Hyatt Public Offering Sign of the Times
One the world top private held hotel companies Hyatt Hotels Corporation is set to go public with an offering that industry analysts have pegged may generate US$1.15 billon for the owners. Hyatt and the Carlson Group (Radisson/Park Plaza/Regent/TGI Fridays) were long term hold out's during the Wall Street boom of the past decade and it appears the family issues amongst the controlling Pritzker family may be more at play than financial motivation.
Looking at a post offering scenario Pritzkers who currently retain 85% of the company with Goldman Sachs and a firm back of a Wal-Mart heir take up the remaining portion. While the Pritzker family disputes are well documented during the past few years, the current offering allows the family to retain control during a controlled release and sale of shares.
Whether Hyatt could be a target by another global chain or a recapitalized group may become a predator on acquiring another chain remains yet to be seen. None the less for now Hyatt going forward will indeed be forced to concentrate on a growth strategy which places a larger emphasis on earning and share value; and be cast rudely into the likes of battling with the Starwood's, IHG and ACCOR'S looking to make profits in a declining market.