Hyatt Hotel Corporation and Dream Hotel Group on Tuesday, November 29, announced an agreement for a Hyatt affiliate to acquire Dream Hotel Group’s lifestyle hotel brand and management platform, including the Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands, which have properties in the Americas, Europe and Asia.
This acquisition will include a portfolio of 12 managed or franchised lifestyle hotels, with another 24 signed long-term management agreements for hotels expected to open in the future. The acquisition will extend Hyatt’s brand footprint in key markets, including Nashville, Hollywood, South Beach, Durham, New York City and the Catskills in New York. Signed contracts represent additional strategic destinations including Las Vegas, Saint Lucia and Doha.
This acquisition continues Hyatt’s asset-light growth strategy following its transactions to acquire Two Roads Hospitality in 2018 and Apple Leisure Group in 2021, and, most recently, its collaboration agreement with German Lindner Hotels AG, to further grow Hyatt’s brand footprint in Europe.
Upon closing, Hyatt will pay a base purchase price of $125 million, with up to an additional $175 million over the next six years as properties come into the pipeline and open. Stabilized management fees associated with the base purchase price of $125 million are anticipated to be approximately $12 million and, to the extent the contingent purchase price of $175 million is paid, additional stabilized management fees are anticipated to be up to approximately $27 million.
The transaction is anticipated to close in the coming months, subject to customary closing conditions. Following completion of the transaction, Hyatt will add the new properties into its World of Hyatt loyalty program.
Dream Hotel Group founder Sant Singh Chatwal will continue his commitment 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. Additionally, Dream Hotel Group’s Chief Development Officer David Kuperberg will join Hyatt as head of development – Dream Hotels; Chief Operating Officer Michael Lindenbaum will join Hyatt as global head of operations – Dream Hotels.
This article originally appeared on www.travelagentcentral.com.