Hyatt announces the exercise of the syndicate banks' option to purchase additional common stock

CHICAGO–(BUSINESS WIRE) – Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H), a leading global hospitality company, today announced that in connection with its previously announced signed, registered public offer of 7,000,000 common shares of the class A shares, the syndicate banks have fully exercised their option to purchase a further 1,050,000 shares from the company. Exercising this option will increase the scope of the offering to a total of 8,050,000 shares at a public offering price of USD 74.50 per share. The Company estimates that the net proceeds of the Offering, after deducting the subscription discount and the estimated cost of the Offering, will be approximately $ 575,236,000. The shares are expected to be delivered on or about September 27, 2021, subject to customary closing conditions.

The Company intends to use the net proceeds from the Offering to fund a portion of the purchase price for the pending acquisition of Apple Leisure Group (the “Apple Leisure Group Acquisition”). Hyatt previously announced that if the acquisition of Apple Leisure Group does not close, the company intends to use the proceeds of the offer for general corporate purposes, including debt repayment or payment of fees and expenses in connection with the offer. The offer is not contingent on the completion of the acquisition of Apple Leisure Group and the completion of the acquisition of Apple Leisure Group is not contingent on the completion of the offer.

JP Morgan is acting as the agent for the syndicate banks and JP Morgan, BofA Securities and Goldman Sachs & Co. LLC are acting as joint lead book-running managers for the offering.

The offering is made pursuant to a Shelf Registration Statement on Form S-3, including a base prospectus, filed by the Company with the Securities and Exchange Commission (the “SEC”), automatically effective upon filing on November 6th. 2020. A preliminary supplement and accompanying prospectus and the definitive supplement and accompanying prospectus relating to the securities being offered have been filed with the SEC and will be available on the SEC’s website at Copies of the final supplement and the accompanying prospectus are also available from: JP Morgan Securities LLC Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Tel: 1-866-803-9204; BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte NC 28255-0001, Attention: Prospectus Department, email: [email protected]; and Goldman Sachs & Co. LLC Attention: Prospectus Department, 200 West Street, New York, New York 10282, Phone: 1-866-471-2526, Fax: 212-902-9316, Email: Prospect-ny @ ny

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will any sale of these securities be made in any state or jurisdiction where such offer, solicitation or sale prior to registration would be or be unlawful Qualification under the securities laws of such state or jurisdiction.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hotel company with 20 leading brands. As of June 30, 2021, the company’s portfolio comprised more than 1,000 hotel and all-inclusive hotels in 68 countries on six continents. The company’s purpose of taking care of people so they can do their best shapes its business decisions and growth strategy, and aims to attract and retain top employees, build relationships with guests, and create value for shareholders. The company’s subsidiaries operate, manage, franchise, own, lease, develop, license or provide services to hotels, resorts, branded residences and vacation properties, including the Park Hyatt®, Miraval®, Grand Hyatt®, Alila®, Andaz®, The Unbound Collection by Hyatt®, Destination by Hyatt ™, Hyatt Regency®, Hyatt®, Hyatt Ziva ™, Hyatt Zilara ™, Thompson Hotels®, Hyatt Centric®, Caption by Hyatt, JdV by Hyatt ™, Hyatt House®, Hyatt Place®, tommie ™, UrCove and Hyatt Residence Club® and operates the World of Hyatt® loyalty program, which offers its valued members special benefits and exclusive experiences.


