Awesome: Hyatt Acquires Dream Hotel Group

Awesome: Hyatt Acquires Dream Hotel Group

43

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.

Dream Downtown in New York

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.” 

Chatwal Lodge in The Catskills

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.

Dream Hollywood

Bottom line

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?

Conversations (43)
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  1. DCS Guest

    Maybe he woke up and realized he spent 3+ years of his life in total and $100K chasing something that's free w/ a credit card each year...? :)

    -- UA-NYC

    I know you really long for that to be true, but unless you have been a Diamond for at least 10 years and have accumulated 2M points or 1K nights, you do not get breathe the rarefied air that I just breathed the last...

    Maybe he woke up and realized he spent 3+ years of his life in total and $100K chasing something that's free w/ a credit card each year...? :)

    -- UA-NYC

    I know you really long for that to be true, but unless you have been a Diamond for at least 10 years and have accumulated 2M points or 1K nights, you do not get breathe the rarefied air that I just breathed the last 4 weeks.

    After the automagic suite upgrade at Hilton Singapore Orchard, I indicated that I had two more Hilton stays to test how well the new global automated upgrades work for LT Diamonds: WA Bangkok and Conrad Hong.

    Well, the verdict is in and I got a perfect score on the automagic suite upgrades, including one for a King Executive Harbour Suite that cleared fully 3 days before check-in.

    Like I said, "the Nile" is a river, while "denial" is the state of troll's fevered mind.

    I just took the required COVID test out HKG and going back to SIN on SQ to connect with my nonstop flight back to EWR also on SQ.

    The "reboot" of my Asian Escapade has been nothing short of magical, in large part because of the "red carpet" treatment I just got for being LT Diamond, HH's top tier elite status. Deal with it...

    1. DCAss New Member

      Wow. Who the hell blockquotes another comment and posts another top level thread -- other than a complete self absorbed ass?

    2. DCS Diamond

      @DCAss (seems about right as moniker):
      So, it is okay for a troll to impersonate the real deal, but it's "self-absorbed" for the real deal to provide evidence that so-called "self-absorption" is actually the reality that so unhinges the 'natives' they are howling at the moon?

      Deal with it or get lost.

    3. DCS Diamond

      Don't believe me? Here is the link to screen captures for both the WA BKK and Conrad HK suite upgrades:

      https://bit.ly/3DoN7Ji

      Here are HKG Room Details

      We have one room open for you right now. The upshot? It's your elite Honors upgrade! Continue your check-in and it's yours.
      KING EXECUTIVE HARBOUR SUITE

      See how that works? Any questions?

    4. DCAss New Member

      I have a question. Why are you an ass?

    5. DCS Diamond

      The answer: if you wish to see an ass just take a look in the mirror.
      You addressed me, launching insults, which makes you a troll and an arsehole

      Get lost !

    6. DC Guest

      Ugh, not again with this silliness. Watching the posers and imposters go back and forth is exhausting.

      And again- what does this have to do with an article about an Hyatt acquisition?

      Glad you got some kind of upgrade, whoever you are. And nice to see you're taking time out from this purported trip to scour the comments section. Go sightseeing or on a tour or something. Stop wasting your time here- you're on vacation (supposedly)

    7. DCS Guest

      Impostor - as they say imitation is the most sincere form of flattery. Well, you can only dream of being the real thing.

      What baffles me is why the forum host allows this type of unethical and immortal impersonation. Maybe one should launch some anti-LGBTQ trope to show why this type of impersonation is anathema to the medium to get it stopped?

    8. DCS Diamond

      That's immoral impersonation rather than "immortal" impersonation.

    9. DC Guest

      No, you had it right the first time- it's immortal all right.

      I still find this all strange.

      Which "DCS" is this anyway, the "Diamond", the "guest", the "member"? Can't keep everyone straight.

    10. DCS Diamond

      Which "DCS" is this anyway, the "Diamond", the "guest", the "member"? Can't keep everyone straight.

      @Ben (Lucky): Genug ist genug! Please toss this troll out of here, lest we conclude that this is something that you are sanctioning. It is utterly unethical for anyone to comment in this medium pretending to be someone else. That this person keeps doing it is clear evidence that they are unhinged and do not belong here.

