What’s Going on with Hyatt Hotels Corporation?
Yesterday, Sept. 22, Hyatt Hotels Corporation (H) announced the pricing of its public offering of 7,000,000 shares of the company’s Class A common stock. Hyatt intends to sell its Class A common stock at a public offering price of $74.50 per share, with proceeds going toward the pending purchase of Apple Leisure Group. Hyatt stock, as of 09:04 am EDT (pre-market) this morning, was trading at $75.75 a share, which is a 0.44% uptick in price.
What Does This Mean for Hyatt (H)?
Hyatt estimates that its sale of 7,000,000 shares of Class A common for $74.50 per share will yield net proceeds, “after deducting the underwriting discount and estimated expenses of the offering,” of around $500,140,000. If the underwriters exercise their 30-day option to purchase additional shares in full (1,050,000 shares), the net proceeds bump up to roughly $575,236,000.
Hyatt Hotels Corporation plans to apply the proceeds from the offering toward funding a portion of the purchase price for its pending acquisition of Apple Leisure Group, clocking in at a $2.7 billion purchase price. If the Apple Leisure Group acquisition does not go through, Hyatt plans to use the proceeds from the offering for general corporate purposes.
H has a Short-Term Technical Rank of 80. Find out what this means to you and get the rest of the rankings on H!
Hyatt is an operator of 982 owned (7% of total rooms) and managed and franchise (93%) properties across 16 upscale luxury brands, which includes two vacation brands (Hyatt Ziva and Hyatt Zilara), the recently launched full-service lifestyle brand Hyatt Centric, the soft lifestyle brand Unbound, and the wellness brand Miraval. Hyatt acquired Two Roads in November 2018. The regional breakdown as a percentage of total rooms is 67% Americas, 20% Asia-Pacific, and 13% rest of world.