Forward-looking statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements contain statements about the offer and the intended use of the proceeds from the offer by the company, its proposed acquisition Apple Leisure Group by the company, anticipated sources of funding for the proposed acquisition of Apple Leisure Group, the company’s plans, strategies, prospects, financial results, projections, funding proposals, prospects or future events, and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements could differ materially from those expressed or implied in these forward-looking statements. In some instances, you may notice forward-looking statements by using words such as “may,” “may,” “expect,” “intend,” “plan,” “aim,” “anticipate,” “believe,” “estimate”, ” predict, “” potentially, “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions or the negation of these terms or similar expressions. Such forward-looking statements are necessarily based on estimates and assumptions that we and our management believe are reasonable, but are inherently uncertain. Factors that could cause actual results to differ materially from current expectations include, but are not limited to, risks associated with the possibility of completing the proposed acquisition of Apple Leisure Group and the timing of the closing of the proposed transaction (including the Failure to meet closing conditions or obtain required approvals); the company’s ability to successfully integrate the employees and operations of Apple Leisure Group into the business; the ability to rapidly or to the extent anticipated realizing the anticipated benefits of the proposed acquisition of Apple Leisure Group; Risks associated with being able to obtain proposed financing on favorable terms or at all; Risks Affecting the Luxury, Resort and All Inclusive Accommodation segments; the duration of the COVID-19 pandemic and the pace of recovery from the pandemic, any subsequent resurgence or COVID-19 variants; the short and longer term effects of the COVID-19 pandemic, including demand for travel, temporary and group deals, and consumer confidence; the impact of the COVID-19 pandemic, any additional resurgence or COVID-19 variants and the impact of actions governments, businesses and individuals are taking in response to the global and regional economies, travel restrictions or bans and economic activity, including the duration and extent of its impact on unemployment rates and cyclical consumer spending; the widespread use and effectiveness of COVID-19 vaccines and the wide acceptance of such vaccines by the general population; the ability of third party owners, franchisees, or hospitality venture partners to successfully manage the effects of the COVID-19 pandemic, additional resurgence, or COVID-19 variants; general economic uncertainty in major global markets and deterioration in world economic conditions or low economic growth; the rate and pace of economic recovery after economic downturns; Amount of expenses in the business, leisure and all-inclusive segments as well as consumer confidence; Decrease in occupancy and average daily rate; limited visibility in relation to future bookings; Loss of key personnel; national and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; Hostility or fear of hostility, including future terrorist attacks, affecting travel; travel-related accidents; Natural or man-made disasters such as earthquakes, tsunamis, tornadoes, hurricanes, floods, forest fires, oil spills, nuclear incidents and global outbreaks of pandemics or contagious diseases such as the COVID-19 pandemic or fear of such outbreaks; our ability to successfully generate certain operating profits in hotels that have performance tests or warranties in favor of our third party owners; the effects of hotel renovations and refurbishments; Risks associated with our capital allocation plans, share buyback programs and dividend payments, including a reduction, cancellation or suspension of buyback activities or dividend payments; the seasonal and cyclical nature of the real estate and hospitality industry; Changes in distribution agreements, for example through internet travel agents; Changes in the tastes and preferences of our customers; Relations with colleagues and trade unions and changes in labor laws; the financial condition and our relationships with third party landowners, franchisees and hospitality venture partners; the potential inability of third party owners, franchisees, or development partners to access capital necessary to finance ongoing business operations or to execute our growth plans; Risks in connection with possible acquisitions and disposals as well as the introduction of new brand concepts; our ability to successfully implement our strategy to expand our management and franchising business while reducing our real estate portfolio within the targeted timeframe and to the expected values; Depreciation of our real estate assets; unforeseen terminations of our management or franchise agreements; Changes in federal, state, local or foreign tax law; Increases in interest rates and operating costs; Exchange rate fluctuations or currency restructuring; lack of acceptance of new brands or innovations; general volatility in capital markets and our ability to access such markets; Changes in the competitive landscape in our industry, including as a result of the COVID-19 pandemic, industry consolidation and the markets in which we operate; our ability to successfully grow the World of Hyatt loyalty program; Cyber ​​incidents and information technology failures; Results of legal or administrative proceedings; and violations of regulations or laws relating to our franchise business; and other risks discussed in the company’s filings with the SEC, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which are available with the SEC. We caution you not to place undue reliance on forward-looking statements that appear only as of the date of this press release. We assume no obligation or obligation to publicly update these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors that affect forward-looking statements, unless required by applicable regulations Law. If we update one or more forward-looking statements, it should not be inferred that we are additionally updating these or any other forward-looking statements.