Skift Take
We all knew Hyatt was in the mood for a major acquisition. (NH Hotel Group or Starwood, anyone?) And now we have a much better idea of what its plans are for Two Roads, as well as other acquisitions down the line.
It’s a well-known fact that in today’s highly competitive and increasingly consolidated hospitality industry that relatively smaller public hotel companies like Hyatt are seeking ways to add more scale.
So with just 750 hotels in its global portfolio, Hyatt’s proposed purchase of Two Roads Hospitality on October 8 wasn’t really a surprise within the industry or that it wanted to add to its portfolio. By comparison, Marriott International has more than 6,700 hotels and Hilton has more than 5,500 hotels.
On a conference call to discuss third quarter earnings on Wednesday, Hyatt CEO Mark Hoplamazian and outgoing chief financial officer Patrick Grismer offered more details and insights into Hyatt’s reasoning for buying Two Roads, and what it intends to do with its brands.
More Details on the Two Roads Deal
Hyatt said it intends to formally close its acquisition of Two Roads for a base price of $480 million within the next two to three weeks, with the option of investing up to an additional $120 million related to hotel management contracts and conversions.
Hyatt is financing this acquisition
