Hyatt Hotels Corp. agreed to acquire lifestyle hotel and resort operator Two Roads Hospitality from private equity firm Geolo Capital for a $480 million base price, with the potential to invest an additional sum of up to $120 million, subject to certain conditions.

The deal will expand Hyatt's brand presence into 23 new markets, while also boosting its global development pipeline. Two Roads has lifestyle brands and management agreements for the majority of its 85 properties that are located across eight countries. Its brands include Joie de Vivre Hotels, Thompson Hotels, Destination Hotels, tommie and Alila Hotels & Resorts.

Among Geolo's under-development pipeline is the Thompson Hotel in Washington, D.C., scheduled to open in 2020; a more than $300 million mixed-use project in Austin, Texas, that will feature Thompson and tommie hotels alongside a multifamily property; in addition to identified multifamily and hospitality opportunities abroad and in major U.S. markets.

Geolo will cease to be Two Roads' principal shareholder but will remain the largest owner of Hyatt-managed hotels, it said in a release.

Following completion of the transaction, expected later in 2018, Hyatt plans to create a new division to combine the operations of Two Roads' lifestyle brands with its own.

Hyatt estimates that the base and total contingent price will reflect an EBITDA multiple of roughly 12-13x stabilized 2021 earnings.

Goldman Sachs & Co. LLC acted as financial adviser to Hyatt for the acquisition, while Latham & Watkins LLP was its legal counsel. Moelis & Co. LLC was financial adviser to Two Roads Hospitality, and Skadden Arps Slate Meagher & Flom LLP served as its legal counsel.

In a separate release, Hyatt said CFO Patrick Grismer will be stepping down, effective Nov. 2, to assume the same post at Starbucks Corp. Hyatt's senior vice president of finance for the Americas, Joan Bottarini, will replace Grismer.