Hyatt Hotels Corporation announced it has entered into an agreement to acquire Dream Hotel Group for up to $300 million. This asset-light acquisition will include a portfolio of 12 managed or franchised lifestyle hotels, with another 24 signed long-term management agreements for hotels expected to open in the future. Upon closing, the acquisition will add over 1,700 overs to Hyatt’s portfolio.
Upon closing, Hyatt will pay a base purchase price of $125 million, with up to an additional $175 million over the next six years as properties come into the pipeline and open. Stabilized management fees associated with the base purchase price of $125 million are anticipated to be approximately $12 million and, to the extent the contingent purchase price of $175 million is paid, additional stabilized management fees are anticipated to be up to approximately $27 million.
Dream Hotel Group plans to open Dream Las Vegas in 2024. Developing by Shopoff Realty Investments, the 531-key hotel is currently under construction on the Las Vegas Strip, less than one mile away from the Allegiant Stadium.
Located at 5051 S. Las Vegas Blvd on a 5.25-acre parcel that was acquired in a joint venture with Contour Real Estate in February 2020. Dream Hotel Group is the hotel manager, DLR is the Architect of Record, Rockwell Group and AvroKO Design are Interior Designers, McCarthy Building Companies is the general contractor.