Hyatt Hotels Corp. has agreed to acquire Dream Hotel Group and its lifestyle hotel brands for upwards of $300 million, the companies announced Tuesday.
The companies expect the deal to close in “the coming months.” The acquisition will cost Hyatt $125 million at signing and up to an additional $175 million over six years as properties in the pipeline open, according to the companies, with acquisition fees expected to add $12 million to $27 million to the purchase price.
The deal adds 1,700 rooms in 12 franchised properties to Hyatt’s lifestyle portfolio to be managed by a company affiliate. They include The Chatwal Hotel, Dream Hotels and Unscripted Hotels with another 24 franchise property agreements to be signed in “the future,” according to Hyatt. The acquisition will extend Hyatt’s footprint in California, Tennessee, North Carolina and New York—increasing the company’s room count by 30 percent in New York City—and includes properties in other destinations, such as Las Vegas and Doha.
Dream Hotel Group founder Sant Singh Chatwal will remain an owner of four open and two planned properties. Dream Hotel executives joining Hyatt include CEO Jay Stein as head of Dream Hotels, David Kuperberg as Dream Hotels head of development and Michael Lindenbaum as Dream Hotels global head of operations.
The acquisition announcement follows Hyatt’s deal with German Lindner Hotels AG in October, expanding the Hyatt’s European presence.
[email protected] (Angelique Platas)
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