Thai property developer Sansiri has picked up a majority stake in Standard International (SIH), the parent company of The Standard, as it seeks greater control in the rapid global expansion of the American boutique hotel brand.
The additional 21.76 per cent stake will be purchased through a US$40.5 million deal, which will see Sansiri’s shareholding in SIH growing from 37.26 per cent to 59.02 per cent, and SIH becoming a direct subsidiary of Sansiri as well as an indirect subsidiary, Sansiri’s CFO Wanchak Buranasiri announced in a statement.
Wanchak added: “Since Sansiri’s investment in SIH 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 per cent 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.”
SIH CEO Amar Lalvani said that The Standard’s expansion coincides with shifting consumer preferences globally towards spending disposable income on experiences over goods. “Approximately 60 per cent of global millennials are in Asia. With those trends in mind, we have strategically situated ourselves to have over 90 per cent of our global pipeline outside of the US with approximately two-thirds of that in Asia,” he said.
According to Sansiri, both companies have aligned on an ambitious plan to grow The Standard footprint to 25 hotels across the world in the next five years, including four in Thailand, namely, Koh Samui, Phuket, Pattaya and Hua Hin. Other locations in the expansion plan include Milan, Paris, Lisbon, Bordeaux, Mexico City, Jakarta, Melbourne and Chicago.
In July, The Standard launched its first property outside the US with The Standard, London in the King’s Cross neighbourhood. Later this year, The Standard is set to open its first resort in Huruvalhi, the Maldives, following a revamp and rebrand of an existing hotel the company has already taken over.