Hyatt continues to shop for new brands.
The Chicago-based hotel giant plans to buy the Dream Hotel Group's lifestyle hotel brand and management platform in a deal that could go for as much as $300 million. The lifestyle segment of Dream Hotel Group's hotels focuses on heightened food and beverage offerings. Locals fill up restaurants and bars more than out-of-towners do in these hotels.
The Dream Hotel Group has hotels in the Americas, Europe and Asia. Adding hotels like The Time New York and Dream Midtown would increase the company's presence in New York by more than 30%.
Hyatt recently signed an agreement with Germany's Lindner Hotels AG to expand its European footprint. The deal came on the heels of Hyatt's acquisition of Apple Leisure Group.
Hyatt CEO Mark Hoplamazian said in a statement that they are excited to offer more inspiring experiences and celebratory programming to their guests and loyalty members.
The deal includes a portfolio of 12 existing hotels and a number of hotels in various stages of development. Marriott has a luxury collection of hotels, but the timing of the brand integration is not clear. The acquisition is expected to be completed soon.
The specifics of the brand integration timeline were not elaborated upon.
Two hours away from New York City, is the buzziest hotel included in the deal. Sant Singh Chatwal is the founder of the Dream Hotel Group and the ultra-luxury resort is named after him.
Hyatt would get a boost in other markets because of the current lineup of Dream Hotels, such as Nashville, Los Angeles and Miami's South Beach neighborhood. Dream Hotels can be found in Thailand and Las Vegas, as well as in the works for other places.
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According to the Dream Hotel Group website, the company is trying to bring more than one resort to Mexico.
Hyatt's plan to acquire Dream Hotel Group's lifestyle hotel division isn't more about filling in gaps than it is about beefing up its presence in sectors the hotel company sees as its strength
Hyatt was often cited as a smart investment play by analyst. The brand's emphasis on keeping brands that appeal to group meetings, events and business travel is one of the reasons for this.
Hyatt leaned into leisure in recent years.
JdV by Hyatt operates brands like Thompson Hotels and Alila, which were brought in through the company's Two Roads acquisition. The Hyatt resort portfolio was doubled overnight by the AppleLeisure Group deal. The Lindner partnership in Germany will add to the European expansion.
Hyatt and Japan's Kiraku launched a collection of hot spring ryokans that will embrace regional architecture, cuisine and activities. Hyatt is expanding its U.S. based Miraval brand.
"We have successfully integrated incredible lifestyle brands such as Thompson Hotels, and Dream Hotel Group joining Hyatt is a perfect fit," Hoplamazian said. It has been wonderful getting to know the Dream Hotel Group team and working towards the best way to bring their lifestyle brands into the Hyatt portfolio. We need to preserve what is unique about these brands, including their focus on nightlife and celebratory dining venues.
The properties of the Dream Hotel Group will become part of the World of Hyatt network. The base price of the deal is $125 million and an additional $175 million is dependent on the other hotels opening.
Dream Hotel Group's founder will remain connected to the company as an owner of four existing hotels and two currently in the works. The head of Dream Hotels will become the head of the Hyatt portfolio.
The ideal new home for the Dream Hotel Group brands is Hyatt because of its track record of preserving what makes lifestyle hotels special. There is a bright future ahead for our hotels, owners, guests and team members as part of the Hyatt family and I look forward to the next part of our journey.
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