Hyatt IPO raises $950 million

By Kevin Robinson in News on Nov 6, 2009 4:20PM

Hyatt, the hotel chain owned by Chicago's storied Pritzker clan, raised $950 million in its initial public offering Thursday, as the hotel chain took its shares public. Shares were priced at $25, but closed up 12 percent Thursday, near $28 a share. "We are delighted at the success of our initial public offering and with our new partnership with the NYSE," Hyatt CEO Mark Hoplamazian said of the IPO. "Our focus will continue to be providing authentic hospitality to our guests and driving preference for our brands."

The Pritzker family stands to benefit from the cash raised by the IPO, the result of a $6 billion lawsuit filed by Liesel Pritzker against her father and 11 older cousins. The family has agreed to sell off the family assets and divide the funds among Jay Pritzker's heirs though they initially claimed that Hyatt would remain private.

The positive stock news comes as the hospitality industry has taken a beating in the rough economy. The hotel chain is also facing tough labor negotiations, as Unite Here, the union that represents hotel and hospitality workers throughout the U.S. and Canada prepares for a possible standoff over layoffs and health care.