Bernstein analyst Richard Clarke has maintained their bullish stance on H stock, giving a Buy rating on September 9.
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Richard Clarke’s rating is based on several compelling factors that position Hyatt Hotels favorably in the market. One of the primary reasons is Hyatt’s robust fee revenue growth algorithm, which is expected to outpace its peers. This growth is driven by a strong mix of high-end U.S. and international markets, leading to higher RevPAR growth. Additionally, Hyatt’s medium-term net unit growth (NUG) outlook of 6-7% or above is anticipated to drive this fee growth without the need for mergers and acquisitions, focusing instead on expanding within existing market opportunities, particularly in the midscale segment.
Another significant factor is Hyatt’s industry-leading loyalty program, World of Hyatt, which attracts a high-income demographic that tends to spend more and stay longer. This program not only provides clear and valuable rewards for members but also supports negotiations for credit card deals due to its strong growth. Furthermore, the recent Playa deal, although a one-off, has been accretive, adding substantial EBITDA. Hyatt’s strategy of focusing on asset-light opportunities while remaining open to opportunistic asset-light mergers and acquisitions further strengthens its position. These elements combined suggest that Hyatt is well-positioned to lead its peers in revenue and margin improvements, justifying the Buy rating.
According to TipRanks, Clarke is a 4-star analyst with an average return of 5.9% and a 57.52% success rate. Clarke covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, Royal Caribbean, and Marriott International.
In another report released on September 9, Citi also upgraded the stock to a Buy with a $167.00 price target.