Hyatt, which on Friday said it may launch a cash bid for 100 percent of NH Hotels, said it saw pursuing an offer as extremely challenging. “Based on the information we now have, we believe that the path to a successful tender offer by Hyatt under the terms expressed in our letter has narrowed to a point of being impractical,” Hyatt’s President and Chief Executive Officer Mark Hoplamazian said in the letter released today.
Thailand-based Minor International made an offer in June which valued NH at up to 2.5 billion euros ($2.9 billion). Their CEO had already stated that Hyatt’s offer was way too late and they had no chance at a winning bid. That turned out to be true. You can read the full statement from Hyatt below:
Mark Hoplamazian, President and CEO, Hyatt Hotels Corporation:
“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.”
Business and numbers aside, this would have been a great move for World of Hyatt members. Hyatt’s portfolio would have increased significantly with many more properties in Europe and South America.