Hyatt Hotels Corporation has confirmed that it is considering a bid to take over Spain’s NH Hotel Group.
The news comes after Thai hospitality firm Minor International – which operates the Minor Hotel Group – purchased a 25.2 per cent stake in NH from Chinese giant HNA Group spread over two transactions.
Minor Group already owned a 9.5 per cent stake in NH and struck the latest deal with the intention of offering an all-cash purchase of the remaining shares.
Any offers by Hyatt would pit the two against each other in a bidding war.
In a statement, Mark Hoplamazian, president and CEO of Hyatt Hotels Corporation, said: “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 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.”