Does Hyatt survive? Or acquire?
Mar 12, 2020, 1:30 pm
#1
Original Poster
Join Date: Jan 2008
Posts: 3,570
Does Hyatt survive? Or acquire?
As travel stocks (and everything else) get hammered, Hyatt is down 15+% today (way more than competitors). Given its size, one has to wonder, will it survive this or get acquired (god i hope not), or maybe the opposite. Could it make an acquisition based on declining prices and the likely medium term impact on the industry?
Mar 12, 2020, 1:47 pm
#2
Join Date: Apr 2012
Location: MLB Spring Training park AZ, USA
Programs: Globallist
Posts: 287
As travel stocks (and everything else) get hammered, Hyatt is down 15+% today (way more than competitors). Given its size, one has to wonder, will it survive this or get acquired (god i hope not), or maybe the opposite. Could it make an acquisition based on declining prices and the likely medium term impact on the industry?
pump the brakes......
Mar 12, 2020, 2:12 pm
#4
Original Poster
Join Date: Jan 2008
Posts: 3,570
Well, I meant survive more as in do they get acquired, which has been a persistent rumor for years (but defeated I think solely by the Pritzkers), NOT as in do they go under. I also do wonder if maybe they could use this chance to make a purchase also. However, not for nothing, but a lot of companies easily can make a healthy profit one year and go bust the next. Lot more to it than just what they made last year...this year will most likely see substantial pain for many companies in many industries, especially travel, and a short or medium term cash crunch and possible upcoming debt service, etc could doom a few (which I think we will see). As I said though, I really did not mean is Hyatt going under...I meant independence.
Also, given many international companies suffering and China forcing some of its state owned/partially controlled conglomerates being forced to pare their positions, could previous targets be back on the block? Radisson, Melia, etc?
Also, given many international companies suffering and China forcing some of its state owned/partially controlled conglomerates being forced to pare their positions, could previous targets be back on the block? Radisson, Melia, etc?
Mar 12, 2020, 7:02 pm
#6
FlyerTalk Evangelist
Join Date: Apr 2008
Location: LGA/JFK/EWR
Programs: UA 1K1.75MM, Hyatt Globalist, abandoned Marriott LTT (RIP SPG), Hertz PC
Posts: 21,167
Hopefully they can load up on debt, buy Marriott, spin off all the legacy mediocre MarriottCo brands to pay off said debt, keep the legacy Starwood ones, toss the entire Marriott C-Suite, win back long term SPG loyals with great benefits and CS.
voila! New hotel powerhouse.
is that too much to ask?
voila! New hotel powerhouse.
is that too much to ask?
Mar 12, 2020, 7:05 pm
#7
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,896
It's kind of early and premature to be expecting Hyatt to fail. In three months' time, we're all going to laugh at what's going to be the biggest overreaction in the history of the world.
Mar 12, 2020, 7:07 pm
#8
Join Date: Aug 2007
Posts: 1,161
I hope your right but clearly your a) not a scientist or medical person and b) not reading or understanding the data. This is a very serious crisis and wishing it away or minimizing it doesn’t help anyone.
Mar 12, 2020, 7:18 pm
#9
Join Date: Aug 2007
Posts: 1,161
Hyatt isn’t going to fail, be acquired, or acquire anyone.
Hyatt is really a family business controlled by the Pritzkers of Chicago. Yes it’s publicly traded but my understanding is that the family maintains control through voting rights, special classes of stock, etc. This is similar to how Rupert Murdoch controls his companies while they are also publicly traded.
Bottom line is the Pritzkers will do what is necessary to keep the company afloat. They won’t sell or risk losing control (they wanted to buy Starwood and reportedly walked away when it would have required them to give up control of the Company). As for acquiring others, I really think they are too conservative in this highly uncertain environment to do that. It’s not like they need more brands...
What IS possible is that some Hyatt franchisees (who own and in some cases operate Hyatt-branded properties) COULD go under. THAT could result in many many closed or rebranded Hyatt hotels.... of course the same could happen with Marriott and Hilton which could lead to more Hyatt properties.
Hyatt is really a family business controlled by the Pritzkers of Chicago. Yes it’s publicly traded but my understanding is that the family maintains control through voting rights, special classes of stock, etc. This is similar to how Rupert Murdoch controls his companies while they are also publicly traded.
Bottom line is the Pritzkers will do what is necessary to keep the company afloat. They won’t sell or risk losing control (they wanted to buy Starwood and reportedly walked away when it would have required them to give up control of the Company). As for acquiring others, I really think they are too conservative in this highly uncertain environment to do that. It’s not like they need more brands...
What IS possible is that some Hyatt franchisees (who own and in some cases operate Hyatt-branded properties) COULD go under. THAT could result in many many closed or rebranded Hyatt hotels.... of course the same could happen with Marriott and Hilton which could lead to more Hyatt properties.
Mar 12, 2020, 7:55 pm
#10
Join Date: Apr 2002
Location: Atlanta Metro
Programs: DL , AC, BA, Hhonors Diamond, IH Platinum, Bonvoy Gold, Hyatt Discoverist
Posts: 2,352
Yeah, take a look at some of the stocks of these companies that own and run a bunch of hotels of varying brands. They're verging on penny stock territory.
Mar 12, 2020, 9:29 pm
#11
FlyerTalk Evangelist
Join Date: Sep 2002
Location: Chicagoland, IL, USA
Programs: WN CP, Hilton Diamond
Posts: 14,185
Hyatt ought to try to buy Loews Hotels. I think that would be a good fit. Pretty upscale brand and I don’t think it really fits in with Loews’ other businesses (insurance, oil rigs, pipelines, and packaging manufacture).
Mar 12, 2020, 9:30 pm
#12
Join Date: Nov 2004
Location: Los Angeles, CA; Philadelphia, PA
Programs: OZ Diamond
Posts: 6,134
LAX
Mar 12, 2020, 10:33 pm
#13
FlyerTalk Evangelist
Join Date: Mar 2010
Programs: DL, OZ, AC, AS, AA, BA, Hilton, Hyatt, Marriott, IHG
Posts: 19,896
Why aren't we doing this every year with the flu then?
Mar 12, 2020, 10:47 pm
#14
Join Date: Dec 2017
Location: SFO/YYZ
Programs: AC 25K, AS MVP Gold, BA Bronze, UA Silver, Marriott Titanium, Hilton Diamond, Hyatt Globalist
Posts: 2,464
Mar 12, 2020, 11:53 pm
#15
Join Date: Jan 2012
Location: Osaka
Programs: Hyatt Explorist, Hilton Gold, UA
Posts: 3,158