DREAM HOTEL GROUP acquired by HYATT

Hyatt Hotels agreed in November 2022 to acquire the lifestyle hotel brands and management platform of Dream Hotel Group, and completed the transaction on 2 February 2023. The perimeter covered the Dream Hotels, The Chatwal and Unscripted Hotels brands, twelve operating hotels, nine of them managed and three licensed, and twenty-four signed long-term management agreements for properties still to open. The addition brought more than 1,700 rooms into Hyatt’s lifestyle portfolio and raised its room count in New York by over 30%. Hyatt paid a base price representing an enterprise value of $100–350M, with a further contingent amount payable over six years as the pipeline properties opened. Management fees from the acquired business were expected to stabilise at around $12 million a year, rising to some $27 million if the contingent consideration were paid in full, implying an acquisition multiple in the high single digits on projected stabilised earnings. The purchase was asset-light, consistent with a strategy Hyatt had pursued through Two Roads Hospitality in 2018 and Apple Leisure Group in 2021. It added more than 600 employees and took the group into Nashville, Hollywood, South Beach, Durham and the Catskills, with signed contracts covering Las Vegas, Saint Lucia and Doha. Founder Sant Singh Chatwal kept ownership of four operating hotels and two others due to join the Hyatt portfolio. Chief executive Jay Stein joined Hyatt to lead the integration as head of Dream Hotels, with David Kuperberg taking development and Michael Lindenbaum operations for the brands.

By taking control of Dream Hotel Group, Hyatt continues its expansion strategy. Previously, the group had completed 2 acquisitions, including Apple Leisure Group in 2021.