The recent move by Hyatt to acquire Standard International is not an isolated incident in the hotel industry. It reflects a broader trend among major players in the hospitality sector to diversify and expand their portfolio by incorporating boutique brands. This strategy, commonly referred to as a „brand grab“ by industry experts, aims to increase the global brand footprint and room count of large hotel companies through strategic acquisitions.
According to Patrick Scholes, a managing director for lodging and leisure equity research at Truist Securities, acquiring smaller, innovative brands like Standard allows companies like Hyatt to enter new market segments without the high costs associated with developing a new brand from scratch. In addition, such deals provide acquired brands with access to a larger company’s global marketing, online reservation network, and guest reward system, facilitating growth and expansion opportunities.
Robert Cole, a senior research analyst for lodging and leisure travel at Phocuswright, emphasized the importance of scale for boutique brands, stating that they need the support of larger companies for efficient management practices and centralized operations. By partnering with established brands, boutique hotels can benefit from streamlined processes and resources that contribute to their success in a competitive market.
The acquisition of Standard International by Hyatt is part of a series of high-profile lifestyle and boutique hotel deals that have taken place in recent years. In 2021, Accor established a joint venture with lifestyle group Ennismore and launched a dedicated entity to consolidate their lifestyle brands. Hilton also made waves with the acquisitions of Graduate Hotels and the Sydell Group, known for its NoMad brand. Hyatt’s acquisition of Dream Hotel Group and Me and All Hotels further demonstrates its commitment to lifestyle offerings.
The Standard acquisition, expected to be finalized later this year, involves the management, franchise, and licensing contracts for 21 hotels, with a base purchase price of $150 million and additional payments over time as more properties join the portfolio. Standard International’s diverse portfolio includes The Standard lifestyle brand, Bunkhouse Hotels, Peri Hotels, and The StandardX, catering to various markets and demographics.
Following the acquisition, Hyatt plans to establish a lifestyle group based in New York, with Amar Lalvani serving as president and creative director. This approach indicates Hyatt’s intention to maintain the unique appeal and independence of the Standard brand, allowing it to operate autonomously while benefiting from the larger company’s resources and support. Industry experts emphasize the importance of preserving a brand’s identity and niche market in post-acquisition integration strategies.
The trend of major hotel companies acquiring edgier or unconventional brands reflects a shift towards embracing diversity and uniqueness in the hospitality sector. Brands like Standard, with their niche market and unconventional approach to hospitality, are seen as valuable assets by industry giants like Hyatt, Hilton, and Marriott. This willingness to preserve a brand’s identity and independence signifies a departure from traditional acquisition strategies and a recognition of the evolving consumer preferences in the market.
Napsat komentář