What did The Standardx's acquisition of Bahia Principe include?

According to The Standardx's 2025 Franchise Disclosure Document, the acquisition of Bahia Principe involved several key components. It included management and hotel services agreements for operating hotels, as well as the rights to the Bahia Principe trade name. This means The Standardx gained control over the operational aspects of existing Bahia Principe hotels and the branding associated with them.

Furthermore, the acquisition contemplated the future management of undeveloped Bahia Principe Hotels & Resorts-branded properties. This indicates that The Standardx planned to expand the Bahia Principe brand by managing new hotel developments. The FDD states that following the acquisition, fee revenues and operating expenses of Bahia Principe were recognized on The Standardx's condensed consolidated statements of income, reflecting the integration of Bahia Principe's financial performance into The Standardx's overall financial reporting.

In 2024, The Standardx completed the Bahia Principe Transaction for €419 million of base consideration, including €60 million of deferred consideration payable at future dates. The consideration was subject to customary adjustments related to working capital, cash, and indebtedness, and The Standardx may pay additional variable contingent consideration through 2034 primarily related to the achievement of certain milestones for the development of additional hotels to be managed by the joint venture. The contingent consideration is payable at each hotel opening and is based on a multiple of stabilized base and incentive management fee revenues, and therefore, The Standardx is unable to reasonably estimate their maximum potential future consideration.