Hyatt Hotels Corporation (NYSE: H) affiliate agreed to acquire Dream Hotel Group's lifestyle hotel brand and management platform. Hyatt will pay a base purchase price of $125 million, with up to an additional $175 million over the next six years.
The acquisition includes Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands, with properties in prominent hotel markets across the Americas, Europe and Asia.
Dream Hotel Group properties are known for their vibrant dining and nightlife experiences, including hotspot restaurants, lavish entertainment venues, and exclusive night clubs.
The acquisition includes a portfolio of 12 managed or franchised lifestyle hotels, with another 24 signed long-term management agreements for hotels anticipated to open in the future.
The 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%.
The transaction is anticipated to close in the coming months.
Dream Hotel 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 CEO Jay Stein will join Hyatt as Head of Dream Hotels to guide the integration.
Hyatt held $1.4 billion in cash and equivalents as of September 30, 2022.
Price Action: H shares are trading higher by 2.53% at $96.71 on the last check Tuesday.
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