Hyatt Pursues Standard Hotels: What’s Behind the Luxury Lifestyle Play
Photo Credit: A bedroom suite at The Standard Hua Hin, a luxury hotel in Thailand. Standard International
Skift Take
Hyatt sees adding luxury lifestyle hotels like Standard Hotels as creating a virtuous cycle of growth in its loyalty program and pipeline.
Hyatt is reportedly near to closing a transaction with Standard International, owner of the luxury lifestyle brand The Standard and other brands.
What's behind the potential deal? The Standard is part of a category of hotels that Hyatt and all major hotel groups increasingly covet. While a typical hotel is just a place to sleep, "luxury lifestyle" hotels are boutique-like places where the lobby looks like a modern art gallery and the rooftop bar serves drinks with names you can't pronounce.
Hyatt CEO Mark Hoplamazian has previously told investors that adding luxury and lifestyle brands can create a "network effect," driving loyalty program growth and engagement.
This network effect works out roughly this way: The more fancy hotels an operator has, the more well-to-do people want to stay there and book directly.
Hyatt's Gains in Luxury and LifestyleOver the past six years, Hyatt has doubled the company's number of luxury hotels and quintu
