Hyatt has confirmed it has submitted a letter of interest regarding “the potential acquisition” of Spanish chain NH Hotel Group.
In a statement Hyatt’s president and CEO Mark Hoplamazian said:
“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 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.”
Any move would pit the group against Thai-based hospitality, restaurant and lifestyle group Minor International, which in June announced it had reached an agreement with Chinese congolmerate HNA Group to purchase a 25.2 per cent stake in NH Hotel Group in a two-tranche transaction valued at €619 million.
The purchase adds to an existing 9.5 per cent shareholding, with the intention of Minor launching an all-cash public tender offer to acquire NH Hotel Group’s remaining shares.
Minor International operates the Minor Hotel Group, which comprises brands including Anantara, Avani and Tivoli.
NH Hotel Group operates aprroximately 380 hotels in around 30 countries, totalling over 50,000 rooms.