Hyatt to Acquire Two Roads Hospitality; To Surge Existing Global Portfolio of 750 hotels by 85 Properties
The acquisition consists of a base purchase price of USD 480 mn, while Hyatt can further consider to invest up to an additional USD 120 mn in the aggregate, contingent on the outcome of certain terms to be individually defined after closing, a release issue here read.
HYATT HOTELS Corporation, a globally leading hotel management company headquartered in Chicago, yesterday announced an agreement to acquire Two Roads Hospitality, an international lifestyle boutique hotel management company, following which the former will add 85 more properties to its existing portfolio of 750 hotels globally. The brands under Two Roads Hospitality are Alila, Joie de Vivre, Thompson and tommie.
The acquisition consists of a base purchase price of USD 480 mn, while Hyatt can further consider to invest up to an additional USD 120 mn in the aggregate, contingent on the outcome of certain terms to be individually defined after closing, a release issue here read. The base plus contingent total purchase price is expected to reflect an EBITDA multiple of approximately 12-13x stabilised 2021 earnings, which Hyatt considers the best indicator of valuation based on anticipated synergies and growth, added the company in the release.
Positive about the acquisition, Mark Hoplamazian, President and Chief Executive, Hyatt Hotels Corporation, said, “Hyatt and Two Roads… are pleased to be coming together, and are dedicated to learning from each other and taking the best of both organisations forward.” Further appreciating Two Roads Hospitality, Hoplamazian said that their passionate team members, strong brands, global footprint and robust development pipeline will expand Hyatt’s lifestyle offerings and grow their brand presence in more places where their guests and World of Hyatt members want to travel.
In the Indian market, Two Road’s Hospitality operates two properties under the Alila brands – Alila Fort Bishangarh and Alila Diwa Goa. Hyatt currently operates a total of 29 hotels under seven distinct brands in India, of which Hyatt Centric recently paved its way into the Indian shores. The hotel company boasts of over 7,000 rooms pan India in 18 destinations comprising both metros and the Tier-II, III cities.
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