During Hyatt Hotels Corp.'s third-quarter earnings call on
Tuesday, president and CEO Mark Hoplamazian shared additional details about the
company's planned acquisition of Two Roads Hospitality, which Hoplamazian said
was "two to three weeks away."
Hyatt announced plans to acquire the hotel management
company in early October. It would add five new brands to Hyatt's portfolio:
Alila, Destination Hotels, Joie de Vivre, Thompson Hotels and Tommie.
On the call with analysts, Hoplamazian said the deal aligned
well with Hyatt's strategy. Two Roads is "a collection of very strong
brands that are performing very well," he said, "but with an embedded
pipeline, and we believe that there is significant further growth embedded in
these brands globally."
The brands sit in a similar average daily rate range as
Hyatt's full-service luxury and lifestyle hotels. Two Roads' current customer
base "is an enhancement to our current customer base and represents a
significant measure of additional opportunities for our existing guest and
customer base," Hoplamazian said.
Another appeal of Two Roads is that it's asset-light. During
an earnings call in August, Hoplamazian detailed the company's brief interest
in acquiring NH Hotels Group. That deal fell apart, but he said then that the
company would continue to explore asset-light growth opportunities. Hyatt,
which has traditionally owned a greater share of its portfolio than its competitors,
is in the process of selling off some of its owned hotels.
After the deal closes, Hyatt's portfolio will expand to 19
brands across more than 800 properties globally, a boost from the more than 750
properties it has currently.
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Source: Business Travel News