Hyatt Hotels Corporation has announced plans to acquire Standard International, the parent company of The Standard and Bunkhouse Hotels brands. The acquisition is valued at up to $335 million (£260 million) and is set to significantly bolster Hyatt's presence in the lifestyle hospitality sector.

Hyatt will pay an initial $150 million (£115 million) for the acquisition, with up to an additional $185 million (£142 million) to be paid as more properties join the portfolio. The deal includes 21 existing hotels, comprising approximately 2,000 rooms, with iconic locations such as The Standard, London, and The Standard, High Line in New York City. In addition, more than 30 new projects are in the pipeline, with several expected to open within the next year.

This acquisition marks a strategic move by Hyatt to create a new lifestyle group headquartered in New York City. This new group will be led by Amar Lalvani, the current Executive Chairman of Standard International, who will take on the role of President and Creative Director. Under Lalvani’s leadership, the group will integrate Hyatt’s operational strengths and loyalty program with Standard International’s creative and innovative approach to hospitality.

The Standard brand is known for its unique design and culturally vibrant properties, making it a strong addition to Hyatt’s portfolio. The acquisition will allow Hyatt to expand its lifestyle offerings while maintaining an asset-light model, focusing on management, franchise, and license contracts rather than owning physical properties.

Hyatt plans to integrate Standard International’s hotels into its World of Hyatt loyalty program, which currently boasts 48 million members. This move will offer existing Hyatt customers access to a wider range of lifestyle hotels, further enhancing the brand’s appeal.

Hyatt President and CEO, Mark Hoplamazian, expressed enthusiasm for the acquisition, stating, “The team behind Standard International has created a unique and award-winning portfolio of brands that challenge the status quo. We are thrilled to welcome these properties and their team to the Hyatt family, and we look forward to drawing on their creativity and innovation as we continue to grow our lifestyle portfolio.”

The transaction is expected to close later this year, pending customary closing conditions.