Update: Hyatt Not Pursuing NH Hotel Group

CHICAGO—After previously expressing interest in Spain-based NH Hotel Group, Hyatt Hotels Corp. has decided not to make a bid for the company.

Mark Hoplamazian, Hyatt’s president/CEO, said, “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 its real estate assets from its 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.”

He continued, “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.”

Hoplamazian said that Hyatt has not ruled out a relationship if the group’s assets were restructured. “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.”

The Spain-based company is currently weighing a tender offer from Thailand-based Minor International.