John Pritzker has agreed to sell the boutique hotel company
he created, Two Roads Hospitality, to Hyatt Hotels, the company his father
Hyatt will acquire Two Roads Hospitality for a base sum of
$480 million, plus up to $120 million in additional potential payouts. The deal
is expected to close by the end of the year.
Two Roads' lifestyle-driven portfolio, which includes the
Alila, Destination Hotels, Joie de Vivre, Thompson and Tommie brands, spans a
total of 85 properties. The move extends Hyatt's reach into 23 new markets
while "enhancing its offerings in lifestyle hotel experiences and
wellbeing," according to a company statement.
Upon completion of the deal, Hyatt will consolidate its
lifestyle brands and the Two Roads stable into a new lifestyle division.
Two Roads' strong foothold in Asia will help "accelerate
expansion in this critically important and fast-growing part of the world,"
said Hyatt CEO Mark Hoplamazian. Headquartered in Singapore, Two Roads' Alila
brand operates hotels throughout Indonesia, India, Malaysia, China, Cambodia
Hyatt plans to integrate the Two Roads brands into its World
of Hyatt loyalty program next year.
In other company news, Hyatt CFO Patrick Grismer will
resign, following his recent appointment to the role of CFO at Starbucks Corp.
His departure is effective Nov. 2. He will be succeeded by Joan Bottarini,
currently Hyatt's senior vice president of finance for the Americas.