HOUSTON – (Realty News Report) – Hyatt Hotels Corporation, one of the world’s largest hospitality companies, has announced plans to acquire the boutique Bunkhouse hotel brand, which is currently developing high-design properties in Houston’s Montrose and The Heights neighborhoods.
Headquartered in Chicago, Hyatt operates roughly 1,350 hotels across 78 countries and is positioning this acquisition to expand its portfolio of lifestyle and experience-driven brands.
Bunkhouse is building the 71-room Hotel St. Augustine, a $57 million project near the Menil Collection just west of Montrose Boulevard. Designed by Lake|Flato Architects of San Antonio, the St. Augustine will feature a chef-driven restaurant called Bistro Perseid.
In The Heights, Bunkhouse is developing the 47-room Hotel Daphne at 347 W. 20th Street, with an opening currently planned for 2025.
According to Hyatt, the planned acquisition of Bunkhouse and The Standard will advance Hyatt’s evolution into a brand- and experience-focused company. The transaction is structured as an asset-light deal, encompassing management, franchise and license agreements across a portfolio of properties.
The acquired portfolio includes management or branding agreements for 21 operating hotels with approximately 2,000 rooms. Notable properties are The Standard, London; The Standard, High Line in New York City; The Standard, Bangkok Mahanakhon; Hotel Saint Cecilia in Austin, Texas; and Hotel San Cristóbal in Baja California, Mexico. Hyatt intends to integrate these hotels into its World of Hyatt loyalty program, granting access to the program’s roughly 48 million members once the deal closes.
The acquisition also covers more than 30 projects that already have a signed agreement or letter of intent, including several properties expected to open within the next 12 months: The Standard, Pattaya Na Jomtien; The StandardX, Bangkok Phra Arthit; and Bunkhouse Hotels’ Hotel St. Augustine and Hotel Daphne. In addition to hotels, Standard International has built a residential business, with Standard Residences under development in Miami, Lisbon, Phuket, Hua Hin and Mexico City, and completed Bunkhouse Residences at Hotel Saint Cecilia in Austin.
Hyatt has agreed to a base purchase price of $150 million, with the potential for up to an additional $185 million to be paid over time as more properties are added to the portfolio.
The deal covers the brands and most affiliates of Standard International, the parent company of The Standard and Bunkhouse Hotel brands.
Amar Lalvani will join Hyatt as President & Creative Director of the Hyatt lifestyle group. In that role he will oversee integration of the acquired brands within the group while maintaining and enhancing each brand’s creative identity, innovation and growth.
Lalvani has a lengthy background in lifestyle hotel development. He led global development for W Hotels, then partnered with André Balazs on The Standard in 2010. In 2013 Lalvani formed Standard International, acquiring The Standard brand from Balazs and later purchasing a majority stake in The Bunkhouse Group from founder Liz Lambert and her partners. Lambert is recognized for pioneering distinctive hotels along Austin’s South Congress Avenue.
Aug. 21, 2024 Realty News Report Copyright 2024
Image: Lake Flato Courtesy Bunkhouse
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File: Hyatt Buying Bunkhouse Boutique Hotel Brand