Hyatt Hotels Corporation has inked a deal to buy lifestyle brand Dream Hotel Group for a base purchase price of $125 million (USD), it was announced Tuesday (Nov. 29).
As part of the agreement, Hyatt said it would pay an additional $175 million over the next six years as new properties open.
The Dream Hotel Group is comprised of managed and franchised lifestyle hotels across the Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands, with properties in the Americas, Europe and Asia.
The group has 24 new hotels in the works, including projects set to debut in Las Vegas, St. Lucia and Doha, Qatar.
Upon the deal's closing, the expansion will add more than 1,700 rooms to Hyatt’s lifestyle portfolio and increase Hyatt’s room count in New York City by more than 30 per cent, according to a press release.
“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,” stated Mark Hoplamazian, president and CEO at 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.”
Sant Singh Chatwal, chairman and founder of Dream Hotel Group, noted that Hyatt has a “proven track record of preserving what makes lifestyle hotels special.”
The transaction is expected to close in the coming months, subject to closing conditions. Once completed, Hyatt will work to welcome the new properties into the World of Hyatt loyalty program.
Dream Hotel Group founder Sant Singh Chatwal will continue as an owner of four open and two future hotels that are expected to join the Hyatt portfolio.
Dream Hotel Group CEO Jay Stein will join Hyatt as Head of Dream Hotels to guide the integration of the Dream Hotel Group brands into the Hyatt portfolio.
Additionally, Dream Hotel Group’s Chief Development Officer David Kuperberg will join Hyatt as Head of Development – Dream Hotels and Chief Operating Officer Michael Lindenbaum will join Hyatt as Global Head of Operations – Dream Hotels.
The deal continues Hyatt’s growth spurt following its acquisition of Two Roads Hospitality in 2018 and Apple Leisure Group in 2021 – and, most recently, a collaboration agreement with German Lindner Hotels AG, to expand in Europe.