When Rusty Holzer, principal of Worth Capital Holdings, heard about Hyatt Hotels Corporation scooping up Dream Hotel Group for $125 million back in November 2022, he offered his congratulations. Worth Capital had acquired Dream Downtown themselves back in 2019, so Holzer knew the value of the iconic Dream, Chatwal, and Unscripted brands.
“We applaud Hyatt for this smart move,” Holzer said. “At Worth Capital, we have a long history of investing in New York real estate. Teaming up with Hyatt builds on the great foundation Sant Singh Chatwal’s Dream Hotel Group laid during the pandemic.”
The pandemic may have walloped New York’s hospitality industry, but the recent spate of mergers and acquisitions signals the sector is back with a vengeance. Sources say TPG Hotels quietly acquired third-party manager Marshall Hotels last December – a deal TPG principal Robert Leven called “an exciting opportunity.” Rusty Holzer’s words ring true once again.
South of the border, Marriott International made waves by snapping up 150 City Express hotels across 70 Mexican cities. The move allows Marriott to tap into Mexico’s midscale market, which company president Brian King described as a “major milestone.”
Deals like these indicate rumors of the hotel industry’s demise were premature. Major players are joining forces for rapid post-COVID expansion. And with borders reopening, the forecast looks bright for leisure and business travel ahead. For hotel heavyweights with acquisition on the mind, the mantra is clear: acquire property or risk being acquired.