Hyatt has announced the acquisition of international hotel management company Two Roads Hospitality. The takeover adds 85 new properties to the Hyatt portfolio, which are located in 8 countries. Hyatt Hotels Corporation’s Mark Hoplamazian told Businesswire:
“Hyatt and Two Roads share a commitment to genuine care and delivering distinctive experiences to discerning travelers. We are pleased to be coming together and are dedicated to learning from each other and taking the best of both organizations forward.”
The move cost Hyatt $480 million, although the company has the option to invest a further $120 million depending on terms yet to be finalized. As part of the announcement, Hyatt indicated that it would expand its brand presence to 23 new markets and focus on its lifestyle hotel experiences and wellbeing.
The deal is expected to close later in the year, and Hyatt plans to launch a dedicated lifestyle division to merge the operations of Hyatt’s lifestyle division and the Two Roads brand. According to the CEO of Two Roads Jamie Sabatier:
“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,… Hyatt’s unique position in the marketplace brings with it the powerful benefit of global scale while maintaining meaningful personal relationships with team members, guests and owners.”
Hyatt will provide further information about the deal and the estimated timeline of the integration, although the company expects Two Roads properties to be integrated into the World of Hyatt program by 2019.
This move is great news for World of Hyatt members and marks another step in a couple of years that have seen mainly positive changes. After overhauling its loyalty program in 2017 and issuing a new co-branded credit card in 2018, the company seems to be going from strength to strength. Only this week Hyatt fully integrated Exhale Spa’s into its World of Hyatt loyalty program.
Although World of Hyatt is a great loyalty program, one of its main drawbacks compared to other hotel chains is that it does not have a large footprint of properties around the world. In 2014 the company only had 587 properties worldwide, which is small compared to IHG’s 4,500 properties. The addition of 85 properties is a significant percentage increase in the global number of Hyatt hotels. Today is a good day for World of Hyatt members who should be looking forward to a more rewarding 2019.