The acquisitions continue for Hyatt.
On Tuesday, Hyatt Hotel Corporation announced it had reached an agreement to acquire Dream Hotel Group, the lifestyle hotel brand that includes Dream Hotels, The Chatwal Hotels, and Unscripted Hotels, for about $300 million. Dreams, which was founded by Indian-American businessman Sant Singh Chatwal in the 1970s, is known for hotels that include a focus on dining and nightlife experiences.
The deal, which is expected to close in the coming months, will add 12 managed or franchised lifestyle hotels, along with another 24 signed long-term management agreements for future hotels, to the Hyatt portfolio. That adds up to 1,700 rooms total and a 30% increase in room count in New York City alone. It also boosts Hyatt’s presence in Nashville, Los Angeles, Miami, and more.
Hyatt will pay an initial base purchase price of $125 million and then an additional $175 million over the next six years as those 24 new properties start to open. Those new properties are planned for destinations including Las Vegas, St. Lucia, and Doha,
“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 Mark Hoplamazian, president and CEO of Hyatt.
“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. We are excited to offer even more inspiring experiences and celebratory programming to our guests and loyalty members and bring the value of the Hyatt network to a growing number of discerning hotel owners and developers around the world.”
With the news, Hyatt continues its strategy of acquiring asset-light companies, a trend it kicked off in 2018 when it acquired Two Roads Hospitality for $480 million, adding 23 new markets to its portfolio, and continued when it acquired Apple Leisure Group last year. Most of Hyatt's most recent acquisitions have been in the leisure space, including a focus on all-inclusives with that Apple Leisure Group deal.