Hyatt Buys Dream Hotel Group for $125 Million, Plus Up to $175 Million More in Future
Deal extends brand in key markets >>
by: Harvey Chipkin
Hyatt Hotel Corporation announced an agreement 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 prominent hotel markets across the Americas, Europe and Asia. 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.
The acquisition will extend Hyatt’s brand footprint in key markets, including Nashville; South Beach, Miami; Durham, N.C.; several locations in New York City; and one in the Catskills in New York State. Signed contracts for future hotels represent additional strategic destinations including Las Vegas and Doha, Qatar.
Mark Hoplamazian, CEO of Hyatt, said the company has tremendous respect for what Dream Hotel Group founder Sant Singh Chatwal and CEO 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.”
Chatwal will continue his involvement as an owner of four open and two future hotels expected to join the Hyatt portfolio. Stein will join Hyatt as head of Dream Hotels. Additionally, Dream Hotel Group’s chief development officer David Kuperberg will join Hyatt as head of development - Dream Hotels; and COO Michael Lindenbaum will join Hyatt as global head of operations - Dream Hotels.
This “asset-light acquisition,” according to the announcement, 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 the brand’s room count in New York City by more than 30%.
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.