Bulletin: Hyatt Hotels Corp. Expands Boutique, Lifestyle Hotel Presence With Two Roads Hospitality Acquisition

NEW YORK (S&P Global Ratings) Oct. 8, 2018--S&P Global Ratings believes Hyatt Hotels Corp.'s plan to acquire a majority of independent hotel manager Two Roads Hospitality's management agreements strengthens the company's portfolio partly because it will move Hyatt's EBITDA mix toward less volatile and capital-intensive fee-based sources of revenue and away from owned-hotel EBITDA. In the second quarter of 2018, Hyatt's owned and leased hotels generated about 50% of total EBITDA, and franchise and management fees generated about 50%. The company has also sold about $1.4 billion worth of hotels this year. The hotel sales and the acquired Two Roads management agreements should move the mix at least 5 percentage points toward fee-based EBITDA upon reaching a stabilization level of

...NEW YORK (S&P Global Ratings) Oct. 8, 2018--S&P Global Ratings believes Hyatt Hotels Corp.'s plan to acquire a majority of independent hotel manager Two Roads Hospitality's management agreements strengthens the company's portfolio partly because it will move Hyatt's EBITDA mix toward less volatile and capital-intensive fee-based sources of revenue and away from owned-hotel EBITDA. In the second quarter of 2018, Hyatt's owned and leased hotels generated about 50% of total EBITDA, and franchise and management fees generated about 50%. The company has also sold about $1.4 billion worth of hotels this year. The hotel sales and the acquired Two Roads management agreements should move the mix at least 5 percentage points toward fee-based EBITDA upon reaching a stabilization level of EBITDA from the Two Roads acquisition, including synergies, and expand Hyatt's EBITDA margin. In addition, the acquisition expands Hyatt's presence in boutique and lifestyle hotels, which we believe is a good fit...

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