Sansiri increases stake in Standard International Holdings

Eloise Hanson By Eloise Hanson
23 August 2019 | Updated 23 August 2019

US: Thai property developer Sansiri has picked up a majority stake in Standard International Holdings (SIH) - the parent company of The Standard.

The US $40.5 million deal will see Sansiri's shareholding in SIH grow by 21.76 per cent to 59.02 percent. SIH will become a direct and indirect subsidiary of Sansiri.

Chief financial officer of Sansiri, Wanchak Buranasiri, said: "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."

According to Sansiri, both companies have planned to internationally expand The Standard within the next five years. This includes four hotels in Thailand, as well as other locations such as Milan, Paris, Lisbon, Bourdeaux, Mexico City, Jakarta, Melbourne, and Chicago.

Amar Lalvani, CEO at SIH, explained that The Standard's expansion coincides with shifting consumer preferences. "Approximately 60 per cent of global millennials are in Asia. With those trends in mind, we have strategically situatied ourselves to have over 90 per cent of our global pipeline outside of the US with approximately two-thirds of that in Asia."

Following a revamp of an existing hotel in the Maldives, The Standard is set to open its first resort in Huruvalhi later this year.

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