Hyatt Hotels Corp. has withdrawn its interest in acquiring Madrid-based NH Hotel Group after reviewing disclosures, according to a company statement.
On July 26, Hyatt had issued a statement expressing interest in acquiring NH with a separation of its real estate assets. On Monday, days after rival suitor Bangkok-based Minor Intl. (MINT) disclosed it is on track to control close to 44% of NH, Hyatt announced 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,” Mark Hoplamazian, president and ceo of Hyatt, said in the statement.
MINT had set off on an acquisition tear of NH starting in May when it acquired an 8.6% stake from London-based hedge fund Oceanwood Capital. In June, on the heels of an earlier 9.5% acquisition, MINT announced it would acquire a 25.2% equity stake in NH valued at $727.74 million. That deal, with 16.8% closed in June and 8.4% expected to be completed in September, paved the way for Minor to initiate a full takeover of the Spanish hotel group, whose hotels are located mostly throughout Europe and Latin America.
However, Hyatt hasn’t completely closed the door on NH, according to the statement. The company is willing to engage in further dialogue with NH to discuss other avenues that can unlock value.
“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,” Hoplamazian says.
Hyatt has upped its hand in the acquisition space of late. Most recently, the Chicago-based hotel group acquired resort and spa company Miraval Group for $215 million in January 2017.