Following weeks of speculation, Hyatt on Tuesday said it would acquire Standard International, parent company of The Standard and Bunkhouse Hotels brands.
The deal is expected to close later this year. Hyatt has agreed to pay a base purchase price of $150 million, plus $185 million over time as more hotels enter the portfolio.
The transaction will initially encompass the management, franchise and licensing contracts for 21 hotels, including The Standard London and The Standard High Line in New York.
As part of the acquisition, Hyatt will establish a lifestyle group that will be headquartered in New York. Amar Lalvani, who is currently Standard International's executive chairman, will helm the group as its president and creative director.
Standard International's flagship lifestyle brand, The Standard, was launched by hotelier Andre Balazs in 1999. In 2013, Lalvani formed Standard International following a takeover of The Standard brand from Balazs, as well as the subsequent acquisition of a majority stake in boutique hotel company Bunkhouse Group.
The Standard currently has eight hotels in New York, Bangkok, London, Miami Beach, Ibiza, the Maldives and Hua Hin, Thailand. Bunkhouse has nearly a dozen properties spread across Texas, California, Kentucky and Mexico.
In addition to The Standard and Bunkhouse, Standard International's brand stable includes Peri Hotels and The StandardX, which debuted last November as The Standard's "rebellious younger sibling."
The company also recently unveiled plans for The Manner, a new luxury concept that's slated to make its debut in New York's SoHo neighborhood next month.
The acquisition comes as Standard International plots further expansion, with the group's pipeline featuring more than 30 projects, several of which are expected to open within the next year. These include The Standard Pattaya Na Jomtien and The StandardX Bangkok Phra Arthit in Thailand, as well as two Bunkhouse hotels in Houston -- the Hotel Saint Augustine and Hotel Daphne.