Hyatt Hotels and Restaurants, Inc. (HYH) announced it has raised another $25 million in new funding from investors to expand its food service and hospitality business and accelerate growth.
The company’s stock has been up over 20% since its announcement on July 24, but the stock has struggled in recent weeks, as investors worry that the company has failed to deliver on its growth targets, and analysts have expressed doubts about the company as a whole.
The company has been hit with an avalanche of negative press for its food services performance and poor hotel occupancy numbers.
On July 26, the company announced that it had raised another round of $20 million to fund its food business.
The money will support new capital expenditures, and Hyatt will spend another $2.5 million on the food business, the group said in a statement.
The new round of financing comes on the heels of a $7 million round of funding in April, a $15 million round in March and a $30 million round earlier this year.
Investors include China Capital Group, Goldman Sachs, and Union Square Ventures.
Hyatt’s board of directors approved the new funding at its July 25 board meeting, which was held in a hotel ballroom in New York City.
The round was led by Hyatt’s former chairman, Richard L. Hart, and included Goldman Sachs and other investors.
Hypert Hotels & Restaurants was founded in 2003 and has more than 1,100 properties around the world.
The group has more locations in Canada and the United Kingdom, including more than 400 restaurants and a flagship hotel in Toronto.