Industry Update
Press Release30 November 2018

Hyatt Completes Acquisition of Two Roads Hospitality

Addition of Alila, Destination, Joie de Vivre, Thompson and tommie brands expands Hyatt’s lifestyle and wellbeing offerings for high-end travelers worldwide Acquisition price revised to $405 million from $480 million; additional potential consideration

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Global Hyatt Corporation
  • Addition of Alila, Destination, Joie de Vivre, Thompson and tommie brands expands Hyatts lifestyle and wellbeing offerings for high-end travelers worldwide Acquisition price revised to $405 million from $480 million
  • additional potential consideration revised to $96 million from $120 million
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Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt has completed the previously announced acquisition of Two Roads Hospitality, a lifestyle hotel management company with a unique collection of distinctive brands, outstanding properties and a significant global development pipeline.

With the addition of five established lifestyle brands Alila, Destination, Joie de Vivre, Thompson, and tommie Hyatt has expanded its brand presence into 23 new markets with management and license agreements for 74 open and operating hotels across North America and Asia, and a robust pipeline of signed management agreements. As part of the acquisition, Hyatt is establishing a new dedicated lifestyle division to combine the operations of Two Roads and Hyatts lifestyle brands.

We will leverage the shared expertise of Hyatt and Two Roads across our powerful combined portfolio of 19 brands to bring best-in-class offerings for guests around the globe, said Mark Hoplamazian, president and CEO, Hyatt Hotels Corporation. For hotel owners, our platform will deliver opportunities for enhanced operational excellence and financial performance. We are pleased to have completed this exciting transaction, and we welcome Two Roads associates to Hyatt.

Two Roads brands are expected to join the World of Hyatt loyalty program in the near future, expanding opportunities for World of Hyatt members to earn and redeem points across more leisure-focused stay options and also driving hotel occupancy from a loyal group of travelers who spend more, stay more and book directly.

Updated Outlook Information

Prior to closing the transaction, the base purchase price for the acquisition was revised to $405 million from $480 million, and the aggregate potential additional consideration from Hyatt was revised to $96 million from $120 million. The revised consideration reflects the exclusion of certain properties from the transaction, including properties not operated under the Two Roads brands and properties that will continue to be managed or licensed directly by an affiliate of sellers. The total purchase price reflects an EBITDA multiple of approximately 12x stabilized 2021 earnings, which Hyatt considers the best indicator of valuation based on anticipated synergies and growth.

As a result of the revised transaction terms, Hyatt expects the 2019 Adjusted EBITDA contribution prior to non-recurring integration-related costs to be approximately $20-25 million. This compares to a prior estimate of approximately $25 million to $30 million. After including integration costs, the net contribution to 2019 Adjusted EBITDA is expected to be flat to $5 million.

Goldman Sachs & Co. LLC served as exclusive financial advisor to Hyatt; Moelis & Company LLC served as exclusive financial advisor to Two Roads Hospitality; Latham & Watkins LLP served as legal counsel to Hyatt; Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Two Roads Hospitality.

The term Hyatt is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates. Hyatt plans to include Two Roads properties in its World of Hyatt loyalty program, but such properties are not currently participating.

Related Brands

Thompson

Founded in 2001, Thompson Hotels is an award-winning boutique lifestyle hospitality brand with a collection of stunning, dynamic properties. Each of Thompson Hotels’ urban and resort locations offers a carefully layered environment that molds into its surrounding community.
brand information

Alila

The hallmark of Alila is the combination of innovative design and luxury in unique locations, set apart by an unprecedented level of private space, crafted artisanship, personalised hospitality and bespoke learning journeys.
brand information

tommie

tommie is a new, micro lifestyle hotel brand developed by Commune Hotels & Resorts. Built for the youthful and open-minded traveler who seeks to make the most of every moment, tommie was created to be a living forum for the curious and creative where guests are encouraged to author their own stays through purposeful design, community programming and personalized amenities.
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Jaya Hotels & Residences

Two decades of successful collaborations with leading hospitality brands and celebrated design across the continents afforded Jaya the inspiration to establish an entirely new hospitality brand, manifesting their values and commitment to luxury, location and service.
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Other Brands by Hyatt
Alila
Andaz
Destination
Grand Hyatt
Hyatt
Hyatt Centric
HYATT house
Hyatt Place
Hyatt Regency
Jaya Hotels & Residences
Joie de Vivre
Miraval
Park Hyatt
The Unbound Collection by Hyatt
Thompson
tommie
Zilara (By Hyatt)
Ziva (By Hyatt)

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a portfolio of 20 premier brands. As of June 30, 2019, the Company's portfolio included more than 875 properties in over 60 countries across six continents. The Company's purpose to care for people so they can be their best informs its business decisions and growth strategy and is intended to attract and retain top colleagues, build relationships with guests and create value for shareholders. The Company's subsidiaries develop, own, operate, manage, franchise, license or provide services to hotels, resorts, branded residences, vacation ownership properties, and fitness and spa locations, including under the Park Hyatt®, Miraval®, Grand Hyatt®, Alila®, Andaz®, The Unbound Collection by Hyatt®, Destination®, Hyatt Regency®, Hyatt®, Hyatt Ziva, Hyatt Zilara, Thompson Hotels®, Hyatt Centric®, Caption by Hyatt, Joie de Vivre®, Hyatt House®, Hyatt Place®, tommie™, Hyatt Residence Club® and Exhale® brand names, and operates the World of Hyatt® loyalty program that provides distinct benefits and exclusive experiences to its valued members. For more information, please visit www.hyatt.com.

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