statement said. It also encompasses Standard Residences under development in Miami, Lisbon, Phuket, Hua Hin, Mexico City, and Tulum, as well as the completed Bunkhouse Residences at Hotel Saint Cecilia in Austin.
“The development community knows an industry game-changer when they see it, and the enthusiasm for combining the ethos of The Standard and Bunkhouse brands with Hyatt’s network is palpable,” said Mark Hoplamazian, president and CEO of Hyatt. “Developers appreciate this combination as much as we do.”
Asset-light strategy
The asset-light portfolio comprises management, franchise and license contracts for 22 open hotels with approximately 2,000 rooms, including The Standard, London; The Standard, High Line in New York City; The Standard, Bangkok Mahanakhon; and The Manner in SoHo, New York City, which debuted last month, the statement said. New properties set to open later this year include The Standard, Singapore; Bunkhouse’s Hotel Saint Augustine in Houston; and The StandardX, Bangkok Phra Arthit.
“Our transformation to an asset-light business model has been a success, and it’s time to evolve our organization to propel us into the future, benefiting our guests, members, customers, owners, and shareholders,” said Hoplamazian. “This is not about prioritizing one segment over another; it’s about aligning our resources and expertise to better serve our entire portfolio.”
Hyatt's portfolio continues to expand across all segments, the statement said. The company has a collection of all-inclusive resorts globally, while its select-service portfolio, representing 50 percent of the pipeline as of the second quarter of 2024, is a driver for introducing Hyatt-branded properties to new markets.
The company reported 85 percent growth in its global pipeline since 2017, reaching 129,000 rooms. During this time, the company doubled its luxury rooms, tripled its resort rooms, and quintupled its lifestyle rooms. The number of World of Hyatt members has tripled, and room night penetration for World of Hyatt members has increased by over 1,300 basis points.
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