Hospitality giant Hyatt Hotels & Resorts is acquiring Dream Hotel Group’s lifestyle hotel brand and management platform, including Dream Hotels, The Chatwal Hotels, and Unscripted Hotels brands, in a deal that could reach as high as $300 million.
“This asset-light acquisition will include a portfolio of 12 managed or franchised lifestyle hotels, with another 24 signed long-term management agreements for hotels expected to open in the future,” stated a November 29 press release from Hyatt.
Earlier this year, Dream Hotel revealed plans to build a 200-room hotel in Frisco in the first phase of a planned 230-acre mixed-use development. Known as Firefly Park, the site is located at the southwest corner of the Dallas North Tollway and U.S. Highway 380, north of the headquarters for the Dallas Cowboys and the PGA of America.
Referring to the planned site, Dream Hotel Group CEO Jay Stein was encouraged by his potential future neighbors.
“With what’s going on with Jerry Jones and the Cowboys facility and the PGA, we were already comfortable with why Frisco would be a good location,” said Stein.
The Frisco location, which is set to break ground in 2023, is not the only project in the works for Dream Hotels. The chain has also announced plans to build a new hotel in Dallas’ Uptown district, in addition to 22 other properties outside North Texas.
According to its website, Dream Hotel Group welcomes “guests in the bustling atmosphere of New York City, on the colorful streets of Bangkok and nearly anywhere in-between.” Now, these properties spanning the globe will add over 1,700 rooms to Hyatt’s portfolio. In New York City alone, Hyatt will expand the number of rooms under its brand by nearly a third.
Chairman and founder of the Dream Hotel Group, Sant Sing Chatwal, said Hyatt’s brand is the ideal new home for the hotel group he founded in 1986 when he purchased the Best Western President Hotel in Manhattan.
“As an owner of Dream Hotel Group properties, I look forward to the next part of our journey and am confident there is a bright future ahead for our hotels, owners, guests, and team members as part of the Hyatt family,” Chatwal said in a statement.
The deal announced Tuesday entails Hyatt spending $125 million initially for the dozen Dream Hotel locations currently in operation. These 12 locations are expected to generate $12 million per year in management fees.
A further option will allow Hyatt to absorb two dozen other properties currently in planning phases for an additional $175 million. This subsequent portion of the deal would bring total management fees to roughly $27 million.
As of December 31, 2021, Hyatt Hotels Corporation operated over 1,150 hotels and all-inclusive properties across 70 countries.