Hyatt Backtracks on Potential Bid for Spain’s NH Hotels
Shawn covered Friday the news about Hyatt trying to acquire the Spanish hotel operator NH Hotel Group SA. That would have been a big boost for Hyatt, especially in Europe and South America. But it looks like it will not happen. Soon after Dillip Rajakarier, Minor’s chief operating officer, said in a July 27 interview that Hyatt’s interest in acquiring NH Hotel had come too late to stop its own offer from succeeding. And now Hyatt have tracked back.
Updated Hyatt Statement on NH Hotel Group
Mark Hoplamazian, President and CEO, Hyatt Hotels Corporation, said the following on their latest press release:
“On July 26, 2018, Hyatt delivered a letter to the Board of Directors of NH Hotel Group in which we expressed our interest in pursuing a potential acquisition of NH Hotel Group with a separation of their real estate assets from their hotel management platform. Thereafter, Hyatt submitted a letter to the NH Hotel Group’s Board of Directors, responding to questions the Board asked about our letter of interest.
After reviewing the disclosures that were made by NH Hotel Group’s largest shareholder shortly after the submission of our letter of interest, we believe that the path to a successful tender offer by Hyatt has now narrowed to a point of being impractical. Absent a significant change in facts or circumstances, Hyatt has determined that pursuing a tender offer is not viable at this time.
We have communicated to NH Hotel Group’s Board that we remain willing to engage in a dialogue with them to discuss other potential avenues toward unlocking value for NH Hotel Group’s shareholders. We believe that a higher value could be realized by NH Hotel Group’s shareholders if there were an agreed commitment and path to restructure NH Hotel Group’s assets, while leveraging Hyatt’s considerable brand strength and global presence.”
Hyatt seems to leave the door open for some sort of partnership, but that seems unlikely. Yet another large scale purchase that seems to have slipped through their hands.
What are your thoughts?
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[…] Hyatt Backtracks on Potential Bid for Spain’s NH Hotels by Miles to Memories. Hyatt fans won’t be happy about this one. […]
[…] Hyatt Backtracks on Potential Bid for Spain’s NH Hotels by Miles to Memories. Hyatt fans won’t be happy about this one. […]