On Friday I wrote that Hyatt would be acquiring Two Roads Hospitality. That’s the hotel management company which manages and operates Alila Hotels & Resorts, Destination Hotels, Joie de Vivre Hotels, Thompson Hotels, and tommie Hotels.
- Destination Hotels is 47 properties
- Joie de Vivre is 19 properties, with their largest presence in California
- Alila is 17 plus 3 in pipeline, with a concentration in Indonesia and India
- Thompson Hotels has 10 locations
- And tommie has 1 coming
The deal has now been publicly confirmed at a price of $480 million “with the potential for Hyatt to invest up to an additional $120 million in the aggregate, contingent on the outcome of certain terms to be individually defined after closing.”
Through the addition of Two Roads, its established lifestyle brands and the management agreements for the majority of its 85 properties in eight countries, Hyatt will expand its brand presence into 23 new markets while enhancing its offerings in lifestyle hotel experiences and wellbeing. With Two Roads and its distinctive collection of lifestyle hotels, resorts and vacation residences, Hyatt will offer an expanded and more powerful portfolio of brands with best-in-class offerings to deliver compelling experiences and benefits for guests and World of Hyatt members, expand its relationship with valued hotel owners, and drive growth for shareholders.
Alila Uluwutu, Bali
The deal announcement cites 85 properties, 10% fewer than are listed on the Two Roads website. Acquiring the group will grow Hyatt’s footprint by about 13%.
In my view this represents a very good fit with Hyatt’s upscale brand and gives them a number of luxury properties in the U.S. and Asia especially. However it still leaves them light at the lower end of the spectrum even though their fastest growth over the last several years has been in the (relatively upscale) select service sector.
The largest shareholder of Two Roads is John Pritzker of the Hyatt Pritzkers so it’s a bit of an inside deal, though the company has been aggressively shopped and many chains looked at the deal.
Alila Seminyak, Bali
Hyatt plans to “create a dedicated lifestyle division…to bring together the operations of Two Roads’ and Hyatt’s lifestyle brands.”