The recent acquisition of Standard International by Hyatt is just one of many examples of major players in the hotel industry seeking to expand their portfolio by adding boutique brands. This move by Hyatt reflects a larger trend in the sector where big companies are increasingly looking to increase their global brand footprint by acquiring smaller, independent players. According to Patrick Scholes, a managing director for lodging and leisure equity research at Truist Securities, this “brand grab” trend is sweeping the higher-end hotel sector, with companies seeking to grow their net room counts through acquisitions rather than developing new brands from scratch.
Robert Cole, a senior research analyst for lodging and leisure travel at Phocuswright, emphasizes the importance of big players in the industry for boutique brands to scale effectively. He mentions that boutique brands need the support of larger companies with reward programs, centralized purchasing, and management efficiencies to achieve growth. The acquisition of boutique brands not only provides them with access to global marketing and reservation networks but also improves their lending availability through established brand partnerships.
Apart from the Hyatt and Standard International deal, other major players have also engaged in high-profile lifestyle and boutique hotel acquisitions in recent years. Accor completed a joint venture with Ennismore in 2021, while Hilton acquired Graduate Hotels and the Sydell Group. The hotel industry has seen an increase in acquisitions and joint ventures aimed at consolidating lifestyle brands under a single umbrella to enhance their market presence and appeal to a broader audience.
Standard International currently operates several lifestyle brands, including The Standard, Bunkhouse Hotels, Peri Hotels, and The StandardX. The company’s upcoming luxury concept, The Manner, set to debut in New York, showcases its commitment to innovation and growth in the hospitality sector. Following the acquisition by Hyatt, Standard International aims to establish a lifestyle group based in New York, with Amar Lalvani as president and creative director, indicating a relatively hands-off approach to integration by the acquiring company.
The shift towards preserving a brand’s unique appeal post-acquisition is evident in the strategies adopted by major hotel giants in the industry. Companies like Hyatt are realizing the importance of maintaining a brand’s independence and authenticity to retain its popularity among customers. This willingness to embrace brands with edgier or more unconventional approaches to hospitality highlights a shift in the industry towards valuing uniqueness and innovation in brand partnerships.
The acquisition of Standard International by Hyatt is part of a broader trend in the hotel industry towards embracing boutique brands to expand market presence and appeal to diverse consumer preferences. The increased focus on preserving brand uniqueness and independence post-acquisition reflects the evolving dynamics of the hospitality sector. As major players continue to seek opportunities for growth and expansion, partnerships and acquisitions with boutique brands will play a crucial role in shaping the future of the industry.
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