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Hyatt Acquires Two Roads Hospitality (integration WoH in 2019)

Hyatt Acquires Two Roads Hospitality (integration WoH in 2019)

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Old Oct 8, 18, 1:02 am   -   Wikipost
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Hyatt is acquiring Two Roads Hospitality, which was formed in 2016 with the merger of Destination Hotels and Commune Hotels + Resorts. Its brands include Joie de Vivre Hotels, Thompson Hotels, Destination Hotels, tommie, and Alila Hotels & Resorts. Hyatt said it will bring Two Roads properties and its lifestyle brands together in a “dedicated lifestyle division” following the merger.

News coverage at Hyatt to Acquire Lifestyle Hotelier Two Roads and Hyatt Hotels To Acquire Two Roads Hospitality
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Old Oct 7, 18, 7:07 am
  #1  
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Hyatt Acquires Two Roads Hospitality (integration WoH in 2019)

https://viewfromthewing.boardingarea...ivre-and-more/

They don't seem very good at closing these kinds of deals....
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Old Oct 7, 18, 7:45 am
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Originally Posted by lighthouse206 View Post

They don't seem very good at closing these kinds of deals....
Almost by definition any company that wins an auction has overpaid...

Overpay for an asset and then have to cost cut to make up the savings. (i.e. Marriott / SPG) No thanks...
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Old Oct 7, 18, 9:00 am
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Originally Posted by craigthemif View Post
Almost by definition any company that wins an auction has overpaid...

Overpay for an asset and then have to cost cut to make up the savings. (i.e. Marriott / SPG) No thanks...
True, and from that standpoint I’d tend to agree. That said, these guys have some interesting properties. Could be some future Andaz and Park Hyatts...
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Old Oct 7, 18, 9:06 am
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Yeah I saw that article a few days ago and honestly, it does zero for me. I really do not need 17 properties in Bali. Does not add anything really in places they need for the most part. I would hate to see a large cost or debt expenditure for something that really does not help. The ones I wished they would buy like Radisson or NH they failed on. This seems like its like a quarter of the properties in Bali or Vail and then some random stuff in places the mostly have properties already.
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Old Oct 7, 18, 9:16 am
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Originally Posted by antonius66 View Post
Yeah I saw that article a few days ago and honestly, it does zero for me. I really do not need 17 properties in Bali. Does not add anything really in places they need for the most part. I would hate to see a large cost or debt expenditure for something that really does not help. The ones I wished they would buy like Radisson or NH they failed on. This seems like its like a quarter of the properties in Bali or Vail and then some random stuff in places the mostly have properties already.
Radisson or NH would have been a lot better. I really think the Pritzker situation is the barrier to these deals (which is both bad and good as they are also probably the reason Hyatt hasn’t been acquired itself)... and I think most of prefer Hyatt stays independent...
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Old Oct 7, 18, 9:24 am
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I don't share the skepticism here. An acquisition like this will/would bring a lot of really nice properties to the program.
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Old Oct 7, 18, 10:32 am
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I'd thought Destination Hotels was under Loews. I got put up at the Hotel Derek in Houston once and it was a pretty awful property, basically a wannabe W but without any of the (few) redeeming features of a typical W.

No idea where Joie de Vivre properties will fit in with Hyatt's brands. Joie de Vivre is best known for doing lipstick-on-a-pig renovations on run-down Best Westerns and posing them as boutiques.

I'm not familiar with Alila/Thompson, but if Destination/Joie de Vivre is really what Hyatt is going after, I'm a bit concerned for the future of the company.
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Old Oct 7, 18, 10:42 am
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Originally Posted by lighthouse206 View Post


Radisson or NH would have been a lot better. I really think the Pritzker situation is the barrier to these deals (which is both bad and good as they are also probably the reason Hyatt hasn’t been acquired itself)... and I think most of prefer Hyatt stays independent...
I would welcome a Hyatt acquisition of Two Roads, because the portfolio additions to the Hyatt loyalty program would work for me.

The cap table structure at Hyatt just doesn't provide a very good currency for acquiring targets without using debt and/or running down cash/cash-equivalents. But then again, maybe the sellers don't really care when the USD is strong and/or poised to rise and when being a bit player on the global stage comes with a lower value than being part of a bigger player on the global stage.

Unlike with the Marriott/Starwood combination, I would not expect a Hyatt merger or acquisition of Two Roads to be as bad for loyalty program customers as the Marriott/Starwood combination has been for the MR/SPG customers with the biggest point balances.
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Old Oct 7, 18, 10:46 am
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And what happened to the rumored Belmond (Orient Express) acquisition?

https://www.flyertalk.com/forum/30067826-post25.html
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Old Oct 7, 18, 10:48 am
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Originally Posted by gengar View Post
I'd thought Destination Hotels was under Loews. I got put up at the Hotel Derek in Houston once and it was a pretty awful property, basically a wannabe W but without any of the (few) redeeming features of a typical W.

No idea where Joie de Vivre properties will fit in with Hyatt's brands. Joie de Vivre is best known for doing lipstick-on-a-pig renovations on run-down Best Westerns and posing them as boutiques.

I'm not familiar with Alila/Thompson, but if Destination/Joie de Vivre is really what Hyatt is going after, I'm a bit concerned for the future of the company.
Have heard lots of bad things about the Derek, but the San Antonio property at La Canterra is very very nice and would make a great Hyatt Regency. I could see Derek as a Centric or even Andaz with a renovation...
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Old Oct 7, 18, 10:56 am
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Originally Posted by lighthouse206 View Post
Have heard lots of bad things about the Derek, but the San Antonio property at La Canterra is very very nice and would make a great Hyatt Regency. I could see Derek as a Centric or even Andaz with a renovation...
Yeah, I guess some low-end boutiques could possibly fit in as Centric. Still not sure about Joie de Vivre at all.
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Old Oct 7, 18, 2:37 pm
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Originally Posted by MarkOK View Post
I don't share the skepticism here. An acquisition like this will/would bring a lot of really nice properties to the program.
Two Roads won't move the needle regardless.

Now the SLH deal has the potential for being a real win-win, without tying up capital or requiring cost cuts...
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Old Oct 7, 18, 5:11 pm
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Originally Posted by lighthouse206 View Post
Have heard lots of bad things about the Derek, but the San Antonio property at La Canterra is very very nice and would make a great Hyatt Regency. I could see Derek as a Centric or even Andaz with a renovation...
The Derek is about a half mile from the less than 3 year old new construction Hyatt Regency Houston Galleria and Hyatt Place Houston Galleria, and about a mile to the older converted Hyatt House Galleria. I'm not sure another Hyatt is needed in that vicinity, regardless of brand.
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Old Oct 8, 18, 7:35 am
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Press Release is out.

Two Roads Acquisition
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Old Oct 8, 18, 8:13 am
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This acquisition might not move the needle a ton, but Hyatt will getting some great properties to it's portfolio. Having stayed at numerous of the Thompson Hotels, they are fantastic properties. And a couple of them are beautiful five star resort properties including The Cape, a Thompson Hotel in Cabo San Lucas.

Just off the top of my head, some of the other hotels and resorts that will be great additions are the L'Auberge de Sedona, Carmel Valley Ranch, Terranea Resort and the Cliff House in Maine, just to name a few.
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