Hyatt has 821 hotels around the globe. It has 28 properties in India. Hyatt has been for a long time looking to expand its portfolio significantly by taking over other niche hospitality chains. They don’t have a significant presence in Europe, Africa and South America after all. Hyatt has entered into a range of partnerships over the years to expand its presence, such as their partnership with one with MGM hotels and with Small Luxury Hotels Conglomerate. They used to have one with Oasis Collections also.
Hyatt has just bought Two Road Hospitality for a sum of $480 million. Does Alila ring a bell? It is a brand of Two Roads Hospitality. Two Roads Hospitality has a portfolio of close to 100 hotels in 8 countries under Alila, Destination, Joie de Vivre, Thomson, Tommie and some other management contracts. Under this deal, 85 hotels will be a part of the Hyatt group. The deal excludes some contracts since Two Roads Hospitality manages these hotels for some other chains such as DoubleTree by Hilton.
Two Roads have a considerable presence in USA and Asia, both being strong markets for Hyatt. This deal will help Hyatt expand to 23 new markets. It will help Hyatt expand in the Luxury segment, but not in the midscale segment, which is fast growing. Alila has two properties in India: Alila Diwa Goa and Alila Fort Bishangarh, Jaipur. And these will now come under Hyatt. So, after losing the Park Hyatt, Hyatt is back with a Luxury property in Goa. Too soon?
All the hotels will join the World of Hyatt program in 2019. It is good news for World of Hyatt members as they would be reaping the benefits of the program in some of the finest hotels in the world. Alila properties in India and Indonesia are popular among Indian tourists so it will be an added perk.
On a side note, this deal is kind of an inside transfer as John Pritzker is a majority shareholder in Two Roads Hospitality and Pritzker family is the owner of Hyatt Hotels Corporation.
This acquisition is a good fit in Hyatt’s portfolio. It will help Hyatt expand even further in the luxury segment, and is good news for World of Hyatt members. This still won’t give Hyatt the Europe presence that the group is longing for. Stay tuned for more expansion as almost every hospitality group is in expansion mode following the Marriott-Starwood merger.
Have you stayed at a Two Road Hospitality group Hotel before? How was your experience?