Hyatt Hotels Corporation has announced an agreement to acquire lifestyle hotel management company Two Roads Hospitality for a base price of $480 million.

Through the acquisition, Hyatt will add Two Roads' 85 properties in eight countries to its portfolio, expanding its brand presence into 23 new markets.

The deal, expected to close by the end of this year, offers Hyatt the option to invest up to an additional $120 million, contingent on the outcome of certain terms to be individually defined after closing.

After the close of the transaction, Hyatt will create a dedicated lifestyle division to bring together the operations of Two Roads’ and Hyatt’s lifestyle brands.

“Hyatt and Two Roads share a commitment to genuine care and delivering distinctive experiences to discerning travellers. We are pleased to be coming together, and are dedicated to learning from each other and taking the best of both organisations forward,” said Mark Hoplamazian, president and chief executive officer, Hyatt Hotels Corporation. “Two Roads’ passionate team members, strong brands, global footprint and robust development pipeline will expand our lifestyle offerings and grow Hyatt’s brand presence in more places where our guests and World of Hyatt members want to travel. Importantly, combining Two Roads’ meaningful brand presence and development plans in Asia with Hyatt’s already strong position in this region will allow us to accelerate expansion in this critically important and fast-growing part of the world.”

“Hyatt is an ideal home for us as we share many values and a deep commitment to thoughtful growth and creating compelling experiences for our guests,” said Jamie Sabatier, chief executive officer, Two Roads Hospitality. “Hyatt’s unique position in the marketplace brings with it the powerful benefit of global scale while maintaining meaningful personal relationships with team members, guests and owners.”

Hyatt plans to integrate Two Roads brands into the World of Hyatt program in 2019, 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 travellers who spend more, stay more and book directly. - TradeArabia News Service