Hyatt has announced plans to acquire Dream Hotel Group in a move to expand its lifestyle hotel offerings.
The agreement will see Hyatt acquire the group’s brands Dream Hotels, The Chatwal Hotels and Unscripted Hotels, whose properties across Europe, the Americas and Asia have a focus on dining and nightlife experiences.
The acquisition will include a portfolio of 12 managed or franchised lifestyle hotels, with another 24 signed long-term management agreements for hotels in the pipeline.
Hyatt said that the expansion would add over 1,700 rooms to its lifestyle portfolio in locations such as Nashville, Hollywood, South Beach, Durham and Catskills while also boosting its room count in New York City by more than 30 per cent.
Hyatt will pay a base purchase price of $125 million and said it would also pay up to an additional $175 million over the next six years as properties come into the pipeline and open. The transaction is anticipated to close in the coming months “subject to customary closing conditions”.
Mark Hoplamazian, president and chief executive officer, Hyatt, commented:
“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.”