After Standard International on Monday announced 15 new projects (2,500 keys) for its Standard Hotels and Bunkhouse Group, HOTELS reached out to CEO Amar Lalvani for more details, also wondering why he saved all the deals for one announcement.
Less than 18 months after a US$58 million-dollar capital infusion from Bangkok-based real estate development firm Sansiri PCL in November 2017, The Standard brand has 12 new deals globally, while Bunkhouse had deals for hotels in Austin, Texas, New Orleans and Atlanta. These include the first branded residential projects for both brands.
Here is what Lalvani had to say about those deals and more about the future for Standard International.
HOTELS: Why did you wait to make one big announcement as no doubt these deals were not completed simultaneously?
Amar Lalvani: As you can imagine we have been working hard for the past year and a half securing these projects. There are so many great things happening every day in the world of Standard for our guests that we don’t often step back and talk about the new deals or speak with industry press. The Berlin [hotel investment] conference is always a great moment to check in and tell the development community what we have been up to and where we are headed.
H: Are all these deals all financed?
AL: The deals are all secured, meaning that Standard is the brand that has been chosen or we have secured the project and chosen a development/capital partner for it. In certain instances definitive legal documents are complete; in certain instances they are in progress. But having been around the block we choose owned sites with advanced entitlements and strong developers who have secured or have a proven track record of securing financing. These are real deals and not speculative. We are well into programming, planning and design for all of these projects.
H: Can you describe the makeup of deals (owned versus managed)?
AL: They are predominately straight hotel management agreements. In certain instances, for extremely high barrier entry strategic markets/locations, we have committed capital.
H: What is the timing for the openings?
AL: Over the next five years, but beginning in May with London followed by the Maldives also in 2019.
H: Can you describe the mix of product types?
AL: It’s a mix and that’s one of the differentiating facets of the brand. It’s not prescriptive. It’s driven by content and creativity. A mix of straight new-builds like Paris, Milan Bangkok and Chicago; existing hotel conversions like Phuket and the Maldives; historical change or use conversions like London and Lisbon. This mirrors the successful development track record of our existing properties.
H: Why residential, especially for Bunkhouse, and how will those differentiate from what’s already out there in the lifestyle space?
AL: It’s actually incomparable to the license deals other hotel brands have done. The first Bunkhouse residential offering is at the St Cecilia in Austin, Texas. It’s a beautifully natural extension. That hotel has developed almost a cult following through its residential feel and commitment to privacy and personalization. The idea of living within that environment for those who have been there is a special proposition.
H: Did you use the entire US$58 million, and what was Standard’s investment in these projects?
AL: We have not used all the capital. We are very fortunate to have a long-term committed partner in Sansiri, who believes in growth – but not at the cost of quality and creativity. The vast majority of the resources have gone into building the best resources, team and infrastructure to deliver for our partners and build the best brand and organization in the space.
H: What’s next? Another round of funding? Are there more deals coming?
AL: This is just the beginning.