In November 2022, Hyatt announced it would acquire Dream Hotel Group. This transaction has now been completed, and Dream properties should all join World of Hyatt in the near future. Let’s go over all the details.
Dream Hotel Group joins Hyatt portfolio
Hyatt has acquired Dream Hotel Group’s lifestyle hotel brands and management platform, including Dream Hotels, Chatwal Hotels, and Unscripted Hotels, with properties in the Americas, Europe, and Asia.
This asset-light acquisition is initially increasing Hyatt’s portfolio by 12 hotels, with another 24 properties expected to open in the future. This expansion is adding 1,700 rooms to Hyatt’s lifestyle portfolio, and increases Hyatt’s room count in New York City by more than 30%.
Hyatt has paid a base purchase price of $125 million, with up to an additional $175 million paid over the next six years, as properties come into the pipeline and open. Management fees associated with the base purchase price of $125 million are expected to be approximately $12 million per year, and the hope is that this grows to $27 million per year as more properties open.
As I’ll discuss in more detail below, Hyatt is working on adding these properties to the World of Hyatt program, giving members the opportunity to earn and redeem points, and take advantage of elite perks.
The basics of the Dream Hotels portfolio
For those not familiar with Dream Hotels, they’re basically known as party hotels with destination bars and nightclubs. As Hyatt describes it, these hotels are known for their “vibrant dining and nightlife experiences, including hotspot restaurants, lavish entertainment venues, and exclusive night clubs built on strategic collaborations with innovative and award-winning industry leaders.”
While these hotels no doubt have some personality, I would say that they’re more lifestyle properties than luxury properties. To compare them to other major hotel brands, they’re probably most similar to W Hotels or Thompson Hotels.
The Dream Hotels brand is expected to grow significantly, with future locations planned for Atlanta, Cleveland, Dallas, Las Vegas, Louisville, Memphis, Miami, Oklahoma City, Palm Springs, San Antonio, and Valle de Guadalupe.
Here’s how Hyatt CEO Mark Hoplamazian describes this acquisition:
“We have tremendous respect for what Dream Hotel Group founder Sant Singh Chatwal and Chief Executive Officer Jay Stein and their team have created and are grateful for the trust being placed in us by Dream Hotel Group to care for their brands and carry their success forward into the future. We look forward to continuing our growth journey with more than 600 new Hyatt family members who will further elevate our lifestyle expertise and expand the success of our dedicated lifestyle division. We are excited to offer even more inspiring experiences and celebratory programming to our guests and loyalty members and bring the value of the Hyatt network to a growing number of discerning hotel owners and developers around the world.”
Dream Hotels being added to World of Hyatt
12 Dream Hotel Group properties are expected to join World of Hyatt. Among those are the following:
- Dream Hotels currently has properties in Bangkok, Doha, Hollywood, Nashville, New York City (Downtown and Midtown), and South Beach
- Chatwal has properties in New York City and in the Catskills; the Chatwal New York was previously part of Marriott’s Luxury Collection, though that recently changed
- Unscripted Hotels has a property in Durham
However, so far only the Chatwal in New York has been integrated into the World of Hyatt program (that happened as of January 19, 2023). We’re told to expect other properties to begin participating in World of Hyatt “soon,” and I suspect that will happen sooner rather than later (after all, that’s how the hotels will get the most new business).
Even aside from the Chatwal, some other Dream Hotels properties are already starting to show up on hyatt.com. However, it seems that they’re not showing availability through Hyatt’s website yet, and you’re instead being redirected to Dream’s website.
Hyatt has completed its acquisition of Dream Hotel Group. This acquisition initially includes a dozen properties, and we can expect that there are another two dozen properties in the pipeline. Dream Hotel Group is known for its lifestyle hotels, including Dream properties, as well as Chatwal properties.
So far only the Chatwal is participating in World of Hyatt, but other properties should join the program soon. These should be some great additions to Hyatt’s portfolio, especially for those who like lifestyle properties. In particular, it’s impressive to see Hyatt’s continued growth in New York, as it’s amazing how that portfolio has grown over the past decade.
What do you make of Hyatt acquiring Dream Hotel Group?