    11. UA-NYC Diamond

      Breaking News - DCS got an upgrade 3 days in advance in *Asia* (literally childs play for any elite in any hotel loyalty program in the region - a pulse gets you at least a junior suite)

      Meanwhile as a Hyatt Globalist you could have gotten that room CONFIRMED a year in advance. NBD it’s just a better program than mediocre Hilton).

  2. Ethan Guest

    And what does the Chatwal have to warrant being a Category 8?
    It's gonna be brutal in March, folks.

  3. Dulles Doldrums Guest

    Hyatt, please turn your focus to expanding in the European market beyond your SLH portfolio. It's 2023 - how are you still absent from cities like Warsaw and Copenhagen, where Marriott and Hilton have high-end properties?

  4. DC Guest

    "For those not familiar with Dream Hotels, they’re basically known as party hotels with destination bars and nightclubs."

    Well, I like Hyatt quite a bit; my go-to chain and the one that I like the most for top tier status. But I think they weren't thinking of me personally when they added this brand! I'm definitely not the target audience....

    1. Never In Doubt Guest

      I await the incoming rage of the "real" DCS in 3, 2, 1...

    2. UA-NYC Diamond

      Maybe he woke up and realized he spent 3+ years of his life in total and $100K chasing something that's free w/ a credit card each year...? :)

    3. DC Guest

      Not sure what these replies mean. This all seems strange to go on about in a thread about a hotel brand acquisition.

      Again, just saying this brand doesn't seem like something I'd seek out.

      Actually, I'd actively avoid "party" hotels. Sounds loud and obnoxious and would probably attract the kind of posers I don't like being around.
      The only thing I like about the concept is that I know which hotel brand to avoid

    4. DCAss New Member

      These replies mean you are an ass. You see my username? I took on the hassle of registering for an actual account just to underscore that you are an ass.

  5. Andrew Diamond

    Category "F" because that's how successful you will be at using your free night certs there. ;-)

  6. DLPTATL Diamond

    Love the Chatwal in NYC! The last couple times we've stayed we've been upgraded on points stays/Platinum members. The last upgrade was to the Zen suite with a huge rooftop deck (unfortunately it was December and really cold and windy so we didn't use it much). The elite breakfast here has always been one of our favorites as it's in the Lambs Club and they do a great job accommodating my GF diet. Not in...

    Love the Chatwal in NYC! The last couple times we've stayed we've been upgraded on points stays/Platinum members. The last upgrade was to the Zen suite with a huge rooftop deck (unfortunately it was December and really cold and windy so we didn't use it much). The elite breakfast here has always been one of our favorites as it's in the Lambs Club and they do a great job accommodating my GF diet. Not in love with their bath products, so maybe an upgrade coming with Hyatt???

  7. CSR 2.0 Guest

    The Chatwal’s points pricing is pretty outrageous compared to the rest of the NY portfolio. Looking in March I see rates in the $400s but 35K points. Hopefully is adjusted soon.

    1. Eskimo Guest

      Back with Bonvoy, it was $700s+ and I believe in the 80-100k points range.

      So I think the cash price you see is 'cheap' now but points is normal.

  8. Eric Guest

    I just wish Hyatt's footprint was dramatically better. They're usually pretty well positioned in most of the cities I visit, but I have a trip planned for next summer where the closest Hyatt is something like 500 miles away. But there's HIX/Hampton/etc. in most of those places.

    1. UA-NYC Guest

      And then they turn into Marriott with a sh!t loyalty program. Pass.

  9. Rewarded Guest

    I think Hyatt is doing some interesting stuff with its acquisitions. I know people (including me) want them to massively increase their footprint, but I see the value of rounding out their portfolio like this. This will allow them to reach customers they haven't been able to target before and bring them into the Hyatt ecosystem. It's arguably a better tactic than just buying a chain with a huge number of properties, that doesn't really...

    I think Hyatt is doing some interesting stuff with its acquisitions. I know people (including me) want them to massively increase their footprint, but I see the value of rounding out their portfolio like this. This will allow them to reach customers they haven't been able to target before and bring them into the Hyatt ecosystem. It's arguably a better tactic than just buying a chain with a huge number of properties, that doesn't really offer anything unique or attract a new customer base.

