Hyatt Hotels Corporation has revealed that it has signed an agreement to acquire Two Roads Hospitality. With this acquisition Hyatt will see the addition of Alila, Destination, Joie de Vivre, Thompson and tommie brands to its portfolio for $480 million.
Through the addition of Two Roads, the Hyatt portfolio will add 85 properties to the existing portfolio of 750 hotels, and expand Hyatt’s footprint in 23 new markets, especially within Asia.
The acquisition consists of a base purchase price of $480 million, with the potential for Hyatt to invest up to an additional $120 million more, contingent on the outcome of certain terms to be individually defined after closing.
The transaction is expected to close later this year, and Hyatt will create a dedicated lifestyle division to bring together the operations of Two Roads and Hyatt's lifestyle brands.
"Hyatt is an ideal home for us as we share many values and a deep commitment to thoughtful growth and creating compelling experiences for our guests," said Jamie Sabatier, chief executive officer, Two Roads Hospitality.
Hyatt also plans to integrate Two Roads brands into the World of Hyatt loyalty programme in 2019.
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Two Roads, formed through the 2016 merger of Lowe Enterprises’ Destination Hotels and Geolo Capital’s Commune Hotels & Resorts, manages more than 85 properties and has another 35 hotels in its development pipeline, according to Bloomberg.
In August, Hyatt and Small Luxury Hotels tied up to offer World of Hyatt members more perks. The new alliance will allow Hyatt members the opportunity to earn and redeem points during stays at participating SLH hotels when they book through Hyatt channels.