Sansiri PLC, 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 known for its taste-making clientele, pioneering design, and unrelenting un-standard-ness, from 37.26% to 59.02%.
Optimistic about The Standard’s potential for rapid global growth, the companies have aligned on an ambitious expansion plans to grow The Standard footprint to 25 open hotels in the next 5 years including 4 in Thailand: Koh Samui, Phuket, Pattaya and Hua Hin, as well as locations in Milan, Paris, Lisbon, Bordeaux, Mexico City, Jakarta, Melbourne and Chicago.
Mr. Wanchak Buranasiri, Chief Financial Officer at Sansiri PLC, said, “Since Sansiri’s investment in Standard International in November 2017, we have jointly taken part in developing a growth plan that capitalizes 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. As such, Sansiri is confident in, and has approved in principle Sansiri (US), Inc’s 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), Inc.’s shareholding in SIH has increased from 37.26% to 59.02% and SIH is now a direct subsidiary of Sansiri (US), Inc. as well as an indirect subsidiary.”
In less than 2 years after Sansiri acquired shares in its business, Standard International has announced its global expansion plans that will see 25 Standard hotels open across the world in the next 5 years. In July, The Standard celebrated the launch of its first property outside the United States, with The Standard, London in the King’s Cross neighborhood. In Fall of 2019, The Standard is set to open its first resort in Huruvalhi, Maldives (the company has already taken over the operations of the existing hotel which will be renovated and rebranded).
Mr. Amar Lalvani, CEO of Standard International, said, “We are proud that Standard International is now truly international with the launch of our first hotels in Europe and Asia. With the support and investment from Sansiri PLC, we are well positioned to capitalize on the rapidly growing overseas markets and are on pace to have 25 hotels open over the next five years. The Standard brand is perfectly positioned as consumer preferences shift globally toward spending disposable income on experiences versus goods. Approximately 60% of global millennials are in Asia. With those trends in mind, we have strategically situated ourselves to have over 90% of our global pipeline outside of the U.S. with approximately two-thirds of that in Asia.”
The Standard is much more than just a hotel company. It creates authentic experiences in design, art, music, fashion, food and nightlife, unique propositions that differentiate it from the other hotel brands. The Standard blends its cultural DNA with the local community’s culture and lifestyle in each property it opens.
In recent years, the boutique industry has seen significant consolidation with the large companies acquiring lifestyle brands at a rapid clip. Within that landscape, The Standard remains the premier independent lifestyle brand.
“Most boutique hotel brands get stuck, no matter how good their product is, given their inability to build the necessary global infrastructure to scale. Standard International has successfully put the pieces in place since the investment from Sansiri and now sits at the ideal inflection point from which to grow. We have a celebrated and proven brand, strong investor base, global infrastructure, and a robust secured pipeline,” Lalvani added.
Wherever it locates, The Standard transforms local neighborhoods, creates jobs and grows micro-economies by becoming a cultural and social anchor of the communities. From the Sunset Strip to the Meatpacking District and now to Kings Cross and beyond.