Hyatt Hotels Corp. the American multinational hospitality company on Monday announced its interest to buy Two Roads Hospitality for a base price of $480 million.
In India, Alila Diwa Goa and Alila Fort Bishangarh are the two properties that belong to Two Roads Hospitality.
Through this deal, Hyatt will add 85 properties to its existing portfolio of 750 hotels and will be expanding its footprint in 23 new markets.
“Two Roads’ passionate team members, strong brands, global footprint, and robust development pipeline will expand our lifestyle offerings and grow Hyatt’s brand presence in more places where our guests and World of Hyatt members want to travel. Importantly, combining Two Roads’ meaningful brand presence and development plans in Asia with Hyatt’s already strong position in this region will allow us to accelerate expansion in this critically important and fast-growing part of the world,” said Mark Hoplamazian, president and chief executive officer, Hyatt Hotels Corporation.
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.
After the deal closes, the firm expects to combine Two Roads’ and its own lifestyle brands into a dedicated lifestyle division.
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