US: Hyatt is set to acquire Dream Hotel Group and its portfolio of 12 lifestyle hotels, with a further 24 signed in the future.
Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands will add over 1,700 rooms to Hyatt’s lifestyle portfolio and increase Hyatt’s room count in New York City by more than 30 per cent.
The acquisition will extend Hyatt’s footprint in other key markets such as Nashville, Hollywood, South Beach, Durham, and the Catskills.
Hyatt will pay a base purchase price of $125 million (approximately $12 million in stabilised management fees) with up to an additional $175 million over the next six years.
Mark Hoplamazian, president and CEO at Hyatt, said: “We have tremendous respect for what Dream Hotel Group founder Sant Singh Chatwal, chief executive officer Jay Stein, and their teams have created. We are grateful for the trust being placed in us by Dream Hotel Group to care for their brands and carry their success forward into the future.
“We look forward to continuing our growth journey with more than 600 new Hyatt family members who will further elevate our lifestyle expertise and expand the success of our dedicated lifestyle division,” Hoplamazian added. “We are excited to offer even more inspiring experiences and celebratory programming to our guests and loyalty members and bring the value of the Hyatt network to a growing number of discerning hotel owners and developers around the world.”
Sant Singh Chatwal, chairman and founder of Dream Hotel Group, said: “Hyatt has a proven track record of preserving what makes lifestyle hotels special and is the ideal new home for our growing Dream Hotel Group brands. As an owner of Dream Hotel Group properties, I look forward to the next part of our journey and am confident there is a bright future ahead for our hotels, owners, guests and team members as part of the Hyatt family.”
Chatwal will remain as an owner of four open and two future hotels that are expected to join the Hyatt portfolio. Stein will join Hyatt as head of Dream Hotels to integrate the group’s brands into Hyatt. Additionally, Dream Hotel Group’s chief development officer David Kuperberg will join Hyatt as head of development – Dream Hotels, and COO Michael Lindenbaum as global head of operations – Dream Hotels.
The transaction is anticipated to close in the coming months, subject to customary closing conditions. It will follow Hyatt’s recent collaboration agreement with Lindner Hotels which will bring more than 30 European properties into the Hyatt brand portfolio.