Hyatt acquires Two Roads Hospitality, an international hotel management company

The Alila, Destination, Joie de Vivre, Thompson and tommie brands strengthen Hyatt's leisure, lifestyle and wellness offering for high-end travelers around the world.
Hyatt Hotels Corporation has announced the signing of an agreement to acquire Two Roads Hospitality, an international hotel management company that owns a collection of unique brands and hotels, as well as a strong international development pipeline.

Through the acquisition of Two Roads (85 hotels located in eight countries), Hyatt will expand its presence into 23 new markets while enhancing its hospitality and wellness experiences for its guests. With Two Roads and its collection of hotels, resorts and vacation residences, Hyatt will offer a broader and more powerful portfolio of brands providing guests and World of Hyatt members with best-in-class experiences and benefits.

It will also further develop its privileged relationship with hotel owners and drive growth for its shareholders.

?Hyatt and Two Roads share a common commitment to delivering unique and authentic experiences to discerning travelers. We are delighted about this alliance and are determined to learn from one another to advance the best of both our companies,? said Mark Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation.

?The passionate members of the Two Roads team, its powerful brands, its global presence and its strong development pipeline will allow us to broaden our ?Lifestyle’ offering and increase the presence of the Hyatt brand in more of the destinations where our guests and World of Hyatt members want to travel.

Combining the Two Roads brand presence and its development plans in Asia with Hyatt's already strong position in the region will allow us to accelerate our expansion in this critically important and fast-growing part of the world.?

The acquisition consists of a base purchase price of 480 million dollars, with the possibility for Hyatt to invest up to an additional 120 million dollars in the aggregate, depending on the outcome of certain conditions to be determined individually after closing.

The total base purchase price plus the total contingent purchase price is expected to reflect an EBITDA multiple of approximately 12-13 times stabilized earnings in 2021, which Hyatt considers the best valuation indicator, based on expected synergies and growth.

In line with Hyatt's long-term growth strategy to create shareholder value, this investment in a high-growth, asset-light platform accelerates the Group's shift toward a more fee-based business, funded by proceeds from an asset disposition program in which real estate has been monetized at an average multiple of approximately 16,5 times EBITDA to date.

In particular, Hyatt is making this growth investment in a year in which it has committed to return approximately 800 million dollars of capital to shareholders through a combination of share repurchases and a cash dividend.

Following completion of the transaction, which is expected to occur later this year, Hyatt will create a ?Lifestyle? division, which will serve as a catalyst for bringing together the businesses of the Two Roads and Hyatt lifestyle brands.

?Hyatt is an ideal home for us, as we share many values and a deep commitment to thoughtful growth and to creating rewarding experiences for our guests,? said Jamie Sabatier, Chief Executive Officer of Two Roads Hospitality.