TWO ROADS HOSPITALITY acquired by HYATT

Hyatt Hotels completed on 30 November 2018 the acquisition of Two Roads Hospitality, the lifestyle hotel management company, at an enterprise value of $300–700M, with further consideration payable later. The price had been reduced before closing, as certain properties left the perimeter, among them hotels not operated under the Two Roads brands and others that were to remain managed or licensed by an affiliate of the sellers. Hyatt expressed the valuation as an EV/EBITDA multiple of 10x–18x on expected 2021 earnings, rather than on current results, taking into account the synergies and growth it anticipated. The purchase brought Hyatt management and licence agreements for 74 operating hotels in North America and Asia, and took its brands into 23 new markets. The group set up a dedicated lifestyle division combining the Two Roads brands with its own, and the acquired hotels were to join its loyalty programme, giving members more leisure destinations. Goldman Sachs acted as exclusive financial adviser to Hyatt, with Latham & Watkins as legal counsel, while Moelis & Company advised Two Roads Hospitality, represented by Skadden, Arps, Slate, Meagher & Flom.