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It was announced earlier today, and further details known in Hyatt’s 10/31/2018 earnings call, that Hyatt has purchased “Two Roads Hospitality.” Two Roads focuses on lifestyle hotels, chic bars and restaurants, resorts and vacation residences, and will add 85 new hotels in 23 new markets to Hyatt’s portfolio. This is a big win for the vacation set, and those looking to earn and burn Hyatt points, as well as find an easier path to status.
The biggest complaint with Hyatt loyalists, myself included, is that the barrier to status is too high considering the small footprint of hotels. Hyatt lost out to Marriott on the SPG merger, but has begun to retool the program to placate complaints, and pave a an easier road to elite qualification – notably the ability to earn elite nights from award stays was great improvement.
Prior to this deal, Hyatt announced a great partnership with SLH ( Small Luxury Hotels ) that would allow elite status to be achieved, and points to be earned and burned at SLH’s 500+ hotel network.
The acquisition consists of a base purchase price of $480 million, with the potential for Hyatt to invest up to an additional $120 million in the aggregate, contingent on the outcome of certain terms to be individually defined after closing. The base plus contingent total purchase price is expected to reflect an EBITDA multiple of approximately 12-13x stabilized 2021 earnings, which Hyatt considers the best indicator of valuation based on anticipated synergies and growth.
What can we expect with Two Roads:
Joie de Vivre Hotels, Thompson Hotels, Destination Hotels, Tommie, Alila Hotels & Resorts, along with the Chicago Athletic Association and and suite of restaurants and bars.
These hotels are aesthetically very different from the vast majority of Hyatt’s current steed, and will add a boutique and chic luxury dimension to Hyatt’s growing portfolio.
As an Angeleno I’m particularly excited about using points to stay at staycation favorite Terranea which is a part of Two Roads “Destination Hotels.” It’s one of my favorite best resorts in Socal and knowing I can use points to stay at Terranea in the future, is pretty dope.
Hyatt wasn’t alone, Chase got a needed win as well.
Chase lost an uber valuable partner in Korean Air, and as a result its Ultimate Reward program became less valuable. Amex then released a Reserve killer with its new Gold Card.
Most people look to utilize award points for vacation use. When Hyatt adds 85 properties mostly catered to lifestyle, Hyatt doesn’t just win, Chase does as well. And not just because of their Ultimate Reward program.
Chase debuted a winner with the new World of Hyatt card – it just got more valuable as well. While we don’t quite know the redemption level of these hotels, or the SLH properties, it’s only a matter of time before we see how extensive the options will become, and for those looking to utilize points for great vacations – your options have nearly doubled in the past couple of months.
*feature image courtesy of Terranea