Hyatt, one of the largest hotels companies in the United States, has agreed to sell its entire business to Hyatt Corporation.
The agreement was announced on Thursday.
Hyatt said it will pay $3.2 billion in cash, $1.8 billion in equity and the purchase price will be announced in early 2017.
The company will retain the rights to the hotel properties it owns, which include its headquarters in Austin, Texas.
It will retain rights to all of the hotels’ other assets, including the Hyatt Place Austin, the Hypertower Hotel and other properties.
Hyatts shares rose 4% in after-hours trading on Friday.
The transaction will give Hyatt shareholders an investment in a business that has made more than $3 billion in annual revenue since 2008.
It is not clear what Hyatt will do with the properties.
“Hyatt Hotel Group remains committed to the success of the Hyatts Austin hotel brand and will continue to invest in the Austin market, where we are known for our award-winning hospitality,” said Hyatt CEO Steve Smith in a statement.
Hyatt said the purchase is expected to close by the end of 2017.
In its press release announcing the deal, the company said it plans to retain its existing brands and will focus on “growing the value of the Austin brand, our core hotels and our new Hyatt Austin hotel.”
The company said the sale is expected “to add value to shareholders by strengthening the long-term sustainability of the company.”
Hyatts Austin, Hyatts Houston and Hyatt Orlando are all owned by the same family of companies.
The deal does not involve Hyatt’s flagship properties.
Hyatt will remain the company’s majority owner, with other minority owners, including hotels company Hilton Worldwide Inc. and Marriott International, as well as the company and its subsidiaries, including its Atlanta and Austin locations.
Investors in the deal include General Electric Co., Blackstone Group LP, BlackRock Inc., Berkshire Hathaway Inc., Bank of America Corp., Barclays PLC, Citigroup Inc., Disney Co., GE Capital Partners LP, Hewlett Packard Co., IBM Corp., Intel Corp., Luxottica Inc., Microsoft Corp., Visa Inc., Walgreens Boots Alliance Inc., Xerox PARC, and U.S. Bank.
A deal to sell a large majority stake in Hyatt would be the first in the hotel industry to go through such a process, as is the case for some major companies such as Marriott, Hilton, and the Residence Group.