Hyatt Hotel Corporation and Dream Hotel Group have 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, with properties in hotel markets across the Americas, Europe and Asia.
This asset-light 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. Upon closing, this expansion will add over 1,700 rooms to Hyatt’s lifestyle portfolio and increase Hyatt’s room count in New York City by more than 30 per cent.
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, Hyatt’s 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 USD$125 million, with up to an additional USD$175 million over the next six years as properties come into the pipeline and open.
The acquisition will extend Hyatt’s brand footprint in key markets, including Nashville, Hollywood, South Beach, Durham, several locations in New York City and one in the Catskills.
Signed contracts represent additional strategic destinations including Las Vegas, Saint Lucia and Doha.
The transaction is anticipated to close in the coming months, subject to customary closing conditions.
Following completion of the transaction, Hyatt will work to welcome the new properties into the World of Hyatt loyalty program. World of Hyatt members are some of the most valuable travellers in the industry who spend more and stay more, generating high-quality revenue for the owners of Dream Hotel Group properties.
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, ensuring each brand is preserved while leveraging Hyatt’s capabilities to optimize property performance.
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.
For more information, please visit Hyatt