Hyatt has shown interest to take over Spanish NH Hotel group that is currently evaluating an offer from Minor International (Thai hotelier).
NH Hotels currently has 379 hotels open in 30 countries mainly in Europe and Latin America where Hyatt is weak.
Here’s the map where NH has hotels:
Here’s statement that Hyatt has released:
STATEMENT ON POTENTIAL OFFER FOR NH HOTEL GROUP
Mark Hoplamazian, President and CEO, Hyatt Hotels Corporation:
“Hyatt has a demonstrated track record of making strategic investments to extend the reach of our brands and create value for our stakeholders. In keeping with our growth strategy, we submitted a letter of intent expressing our interest in pursuing a potential acquisition of NH Hotel Group.
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.
Consistent with our strategy of pivoting to an asset-lighter business model, we see significant value creation for shareholders through a separation of NH Hotel Group’s real-estate assets from its hotel management platform. As a next step, we are seeking to conduct additional due diligence to further inform valuation and determine the optimal approach to a potential offer.”
These NH Hotels are usually bit lower quality than what Hyatt hotels usually are. More like AC hotels that Marriott has (another Spanish brand).
Minor recently purchased HNA’s share of NH Hotels (perhaps Hyatt should have acted faster) and currently owns roughly 36% of the outstanding shared per Bloomberg.
This certainly would help Hyatt expanding its footprint that is the major issue for anyone trying to stay with the chain. They just don’t have enough properties worldwide.