This asset-light acquisition 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 Hyatt’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 its brand footprint in Europe.
US market extension
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.
Dream Hotel Group properties are known for their vibrant dining and nightlife experiences including hotspot restaurants, entertainment venues and nightclubs. The acquisition is intended to extend Hyatt’s brand footprint in key US markets, including Nashville, Hollywood, South Beach, Durham, several locations in New York City and one in the Catskills. Signed contracts represent additional strategic destinations including Las Vegas, Delhi and Doha.
Dream Hotel Group founder Sant Singh Chatwal will continue his commitment 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, aiming to ensure the DNA of each brand is preserved while leveraging Hyatt’s capabilities to optimise property performance. Additionally, Dream Hotel Group’s chief development officer David Kuperberg will join Hyatt as head of development – Dream Hotels; chief operating officer Michael Lindenbaum will join Hyatt as global head of operations – Dream Hotels.
The transaction is anticipated to close in the coming months, subject to customary closing conditions. In connection with the transaction, Moelis & Company LLC served as financial advisor to Hyatt and Latham & Watkins LLP acted as its legal advisor.
Mark Hoplamazian, president and CEO, Hyatt, said: “We have 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.”
Dream’s Chatwal added: “Hyatt has a proven track record of preserving what makes lifestyle hotels special and is the ideal new home for our growing Dream Hotel Group brand. As an owner of Dream Hotel Group properties, I look forward to the next part of our journey and am confident there is a bright future ahead for our hotels, owners, guests and team members as part of the Hyatt family.”