Hyatt Hotels, the hospitality empire controlled by Chicago’s Pritzker family, raised $950m in its initial public offering and reaped surprising benefits after going public in the middle of the worst hospitality environment for more than a decade. The company saw its shares rise almost 12% by the close of trading.
Hyatt priced 38 million shares at a price of $25 each and was looking to raise the $950 million. But its shares jumped $2.97 to $27.98. Hyatt posted revenue of just under $4 billion last year. That puts it behind both Starwood and Marriott but ahead of Intercontinental Hotels Group.
“We are delighted at the success of our initial public offering and with our new partnership with the NYSE,” said Mark Hoplamazian, Hyatt’s chief executive, in announcing the IPO. “Our focus will continue to be providing authentic hospitality to our guests and driving preference for our brands.”
While IPO activity has picked up in the past few months, two companies have postponed their debuts this week on concerns over economic recovery and investor appetite.
There were concerns about the Pritzker family who control the 415-hotel chain and who have been locked in quarrels for more than a decade. In a statement to the Securities and Exchange Commission last month, the company warned disputes between family members could result in “significant distractions to our management, disrupt our business and have a negative effect on the trading price of our Class A common stock.”
However, investor concerns were clearly appeased when Hyatt’s financial statements and solid balance sheet were revealed with $1.3bn held in cash.