by Michael J. Shapiro | October 08, 2018
Hyatt Hotels Corp. is acquiring Two Roads Hospitality, the hotel management company that includes the lifestyle brands Joie de Vivre and Thompson. This latest move in the hospitality consolidation frenzy will provide Hyatt with more cachet in the upscale lifestyle/boutique market, and expand the company's footprint into 23 new destinations.
Hyatt is buying the management agreements for the majority of Two Roads' 85 properties in eight countries for a base price of $480 million plus potentially an additional $120 million, contingent on certain terms that will be worked out after closing. In addition to the Joie de Vivre and Thompson brands, the Two Roads portfolio also includes Alila, eco-friendly luxury hotels that are largely in South Asia and the Middle East; Destination Hotels, a collection of luxury and upscale independent hotels, resorts and vacation residences; Tommie, a lifestyle micro hotel brand; and a number of affiliate properties. Hyatt has not yet detailed which contracts are included in the deal.
"Hyatt and Two Roads share a commitment to genuine care and delivering distinctive experiences to discerning travelers," said Hyatt president and CEO Mark Hoplamazian. "We are pleased to be coming together, and are dedicated to learning from each other and taking the best of both organizations forward." 
According to Hoplamazian, Hyatt's expansion strategy relates both to brand segment and geography. "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," he said. "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."
The deal is the latest in a trio of acquisitions Hyatt has made to bolster its position in the wellness and lifestyle markets, beginning with the January 2017 purchase of Miraval Group and continuing with the August 2017 deal to acquire the spa and fitness brand Exhale. Hyatt briefly made a play this past summer for the Spanish hotel chain NH, as well, but later backed off.
Hyatt expects the Two Roads deal to close later this year. The company will provide more detailed information about the acquisition during its third-quarter earnings call scheduled for Oct. 31.