It's a done deal. Hyatt Hotels Corporation has completed its acquisition of Two Roads Hospitality.
With the addition of the management company's five established lifestyle brands—Alila, Destination, Joie de Vivre, Thompson and tommie—Hyatt has expanded its brand presence into 23 new markets, with management and license agreements for 74 open and operating hotels across North America and Asia, as well as a pipeline of signed management agreements. As part of the acquisition, Hyatt is establishing a new lifestyle division to combine the operations of Two Roads' and Hyatt's lifestyle brands.
"We will leverage the shared expertise of Hyatt and Two Roads across our powerful combined portfolio of 19 brands to bring best-in-class offerings for guests around the globe," Mark Hoplamazian, Hyatt's president and CEO, said in a statement. "For hotel owners, our platform will deliver opportunities for enhanced operational excellence and financial performance. We are pleased to have completed this exciting transaction and we welcome Two Roads associates to Hyatt."
Two Roads' brands are expected to become part of the World of Hyatt loyalty program in the near future, expanding opportunities for guests to earn and redeem points across more stay options.
Prior to closing the transaction, the base purchase price for the acquisition was revised to $405 million from $480 million, and the aggregate potential additional consideration from Hyatt was revised to $96 million from $120 million. As a result of the revised terms, Hyatt expects the 2019 adjusted EBITDA contribution prior to nonrecurring integration-related costs to be approximately $20 million to $25 million. This compares to a prior estimate of approximately $25 million to $30 million. After including integration costs, the net contribution to 2019 adjusted EBITDA is expected to be flat to $5 million.