CORRECTED - UPDATE 4-Hyatt stock rises 12 pct in debut

(Corrects to show that the shares rose 12 pct in first paragraph and that $1.06 billion is Hyatt's market cap after first day of trading)

* Hyatt shares up 12 pct in NYSE debut

* Strong balance sheet, industry outlook spur shares

* Second-largest IPO on NYSE this year

* Based on EBITDA valuation, Hyatt trading at discount (Recasts with closing price, adds background on Hilton, detail about next week's IPOs, new analyst quotes)

By Deepa Seetharaman

NEW YORK, Nov 5 (Reuters) - Hyatt Hotels Corp (H.N) shares rose 12 percent in their debut on Thursday as investors snapped up the company's shares enticed by its rich store of cash and robust recovery prospects for the hotel industry.

Chicago-based Hyatt's shares rose to $28 on the New York Stock Exchange. It priced at $25 on Wednesday, within the expected range.

Hyatt's initial public offering is the second-largest on the NYSE this year after Banco Santander (BSBR.N). Ancestry.com Inc (ACOM.O) also went public on the Nasdaq and its shares closed more than 5 percent higher to $14.20. [ID:nN0589649]

"Finally we had two deals that were a lot better quality than what we had been seeing in the last several weeks," said Scott Sweet, a senior managing partner at advisory firm IPO Boutique. "It gives quality deals (next week) momentum."

Discount retailer Dollar General and youth clothing chain rue21 Inc are slated to go public next week.

Little more than half of Hyatt's shares exchanged hands Thursday, Sweet said. Typically 80 percent of shares or more trade in a stock's debut. Hyatt offered 38 million shares.

"Goldman did a good job locking these shares up and putting it in good hands that are likely to hold," Sweet said. "That would account for the reasoning behind why this stock has continued to advance from $27 to $28."

Proceeds from the sale of Class-A shares will go straight to Pritzker family, which controls the company. The company's underwriters, led by Goldman Sachs Group Inc (GS.N), will have one month to exercise an option to buy more shares. If so, that fresh capital will go straight to Hyatt.

The company's market capitalization after its first day of trading was $1.06 billion.

FIVE TIMES THE CASH