In a move intended to bolster its investment in lifestyle hotels, Hyatt Hotels Corp. announced it will acquire Two Roads Hospitality for $480 million, adding 23 new markets to its portfolio. The independent lodging company is partly owned by the son of Hyatt’s late founder Jay Pritzker — and includes 85 properties in eight countries under brands such as Thompson Hotels, Joie de Vivre Hotels, Alila, Destination Hotels, and tommie.
Hyatt plans to create a dedicated lifestyle division, once the transaction is completed at the end of this year, bringing the Two Roads and Hyatt brands together. The hotel behemoth also expects to invest another $120 million in Two Roads, once the deal is closed.
“Two Roads’ passionate team members, strong brands, global footprint and robust development pipeline will expand our lifestyle offerings and grow Hyatt’s brand presence in more places where our guests and World of Hyatt members want to travel,” said Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation. “Importantly, combining Two Roads’ meaningful brand presence and development plans in Asia with Hyatt’s already strong position in this region will allow us to accelerate expansion in this critically important and fast-growing part of the world.”
Hyatt plans to integrate Two Roads brands into the World of Hyatt program in 2019, expanding opportunities for World of Hyatt members to earn and redeem points across more leisure-focused stay options.
According to an interview with Bloomberg, Hoplamazian said Two Roads’ brands “are positioned at the high end of their respective segments, same as Hyatt. They’re clearly attracting higher-end travelers, which is very consistent with our customer base.”
Two Roads was formed in 2016 through the merger of Lowe Enterprises’ Destination Hotels and Geolo Capital’s Commune Hotels & Resorts. Geolo’s co-founder is John Pritzker, son of Hyatt’s late founder Jay Pritzker.