Hyatt Issues Statement on Interest in Purchasing NH Hotels

Earlier today Hyatt announced plans to purchase NH Hotel Group.  NH is one the Europe's largest hotel brands with over 380 properties in 29 countries around the world.  They recently had failed bid from the Thai company Minor International who was looking to expand in Europe.  Hyatt obviously carries much more weight into the equation and NH would be a great fit for it looking to expand.

The NH Fiera would be a new option in Milan other than the Park Hyatt

From an Award and Hotel Perspective

Hyatt Hotels: Around 770 Total Hotels

NH Hotels: Around 380 Total Hotels

With the recent merger of Marriott and Starwood it makes sense that other hotel groups would look to expand via acquisitions.   The purchase of NH Hotels by Hyatt would strengthen their rather weak portfolio in Europe.  Specifically Hyatt only has 9 hotels in all of Europe that are between Category 1 and 3 and 25 hotels in all of Europe.  Acquiring NH would increase this number over 100 significantly.

For award properties this gives much greater access for those holding Chase Ultimate Rewards points as they are a direct 1 to 1 transfer partner.  Hyatt has also has one of the more generous award charts with 67% of their hotels falling in the point half of their chart.  NH Hotel's are very good middle-tier luxury hotels so the trend would most likely continue as they don't have anything at the level of the Andaz, Grand Hyatt, and Park Hyatt brands.


Hyatt's Statement on Their Interest

President's Mark Hoplamazian's direct quote:

“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.”

The full statement from Hyatt can be viewed at https://newsroom.hyatt.com/nhhotelsstatement