Private equity firms Madrone Capital Partners and Goldman Sachs Capital Partners agreed to invest $1 billion in closely held Global Hyatt Corp, the hotel company's chairman, Tom Pritzker, said on Wednesday.

Madrone, a private investment firm affiliated with Wal-Mart Stores Inc Chairman Rob Walton and his family, and the private equity arm of Goldman Sachs Group Inc will each receive a board seat.

Pritzker said the minority equity investment will be used primarily to provide liquidity to the Pritzker family interests that currently own Global Hyatt.

The extended family is in the process of restructuring the family's holdings. Hyatt is a medium-sized U.S.-based hotel company with more than 735 hotels and resorts in 44 countries, under brands such as Grand Hyatt, Hyatt Resorts and Andaz.

The company aims to open a string of new hotels around the world as it looks to keep pace with ever-expanding competitors such as Hilton Hotels Corp and Marriott International Inc.

The addition of these sophisticated investors with long-term horizons will allow us to further our restructuring efforts without affecting Global Hyatt's financial capacity to grow and execute on our business plan, Pritzker said in a statement.

Pritzker did not disclose details about the structure of the deal.

Global Hyatt's new board members will be Greg Penner, a general partner of Madrone, and Byron Trott, a vice chairman of investment banking at Goldman Sachs.

(Reporting by Lisa Lee)