Things just got real interesting. It makes sense that Hyatt would want to scale up after missing out on its Starwood opportunity.
“Hyatt has a demonstrated track record of making strategic investments to extend the reach of our brands and create value for our stakeholders,” Mark Hoplamazian, Hyatt’s president and chief executive officer, said in an emailed statement Thursday to Bloomberg. “In keeping with our growth strategy, we submitted a letter of intent expressing our interest in pursuing a potential acquisition of NH Hotel Group.”
Any potential offer from Chicago-based Hyatt provides an alternative for NH Hotel shareholders, who are currently weighing a tender offer from Thailand’s Minor International Pcl. That deal is conditional on approval from shareholders at an annual general meeting called for Aug 9. Minor is already NH’s biggest shareholder, and said in a regulatory filing earlier Thursday that it had raised its stake to 35.55 percent. It acquired HNA Group Co.’s stake in June amid far-reaching asset sales by the debt-ridden Chinese conglomerate.
An NH Hotel representative wasn’t available for comment outside of regular business hours.
“We believe that marrying NH Hotel Group’s strong footprint in Europe and select other markets with Hyatt’s global presence would yield a powerful portfolio of brands and network of hotels delivering compelling benefits for guests, owners and shareholders of both companies,” Hoplamazian said in his statement. Hyatt is seeking to “conduct additional due diligence to further inform valuation and determine the optimal approach to a potential offer,” he said.
©2018 Bloomberg L.P. This article was written by Gillian Tan from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to [email protected].
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Photo credit: Hyatt CEO Mark Hoplamazian is pictured at the Andaz Tokyo. Hyatt Hotels Corp. has sent a letter to NH Hotel Group SA expressing interest in taking over the Spanish hotel company. Hyatt Corporation / Hyatt Hotels