Goldman Sachs, private firm to pour $1 billion into Global Hyatt

Global Hyatt Corp. disclosed late Wednesday that a private investment firm and an investing group affiliated with Goldman Sachs Capital Partners have agreed to make a $1 billion equity investment in the Chicago-based hotel operator.

The money received from selling the minority stake to the investors 'will be used primarily to provide liquidity to the Pritzker family interests that currently own global Hyatt,' the closely held company said.

The company also hinted strongly that the buy-in means Hyatt won't be going public anytime soon.

'Consistent with previously announced plans,' said Global Hyatt Chairman Tom Pritzker, 'we are ... restructuring our family's holdings.'

As part of the family's strategic planning, he said, 'we considered opening up our shareholder base to an investor or investors who shared our vision and could facilitate the implementation of the company's strategy.'

The buy-in includes Madrone Capital Partners, an investment firm affiliated with investor Rob Walton and his family.

'As we considered the criteria we would use,' Pritzker said, 'Rob Walton's family interests and Goldman Sachs emerged as possessing the key attributes we sought.'

A representative of Madrone and a representative from the Goldman group will join the Hyatt Global board.

Further details about the transaction weren't disclosed.

The addition of the new investors, with their 'long-term horizons,' said Pritzker, 'will allow us to further our restructuring efforts without affecting Global Hyatt's financial capacity to grow and execute on our business plan.'

With the sale of a stake to the Madrone/Goldman investors, he said, 'we believe we have served the interests of both the company and its shareholders.'

Pritzker appeared to suggest that, despite speculation that the company might be planning to go public, such a move isn't in the cards now that the family has cashed out a portion of its investment in Hyatt.

'While we have previously spoken about making Global Hyatt 'public ready' in terms of its reporting and financial controls, we have no specific plans to access the public markets at this time.'