Hyatt Hotels (H) AI Stock Analysis

• Market Cap: $10.12B
• Dividend Yield: 0.57%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.22
• Revenue Growth: -6.41%
• EPS Growth: 511.40%
• Country: US
• Employees: 52,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Travel Lodging
• EPS (TTM): 12.44
• Shares Outstanding: 41,917,156
• 10 Day Avg. Volume: 995,824
• 30 Day Avg. Volume: 1,049,867
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.76
• Price to Cash Flow (P/CF): 12.40
• P/FCF Ratio: 12.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $159.88
• Price Target Upside: 53.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

Hyatt Hotels shows a solid recovery in financial performance with strong revenue growth and robust cash flow. Technical indicators point to a bearish trend, but the valuation appears reasonable. The positive outlook from the earnings call highlights growth prospects despite some regional challenges. Overall, the stock is positioned for moderate growth with some risks to monitor.

Positive Factors

Earnings

Analyst maintains an outperform rating on Hyatt, expecting a bounce back in stock performance.

Real Estate Assets

Recent indications of interest in Playa’s owned real estate portfolio suggest these assets might not remain with Hyatt for long.

Negative Factors

Financial Performance

Consolidated adjusted EBITDA for the quarter was below both the analyst and Street expectations, partly due to higher than expected G&A expenses.

Stock Performance

Hyatt experienced a 9% drop in stock price due to a 7% EBITDA miss and full-year guidance that was 4% below consensus.

Hyatt Hotels Business Overview & Revenue Model

Company Description

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME/SW Asia Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels, select service hotels, resorts, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination, Hyatt Regency, Hyatt, Thompson Hotels, Hyatt Centric, Joie de Vivre, Caption by Hyatt, Hyatt House, Hyatt Place, Hyatt Ziva, Hyatt Zilara, UrCove, Hyatt Residence Club, Hyatt Residences, Hyatt Resorts, Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas, Zoetry Wellness & Spa Resorts, Alua Hotels & Resorts, and Sunscape Resorts & Spas brands. As of March 31, 2022, the company's hotel portfolio consisted of approximately 540 hotels comprising 113,000 rooms worldwide. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. The company also operates World of Hyatt loyalty program which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Hyatt Hotels Corporation primarily generates revenue through several key streams: room rentals, food and beverage sales, and other associated services offered in their hotels, such as spa services, conferences, and events. Additionally, the company earns income through management and franchise fees from properties it does not own but operates under its brand names. Hyatt's revenue is significantly influenced by its strategic partnerships and global market presence, which allow the company to leverage its brand and expand its footprint across diverse geographical locations.

Hyatt Hotels Financial Statement Overview

Summary

Hyatt Hotels has shown solid revenue and profit growth post-pandemic, with improving margins. The balance sheet shows moderate leverage, but a declining equity ratio poses a potential risk. Strong cash flow performance supports operations effectively.

Income Statement

Hyatt Hotels showed strong revenue growth of 12.4% from 2022 to 2023, rebounding significantly from pandemic lows. Gross profit margin improved to 49.6% in 2023, and the net profit margin increased to 3.3%, indicating a recovery in profitability. However, the EBIT margin was only 4.8%, reflecting room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio stood at 0.95 in 2023, suggesting balanced leverage. However, the equity ratio declined to 27.8%, highlighting decreased equity relative to assets. Return on equity was relatively low at 6.2%, indicating moderate profitability on shareholder equity.

Cash Flow

Hyatt's free cash flow grew by 26.6% in 2023, showing strong cash generation. However, the operating cash flow to net income ratio was 3.64, indicating reliance on cash flow for covering net income shortfalls. Free cash flow to net income ratio was 2.72, showing good cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.65B	6.67B	5.89B	3.03B	2.07B
	Gross Profit
3.30B	1.32B	1.29B	425.00M	-1.00M
	EBIT
2.75B	322.00M	363.00M	-242.00M	-794.00M
	EBITDA
2.11B	799.00M	789.00M	68.00M	0.00
	Net Income Common Stockholders
1.30B	220.00M	455.00M	-222.00M	-703.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.28B	896.00M	1.15B	1.19B	1.88B
	Total Assets
13.32B	12.83B	12.31B	12.60B	9.13B
	Total Debt
4.06B	3.37B	3.45B	4.36B	3.65B
	Net Debt
3.05B	2.49B	2.46B	3.40B	2.44B
	Total Liabilities
9.50B	9.27B	8.61B	9.04B	5.92B
	Stockholders Equity
3.55B	3.56B	3.70B	3.56B	3.21B
Cash Flow		Free Cash Flow
463.00M	599.00M	473.00M	204.00M	-733.00M
	Operating Cash Flow
633.00M	800.00M	674.00M	315.00M	-611.00M
	Investing Cash Flow
81.00M	-365.00M	416.00M	-1.77B	-736.00M
	Financing Cash Flow
-618.00M	-578.00M	-1.11B	1.29B	1.52B

Hyatt Hotels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For H, the sentiment is Negative. The current price of 104.27 is below the 20-day moving average (MA) of 120.65, below the 50-day MA of 136.82, and below the 200-day MA of 147.72, indicating a bearish trend. The MACD of -5.17 indicates Negative momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for H.

Hyatt Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	74 Outperform	$9.86B	24.26	25.06%	3.74%	7.68%	-25.12%
HLT	72 Outperform	$48.91B	33.25	-41.19%	0.29%	9.17%	42.78%
WH	72 Outperform	$6.17B	22.06	41.40%	1.95%	―	6.40%
H	64 Neutral	$10.12B	8.38	36.45%	0.57%	-6.41%	511.40%
IHG	62 Neutral	$15.25B	25.95	-27.16%	1.58%	6.34%	-11.99%
Sector *	59 Neutral	$10.97B	9.83	-1.56%	4.06%	1.31%	-16.49%
MAR	55 Neutral	$58.75B	25.62	-144.82%	1.18%	5.85%	-18.43%

Hyatt Hotels Corporate Events

Hyatt Hotels Expands Board with New Appointment

On March 18, 2025, Hyatt Hotels Corporation expanded its Board of Directors from twelve to thirteen members by appointing Tracey T. Travis as a Class I member. This strategic move is part of the company’s ongoing efforts to enhance its leadership structure, potentially impacting its governance and strategic direction.

Hyatt Reports Strong 2024 Financial Results and Strategic Plans

On February 13, 2025, Hyatt Hotels Corporation reported its financial results for the fourth quarter and full year of 2024, highlighting a 4.6% increase in full year RevPAR and a net income of $1,296 million. The company executed several strategic acquisitions, including Standard International and Bahia Principe, and announced plans to acquire Playa Hotels & Resorts N.V. for $2.6 billion. Hyatt’s strategic focus on expanding its portfolio and asset-light model positions it to exceed a 90% asset-light earnings mix by 2027, benefiting stakeholders through improved operational efficiency and shareholder returns.

Hyatt Hotels Acquires Playa Hotels & Resorts

On February 9, 2025, Hyatt Hotels Corporation announced entering into a purchase agreement to acquire all outstanding shares of Playa Hotels & Resorts for approximately $2.6 billion. The acquisition is set to enhance Hyatt’s all-inclusive platform, expanding its portfolio and management agreements for luxury all-inclusive properties. The transaction is expected to close later in the year, pending regulatory and shareholder approvals, and it aligns with Hyatt’s asset-light strategy, as the company plans to sell off Playa’s owned properties post-acquisition.