Bulletin: Hyatt Hotels Corp.'s Miraval Acquisition Is Leverage Neutral; Ratings Not Affected

NEW YORK (S&P Global Ratings) Jan. 18, 2017--S&P Global Ratings said today that the 'BBB' corporate credit and senior unsecured ratings on Hyatt Hotel Corp. are not affected by the company's announcement that it has acquired Miraval Group for a total planned investment of approximately $375 million over the next two to three years. Hyatt plans to spend $215 million this year to acquire the Miraval brand and its Tucson, Ariz., and Austin, Texas, resorts, and another $160 million over the next two to three years to fund expansion of the Tucson resort, redevelop the Austin resort, and to pursue the acquisition and redevelopment of Cranwell Spa&Golf Resort in Lenox, Mass. We believe Hyatt's active capital recycling program

...NEW YORK (S&P Global Ratings) Jan. 18, 2017--S&P Global Ratings said today that the '###' corporate credit and senior unsecured ratings on Hyatt Hotel Corp. are not affected by the company's announcement that it has acquired Miraval Group for a total planned investment of approximately $375 million over the next two to three years. Hyatt plans to spend $215 million this year to acquire the Miraval brand and its Tucson, Ariz., and Austin, Texas, resorts, and another $160 million over the next two to three years to fund expansion of the Tucson resort, redevelop the Austin resort, and to pursue the acquisition and redevelopment of Cranwell Spa & Golf Resort in Lenox, Mass. We believe Hyatt's active capital recycling program will periodically involve aggressive acquisition and redevelopment spending. It is also largely self-funding through asset sale proceeds, even though the timing of spending and the receipt of asset sale proceeds can vary. For example, a substantial portion of spending related...

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