  10. Andrew Diamond

    "In other news, we're adding a Category 9."

  11. Ryan Guest

    They're not really building a Dream Hotel in Dallas. They're building it in Frisco (or at least they're scheduled to break ground in 2023 in Frisco). Frisco to Dallas, at the odd chance of zero traffic, is at least 30 minutes by car.

  12. GUWonder Guest

    It’s the founding Chatwal’s son that is running the Chatwal hotel show and into flashiness and the party scene. But the chance to be more W than W has already passed its prime.

    Hyatt has money and interest to expand, and the leveraged Chatwals needed financial assistance to stay in the game in this environment with a recession looming. A good match for the time.

  13. Bobby J Guest

    More JdV or Unbound collection hotels in markets well-represented by Hyatt. Yet in other major and middle-tier cities, Hyatt is very conspicuously absent or woefully inadequate. St. Louis, Detroit, Columbus, Philadelphia, and Pittsburgh are glaring examples of this. In St. Louis, Philadelphia, and Pittsburgh, even Accor is ahead of Hyatt - with far more valuable points, too.

  14. Anthony Diamond

    FNT

    1) How do you know business travelers don't like hotels like the ones in the Dream portfolio?

    2) There are hundreds of thousands of Hyatt Place, Hilton Garden Inn, Courtyard, etc across the world for business travelers, and they keep getting built. Those are business traveler brands

    On a pure hotel addition basis these are good hotels for earning and redeeming points. Nothing wrong with that at all

    1. FNT Delta Diamond Guest

      "Party hotels with destination bars and nightclubs" aren't where road warriors stay.

      There are not "hundreds of thousands" of Hyatt Place properties; let alone the other brands you said.

      Hyatt's biggest problem that they continue avoiding is a lack of full-service hotels in large swaths of the United States. I have never understood how there is a Hyatt Regency in Algeria, but not a Grand Hyatt or Hyatt Regency in Ottawa, Paris (outside airport), downtown...

      "Party hotels with destination bars and nightclubs" aren't where road warriors stay.

      There are not "hundreds of thousands" of Hyatt Place properties; let alone the other brands you said.

      Hyatt's biggest problem that they continue avoiding is a lack of full-service hotels in large swaths of the United States. I have never understood how there is a Hyatt Regency in Algeria, but not a Grand Hyatt or Hyatt Regency in Ottawa, Paris (outside airport), downtown Pittsburgh, Detroit, Grand Rapids, Montreal, etc.

    2. Points Adventure Guest

      RIP 8k HR Montreal.

    3. reddargon Diamond

      @FNT Minor nitpick, but Paris does have a Hyatt Regency--the Hyatt Regency Etoile. I'm not sure why you picked that brand though, there are several other Hyatts that aren't the Park Hyatt in Paris. Hyatt Regency also has the benefit of being only a category 4. I haven't actually stayed there, but almost did a staycation there one year when a cat 4 reward was going to expire. Ended up using it on the Hyatt Regency Chantilly, which is sadly no longer with Hyatt

    4. OCTinPHL Gold

      @Anthony - FNT's point is very valid. No doubt (in Lucky's mind and that of many bloggers) that Hyatt is better for elites than Hilton. Both in number of properties and the program. For someone like me, however, I can find a Hampton Inn in any place I need to go for work (or pleasure). Unlike Hilton-brand properties, Hampton Inns are pretty uniform - I know what I am getting. The massive footprint (like Marriott)...

      @Anthony - FNT's point is very valid. No doubt (in Lucky's mind and that of many bloggers) that Hyatt is better for elites than Hilton. Both in number of properties and the program. For someone like me, however, I can find a Hampton Inn in any place I need to go for work (or pleasure). Unlike Hilton-brand properties, Hampton Inns are pretty uniform - I know what I am getting. The massive footprint (like Marriott) allows someone like me (who pays for work travel out of my own pocket) to stay at a Hilton property like a Hampton in Harrisburg PA and accrue Hilton points and benefits to stay at the Beverly Hill's Waldorf. I can't do that with Hyatt because of its smaller footprint. Sure, there are other ways, but FNT's point is spot on - road warriors (whether OPM or not) want to stay at "their" brand to then accrue points / benefits for staying at aspirational properties. Hyatt's focus doesn't benefit that type of traveller.

