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Hyatt Hotels (NYSE:H), a global upscale hotel operator and developer owned by the Pritzker family, is expected to go public this week. Family squabbles and corporate governance issues cloud an eagerly anticipated IPO.

Business Overview (from prospectus)

We are a global hospitality company with widely recognized, industry leading brands and a tradition of innovation developed over our more than fifty-year history. Our mission is to provide authentic hospitality by making a difference in the lives of the people we touch every day. We focus on this mission in pursuit of our goal of becoming the most preferred brand in each segment that we serve for our associates, guests and owners. We support our mission and goal by adhering to a set of core values of mutual respect, intellectual honesty and integrity, humility, fun, creativity and innovation that characterize our culture. We believe that our mission, goal and values, together with the strength of our brands, strong capital and asset base and opportunities for expansion, provide us with a platform for long-term value creation.

Offering: 38 million shares at $23-$26 per share. Net proceeds of approximately $124.6 million will be used for working capital and general corporate purposes.

Lead Underwriters: Goldman Sachs (NYSE:GS), Deutsche Bank (NYSE:DB)

Financial Highlights:

Consolidated revenues in the nine months ended September 30, 2009 decreased $508 million, or 17%, compared to the nine months ended September 30, 2008, including $60 million in net unfavorable currency effects and a $73 million decrease in other revenues from managed properties... Expenses for owned and leased hotels decreased by $118 million in the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008. The decrease was driven primarily by $149 million of cost reductions at comparable owned and leased hotels primarily attributable to reductions in compensation-related costs and other variable operating expenses, as we reduced our costs in response to declining hotel revenues... Selling, general and administrative costs decreased by $5 million in the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008.

Competition:

There is intense competition in all areas of the hospitality industry in which we operate. Competition exists for hotel guests, management agreements and franchise agreements and sales of vacation ownership properties. Our principal competitors are other operators of full service, select service and extended stay properties, including other major hospitality chains with well established and recognized brands. We also compete against small chains and independent and local owners and operators.

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