Hyatt Hotels Corporation, the Hotel empire controlled by the Pritzker family, announced last night it has raised $950 million from its initial public offering on the New York Stock Exchange.
It is the second-largest IPO this year, topped only by the 7 October listing of a branch of another family business, Banco Santander. In a statement released yesterday the non-family CEO Mark Hoplamazian called the first day of trading a "success".
The Chicago-based Pritzker family first announced its intention to take Hyatt Hotels public in August this year. (Click here to read our coverage of the story) The move was not unexpected, however the family hit the headlines in October over amendments made to the IPO filing that specifically mentioned family disagreements as a risk factor for investors considering buying into Hyatt. (Click here to read our coverage of the story)
The family also announced they would remain in control of 80% of the Class B voting shares, ceding no control to outside investors. The amendments sparked speculation over how successful the IPO would be for the family, but yesterday's sale suggests the family control of the business did not deter investors with Hyatt share price rising by 12%.
The IPO is part of an ongoing asset sale to split the family wealth between 11 third-generation Pritzker cousins. This process has been spread over a decade between 2001 and 2011 and has seen some notable family disputes along the way. (Click here to read our ongoing coverage of the Pritzker family)
Hyatt had 2008 revenues of $3.8 billion and has two family members serving on the board, third-generation cousins Penny and Tom Pritzker. The company was founded in 1957 by brothers Jay and Robert Pritzker and their father AN Pritzker.
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