Hyatt to Buy Dream Hotels in Up to $300 Million Deal

Hyatt Hotel Corp. said on Tuesday it would acquire Dream Hotel Group’s lifestyle hotel brands, including Dream Hotels, The Chatwal Hotels, and Unscripted Hotels.

Hyatt would spend $125 million for the Dream Hotel Group’s dozen open hotels, with more than 1,700 guest rooms worldwide. Once fully on-boarded, Hyatt would generate management fees of about $12 million a year on the first dozen hotels.

The deal also gives Hyatt the option to buy two dozen signed long-term management agreements for planned hotels. If it opts for this contingency, it will pay an additional $175 million, boosting its annual management fees to about $27 million a year once the properties are fully absorbed.

The overall deal would add over 1,700 rooms to Hyatt’s lifestyle portfolio, and it would boost Hyatt’s room count in New York City by more than 30 percent.

Dream Founder and Chairman Sant Singh Chatwal will remain the owner of four open Dream hotels and two planned ones.

Hyatt has been growing partly through acquisitions. It recently tucked in lifestyle group Two Roads Hospitality in 2018 for $408 million, Apple Leisure Group in 2021 for $2.7 billion, and (via a partnership), the brands of German Lindner Hotels.