    5. Anthony Diamond

      Oct - I don't think we disagree that much. In your case, you stay with Hilton for Hampton Inn - not the Hilton brand (which is the equivalent of Hyatt Regency) - because there are a ton of them and they fit your travel patterns. It is probably too late for Hyatt to build a ton of Hyatt Regency hotels, which would be located in most of the major US cities. The can build more...

      Oct - I don't think we disagree that much. In your case, you stay with Hilton for Hampton Inn - not the Hilton brand (which is the equivalent of Hyatt Regency) - because there are a ton of them and they fit your travel patterns. It is probably too late for Hyatt to build a ton of Hyatt Regency hotels, which would be located in most of the major US cities. The can build more Hyatt Places and Hyatt Houses, which they are doing. What Hyatt is doing with these lifestyle acquisitions is building a pretty good portfolio of places to redeem points, which is probably their best strategy. They are not going to be the choice of the US based road warrior, not for a long time, but it doesn't mean this deal doesn't add to the program or won't attract the lifestyle customer (many of whom also travel for business)

    6. FNT Delta Diamond Guest

      Let's be clear. Hyatt doesn't build any Hyatt House or Hyatt Place properties. Those hotels are almost exclusively built by developers and operated by them or a third-party management company like Aimbridge.

      To Hyatt's credit unlike Marriott or Hilton, most full-service Hyatts (Hyatt, Grand Hyatt, Hyatt Regency, Park Hyatt) are managed by Hyatt and not a franchisee or a third-party management company. However, Hyatt still needs an owner.

      Most hotel owners/developers seem to...

      Let's be clear. Hyatt doesn't build any Hyatt House or Hyatt Place properties. Those hotels are almost exclusively built by developers and operated by them or a third-party management company like Aimbridge.

      To Hyatt's credit unlike Marriott or Hilton, most full-service Hyatts (Hyatt, Grand Hyatt, Hyatt Regency, Park Hyatt) are managed by Hyatt and not a franchisee or a third-party management company. However, Hyatt still needs an owner.

      Most hotel owners/developers seem to have stopped building full-service hotels in Canada and the United States. That obviously hurts Hyatt. I think the reason why is a combination of factors.

      First, labor costs are very high. A limited-service branded hotel makes owners as much or more money with reduced costs. It is very difficult to properly staff a full-service hotel, especially at the high-end brands, right now in the United States.

      Second, I suspect many owners/developers feel the local market can't support another full-service hotel even if the labor costs aren't a factor.

      Who wants to open a Hyatt Regency, Sheraton or J.W. Marriott right now in a downtown major city? I wouldn't. That doesn't mean there aren't markets for Hyatt to expand.

      Look at Toronto. There is are two Hyatts; a Park Hyatt and a tired, old Hyatt Regency that used to be a Holiday Inn. Hyatt could easily have a Hyatt or Hyatt Regency elsewhere in the Toronto area. The Hyatt Place Toronto/Mississauga Centre is a perfect example. That should be a full-service hotel.There isn't any full-service Hyatt in Ottawa, Montreal or Quebec City.

      Hyatt should have bought Radisson. There are quite a few Radisson and Blu
      Radisson properties that with investment could have converted to Hyatt or Hyatt Regency.

      I have to imagine there are quite a few Marriott owners not happy with Marriott's endless brand addition. Yes, some of those properties are dumpy (think the old Marriotts and Sheratons) but you have to think there are some Marriott brands in markets that could be converted to a Hyatt brand.

    7. Janet Guest

      There is a Hyatt Centric in Montreal, with a restaurant. Generally I have been pleased with the Centric brand. There is an Andaz in Ottawa; while the restaurant is closed on Sunday evenings, there are tons of restaurants nearby. There is a new Grand Hyatt at SFO… So it is not a disaster. I have found the Small Luxury Hotels a great place to stay. The lack of good full-service hotels is a US problem - hotels in Asia and Europe are generally much better.

