Main Photo: The new Standard Hotel, London
Date: August 2019
Location: To-date mainly USA, but expanding now in Asia and Europe
Name: Sansiri and Standard International Holdings
No. of Keys: TBA
Seller: Standard International Holdings, originally started, 2000, by Andre Balazs, of Chiltern Firehouse fame, who stepped down as Chairman last year.
Buyer: Sansiri, Thailand’s leading real estate developer, announced its investment to increase its shareholding in Standard International Holdings (SIH), the parent company of The Standard, an American hotel brand, from 37.26% to 59.02%.
Sansiri are mainly a residential developer, started some 35 years ago, with a host of tower-type projects across Thailand, such as The Base Height in Phuket and 98 Wireless in Bangkok.
Optimistic about The Standard’s potential for rapid global growth, the companies have aligned on an ambitious expansion plan to grow The Standard footprint to 25 open hotels in the next five years including four properties in Thailand in Koh Samui, Phuket, Pattaya and Hua Hin, as well as locations in Milan, Paris, Lisbon, Bordeaux, Mexico City, Jakarta, Melbourne and Chicago.
Wanchak Buranasiri, chief financial officer at Sansiri said: “Since Sansiri’s investment in Standard International in November 2017, we have jointly taken part in developing a growth plan that capitalises on the positive global travel and lifestyle trends. The global hotel market is projected to double its growth rate with hotel revenues estimated to grow 7.8% annually over the next five years. The lifestyle and boutique hotel segment, where The Standard is positioned, is the fastest growing segment within the industry.”
Sansiri has approved in principle Sansiri (US) acquisition in associate company, Standard International Holdings, in the proportion of 21.76% with the total amount of US$40.45 million. After the investment transaction, Sansiri (US) shareholding in SIH has increased from 37.26% to 59.02% and SIH is now a direct subsidiary of Sansiri (US) as well as an indirect subsidiary, he added.
In July, the hotel chain celebrated the launch of its first property outside the US, with The Standard, London in the King’s Cross neighbourhood. In Fall of 2019, The Standard is set to open its first resort in Huruvalhi, Maldives.
Amar Lalvani, CEO of Standard International said: “Standard International is now truly international with the launch of our first hotels in Europe and Asia. With the support and investment from Sansiri, we are well positioned to capitalise on the rapidly growing overseas markets and are on pace to have 25 hotels open over the next five years.”
Price: US$40m for 21.76% valuing the whole at around US$200m
Price per Key: TBA
First Seen: Travel Daily Media
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