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In November 2022, Hyatt announced it would acquire Dream Hotel Group. This transaction was completed in February 2022, at which point Dream properties began to join World of Hyatt. There’s an exciting update now, as this integration has been completed, so all properties are now participating in World of Hyatt.
Dream Hotel Group joins Hyatt portfolio
Hyatt has acquired Dream Hotel Group’s lifestyle hotel brands and management platform, including Dream Hotels, Chatwal Hotels, and Unscripted Hotels, with properties in the Americas, Europe, and Asia.
This asset-light acquisition is initially increasing Hyatt’s portfolio by roughly a dozen properties, with another 24 properties expected to open in the future. This expansion is adding 1,700 rooms to Hyatt’s lifestyle portfolio, and increases Hyatt’s room count in New York City by more than 30%.
Hyatt has paid a base purchase price of $125 million, with up to an additional $175 million paid over the next six years, as properties come into the pipeline and open. Management fees associated with the base purchase price of $125 million are expected to be approximately $12 million per year, and the hope is that this grows to $27 million per year as more properties open.
As I’ll discuss in more detail below, Hyatt has added these properties to the World of Hyatt program, giving members the opportunity to earn and redeem points, and take advantage of elite perks.
Dream Downtown in New York
The basics of the Dream Hotels portfolio
For those not familiar with Dream Hotels, they’re basically known as party hotels with destination bars and nightclubs. As Hyatt describes it, these hotels are known for their “vibrant dining and nightlife experiences, including hotspot restaurants, lavish entertainment venues, and exclusive night clubs built on strategic collaborations with innovative and award-winning industry leaders.”
While these hotels no doubt have some personality, I would say that they’re more lifestyle properties than luxury properties. To compare them to other major hotel brands, they’re probably most similar to W Hotels or Thompson Hotels.
The Dream Hotels brand is expected to grow significantly, with future locations planned for Atlanta, Cleveland, Dallas, Las Vegas, Louisville, Memphis, Miami, Oklahoma City, Palm Springs, San Antonio, and Valle de Guadalupe.
Here’s how Hyatt CEO Mark Hoplamazian describes this acquisition:
“We have tremendous respect for what Dream Hotel Group founder Sant Singh Chatwal and Chief Executive Officer Jay Stein and their team have created and are grateful for the trust being placed in us by Dream Hotel Group to care for their brands and carry their success forward into the future. We look forward to continuing our growth journey with more than 600 new Hyatt family members who will further elevate our lifestyle expertise and expand the success of our dedicated lifestyle division. We are excited to offer even more inspiring experiences and celebratory programming to our guests and loyalty members and bring the value of the Hyatt network to a growing number of discerning hotel owners and developers around the world.”
Chatwal Lodge in The Catskills
Dream Hotels World of Hyatt integration complete
Dream Hotel Group properties have now been integrated into World of Hyatt, so here are the properties that are now fully participating in the program:
Dream Downtown, New YorkDream Hollywood, CaliforniaDream Midtown, New YorkDream Nashville, TennesseeDream South Beach, FloridaThe Chatwal, New YorkThe Chatwal Lodge, New YorkThe Time New York, New YorkUnscripted Durham, North CarolinaThese properties are fully integrated into World of Hyatt. This means that members can earn and redeem points, and take advantage of elite perks, like Globalist members receiving complimentary breakfast and being eligible for suite upgrades.
To celebrate these new additions, there’s a promotion offering 1,000 bonus points per night at Dream Hotels properties, up to 10,000 bonus points. You can find all the details here.
Dream Hollywood
Bottom line
Hyatt has completed its acquisition of Dream Hotel Group. This acquisition initially includes around a dozen properties, and we can expect that there are another two dozen properties in the pipeline. Dream Hotel Group is known for its lifestyle hotels, including Dream properties, as well as Chatwal properties.
Dream Hotel Group’s integration into World of Hyatt is now complete, meaning that members can earn and redeem points for stays at all eligible properties.
There are some useful additions to Hyatt’s portfolio, especially for those who like lifestyle properties. In particular, it’s impressive to see Hyatt’s continued growth in New York, as it’s amazing how that portfolio has grown over the past decade.
What do you make of Hyatt acquiring Dream Hotel Group?
Title: Hyatt Acquires Dream Hotel Group, World Of Hyatt Integration Complete
Sourced From: onemileatatime.com/news/hyatt-dream-hotels/
Published Date: Thu, 29 Jun 2023 13:17:30 +0000
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