  15. FNT Delta Diamond Guest

    Hyatt once again shows that its only path forward are leisure and limited-service properties. Think resorts, all-inclusives and Hyatt Place/Hyatt House. Nobody seems interested in developing new full-service hotels for the Hyatt Regency, Hyatt and Grand Hyatt brand.

    All of the additions over the past couple years are great for vacationers but not so great for business travelers.

    1. FNT Delta Diamond Guest

      And what's with copying Marriott and adding yet more brands? Why not consolidate all of the leisure additions into one or two brands?

    2. Jorge Bours Guest

      they will probably have a couple of categories for them but consolidating all of there more boutique style hotels would make them lose its attraction,

    3. Mike Guest

      I think what you are seeing now is their pre-covid strategy and the desire to compete with airbnb. I don't think they expected to see the outrageous profits luxury hotels are making now and the ridiculous prices people are willing to pay.
      Or, alternatively, their research is showing that the current demand and room pricing is unlikely to continue for much longer. Wouldn't surprise me at all - i have just realized how much I spent on travel last year... Painful

  16. Jill Guest

    Looks like Marriott is losing the Chatwal luxury collection to be now with Hyatt

Featured Comments Most helpful comments ( as chosen by the OMAAT community ).

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FNT Delta Diamond Guest

"Party hotels with destination bars and nightclubs" aren't where road warriors stay. There are not "hundreds of thousands" of Hyatt Place properties; let alone the other brands you said. Hyatt's biggest problem that they continue avoiding is a lack of full-service hotels in large swaths of the United States. I have never understood how there is a Hyatt Regency in Algeria, but not a Grand Hyatt or Hyatt Regency in Ottawa, Paris (outside airport), downtown Pittsburgh, Detroit, Grand Rapids, Montreal, etc.

4
FNT Delta Diamond Guest

Hyatt once again shows that its only path forward are leisure and limited-service properties. Think resorts, all-inclusives and Hyatt Place/Hyatt House. Nobody seems interested in developing new full-service hotels for the Hyatt Regency, Hyatt and Grand Hyatt brand. All of the additions over the past couple years are great for vacationers but not so great for business travelers.

2
FNT Delta Diamond Guest

Let's be clear. Hyatt doesn't build any Hyatt House or Hyatt Place properties. Those hotels are almost exclusively built by developers and operated by them or a third-party management company like Aimbridge. To Hyatt's credit unlike Marriott or Hilton, most full-service Hyatts (Hyatt, Grand Hyatt, Hyatt Regency, Park Hyatt) are managed by Hyatt and not a franchisee or a third-party management company. However, Hyatt still needs an owner. Most hotel owners/developers seem to have stopped building full-service hotels in Canada and the United States. That obviously hurts Hyatt. I think the reason why is a combination of factors. First, labor costs are very high. A limited-service branded hotel makes owners as much or more money with reduced costs. It is very difficult to properly staff a full-service hotel, especially at the high-end brands, right now in the United States. Second, I suspect many owners/developers feel the local market can't support another full-service hotel even if the labor costs aren't a factor. Who wants to open a Hyatt Regency, Sheraton or J.W. Marriott right now in a downtown major city? I wouldn't. That doesn't mean there aren't markets for Hyatt to expand. Look at Toronto. There is are two Hyatts; a Park Hyatt and a tired, old Hyatt Regency that used to be a Holiday Inn. Hyatt could easily have a Hyatt or Hyatt Regency elsewhere in the Toronto area. The Hyatt Place Toronto/Mississauga Centre is a perfect example. That should be a full-service hotel.There isn't any full-service Hyatt in Ottawa, Montreal or Quebec City. Hyatt should have bought Radisson. There are quite a few Radisson and Blu Radisson properties that with investment could have converted to Hyatt or Hyatt Regency. I have to imagine there are quite a few Marriott owners not happy with Marriott's endless brand addition. Yes, some of those properties are dumpy (think the old Marriotts and Sheratons) but you have to think there are some Marriott brands in markets that could be converted to a Hyatt brand.

1
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