Hyatt Hotels Corp. has struck a deal to acquire lifestyle hospitality company Dream Hotel Group for a base price of $125 million.
As part of the deal, Hyatt said it would also pay up to an additional $175 million over a six-year period, as new Dream Hotel Group properties come into the pipeline and open.
Dream Hotel Group has roughly a dozen managed or franchised lifestyle hotels across its Dream Hotels, Chatwal Hotels and Unscripted Hotels flags, as well as its By Dream Hotel Group soft brand. The group has 24 hotels currently in the pipeline, including projects slated to debut in Las Vegas, St. Lucia and Doha, Qatar.
According to Hyatt, the transaction, which is on track to close in the coming months, will add more than 1,700 rooms to its lifestyle portfolio. Notably, the acquisition will also grow Hyatt's New York City room count by 30%, thanks to the addition of Dream Hotel Group's Chatwal New York, Dream Downtown and Dream Midtown properties in Manhattan.
The deal also includes hotels in destinations like Nashville; Hollywood, Calif.; South Beach; Durham, N.C.; and the Catskills.
Dream Hotel Group CEO Jay Stein is set to join the Hyatt team as head of Dream Hotels and will be charged with guiding Dream's integration into the Hyatt fold. Additionally, Dream Hotel Group's chief development officer, David Kuperberg, will be named Hyatt's head of development for Dream Hotels, while the company's COO, Michael Lindenbaum, will be named Hyatt's global head of operations for Dream Hotels.
The Dream Hotel Group takeover marks a continuation of Hyatt's ongoing M&A spree, following the hospitality giant's acquisition of Two Roads Hospitality in 2018 and Apple Leisure Group in 2021 and, most recently, the forging of a collaboration agreement with Germany's Lindner Hotels AG in Europe.