Hyatt Hotel Corp. is continuing its asset-light growth strategy with an announcement that it plans to acquire Dream Hotel Group of lifestyle hotels.
Hyatt Hotel Corp. is adding to its portfolio of unique lifestyle hotels with the recently announced plan to acquire Dream Hotel Group’s Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands, along with the company’s management platform. The asset-light acquisition includes 12 properties located in some of the world’s most prominent hotel markets across the Americas, Europe and Asia, as well as 24 more signed, long-term management agreements for future hotels. Once the deal closes in the coming months, Hyatt will be adding more than 1,700 rooms to its lifestyle portfolio — and upping its room count in New York City by more than 30%. The base purchase price on closing is $125 million, and could include another $175 million over the next six years as new properties open.
“We have tremendous respect for what Dream Hotel Group founder Sant Singh Chatwal and Chief Executive Officer Jay Stein and their team have created and 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,” said Hyatt President and CEO Mark Hoplamazian. “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.”
This latest deal continues the hotel company’s asset-light growth strategy that has already included snapping up Two Roads Hospitality in 2018, Apple Leisure Group in 2021, and Hyatt’s most recent collaborative agreement this fall with German Lindner Hotels AG, which will expand the company’s footprint in Europe.
In addition to several properties in New York City, Hyatt will be bringing properties into its World of Hyatt loyalty programs in several key markets, including Nashville; Los Angeles; Miami Beach, Fla.; Durham, N.C.; and the Catskills region of New York. Still to come are new properties in locations including Las Vegas, Saint Lucia and Qatar.
“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,” said Dream Hotel Group founder Sant Singh Chatwal. “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 stay on as an owner of four open and two future hotels that are expected to join the Hyatt portfolio. Dream Hotel Group CEO Jay Stein will join Hyatt as Head of Dream Hotels to guide the integration of the Dream Hotel Group brands into the Hyatt portfolio.
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