Earlier this month, Hyatt Hotels Corp. agreed to purchase Two Roads Hospitality, an international lifestyle-hotel management company with 85 properties in operation across eight countries plus 35 more hotels in development, for $480 million. The transaction includes the 47 properties within the Destination Hotels brand, a notable player in the meetings and incentives market. The hotels in Two Roads' brands—Destination, Alila, Joie de Vivre, Thompson, and tommie—give Hyatt a presence in 23 new destinations.
Interestingly, one of the companies that owned Two Roads, private-equity firm Geolo Capital, is overseen by John Pritzker, son of Hyatt founder Jay Pritzker. In 2010, John Pritzker sold his interest in Hyatt to other family members.
Two Roads' brands mostly occupy the luxury tier, which fits into Hyatt's strategy. Within Destination Hotels, group-oriented properties include La Cantera Resort & Spa in San Antonio; Wild Dunes Resort in Isle of Palms, S.C.; Terranea Resort in Rancho Palos Verdes, Calif.; Scottsdale Resort at McCormick Ranch in Scottsdale; Stowe Mountain Lodge in Stowe, Vt.; Carmel Valley Ranch in Carmel, Cailf.; and Lansdowne Resort in Leesburg, Va., among others. Hyatt CEO Mark Hoplamazian noted to Bloomberg that the luxury-heavy focus of the portfolio plus a presence in new destinations were significant reasons for acquiring Two Roads.
Stephanie Lerdall, global corporate communications for Hyatt, told MeetingsNet that the firm would not comment further on the deal until after it formally closes, likely by year end. But Hyatt did note in a press release that once the deal is closed, it will integrate the former Two Roads brands into the World of Hyatt program, expanding opportunities for individuals and groups to earn and redeem points across more properties and to drive occupancy from loyal guests and clients.
From an amenities perspective, Pritzker says that the importance of technology is rising; this is an area where Destination Hotels is strongly focused. Amazon Echo (Alexa) is one example of technology being integrated into rooms to allow guests to more easily control lighting, heating, and power outlets, while more rooms are getting wireless-charging capabilities as well.