Hyatt Hotels (H) AI Stock Analysis

• Market Cap: $11.60B
• Dividend Yield: 0.49%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.23
• Revenue Growth: -7.38%
• EPS Growth: 19.62%
• Country: US
• Employees: 52,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Travel Lodging
• EPS (TTM): 0.46
• Shares Outstanding: 41,943,710
• 10 Day Avg. Volume: 1,056,789
• 30 Day Avg. Volume: 1,038,162
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $144.92
• Price Target Upside: 17.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Hyatt Hotels Corporation has a solid overall score driven by strong financial performance and strategic corporate actions. The company's robust recovery, favorable valuation, and strategic acquisitions underpin its strengths. However, technical indicators and macroeconomic uncertainties present moderate risks. Overall, Hyatt is well-positioned for future growth, but careful monitoring of cash flow and market conditions is advised.

Positive Factors

Earnings Performance

Hyatt produced a rare beat, having missed on EBITDA in every quarter in FY24.

Revenue Growth

RevPAR grew 5.7%, well ahead of any expectations and drove $279m of EBITDA, 14% ahead of consensus.

Strategic Expansion

Hyatt has announced a new Upper Midscale brand called Hyatt Select, a conversion focused select service brand initially targeted at the Americas, before plans to scale the brand globally.

Negative Factors

Financial Setbacks

A bad debt charge of $20 million in 4Q drove the 4Q EBITDA miss, related to the German bankruptcy risk.

Investor Expectations

Management appears content with lower growth rates than previously guided, which has not met investor expectations.

Stock Price Drop

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 demonstrates robust financial recovery with strong profitability and operational efficiency post-pandemic. The income statement shows solid margins, while the balance sheet indicates good shareholder returns, despite moderate leverage. Cash flow management is stable but needs improvement in free cash flow growth.

Income Statement

Hyatt Hotels has shown a robust recovery in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 32.35%, indicating efficient cost management. The net profit margin in the TTM is about 12.89%, reflecting strong profitability. Revenue growth has been inconsistent, with a slight decrease in revenue in the latest TTM compared to the previous year. However, the EBIT margin of 24.0% and EBITDA margin of 14.63% in the TTM highlight solid operational performance.

Balance Sheet

Hyatt's balance sheet shows moderate financial health. The debt-to-equity ratio in the latest TTM is approximately 1.33, which indicates a balanced leverage position. The return on equity (ROE) is around 24.68%, suggesting good returns to shareholders. The equity ratio of approximately 24.72% points to a modest reliance on equity financing. However, a higher equity ratio would be preferable for stability.

Cash Flow

The cash flow statement reveals a mixed trend. The operating cash flow to net income ratio is about 0.64, indicating a decent conversion of profits into cash. The free cash flow to net income ratio is approximately 0.44, demonstrating reasonable cash generation after capital expenditures. However, the free cash flow growth rate is negative, reflecting challenges in increasing cash reserves.

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
1.38B	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
636.00M	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: Neutral
• Last Price: 123.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For H, the sentiment is Neutral. The current price of 123.85 is above the 20-day moving average (MA) of 113.42, above the 50-day MA of 120.95, and below the 200-day MA of 143.93, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 60.20 is Neutral, neither overbought nor oversold. The STOCH value of 86.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for H.

Hyatt Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLT	73 Outperform	$56.24B	37.69	-41.19%	0.25%	7.43%	38.52%
H	72 Outperform	$11.60B	15.84	22.31%	0.49%	-7.38%	19.62%
HTHT	70 Outperform	$10.97B	28.00	25.06%	4.29%	7.68%	-25.12%
IHG	66 Neutral	$17.40B	29.27	-27.16%	1.44%	6.34%	-11.99%
MAR	63 Neutral	$69.38B	29.69	-144.82%	1.00%	5.45%	-9.50%
WH	62 Neutral	$6.42B	19.99	53.31%	1.86%	4.79%	48.48%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%

Hyatt Hotels Corporate Events

Hyatt Hotels Reports Strong Q1 2025 Financial Results

On May 1, 2025, Hyatt Hotels Corporation reported its first quarter 2025 financial results, highlighting a 5.7% increase in comparable system-wide hotels RevPAR and a 10.5% net rooms growth compared to the first quarter of 2024. The company achieved a net income of $20 million and adjusted net income of $46 million, with gross fees rising by 16.9%. Hyatt’s strategic focus on asset-light business models and strong brand portfolio positions it well amidst economic volatility, as evidenced by its robust pipeline and continued demand for its brands globally. The company is advancing its Playa Hotels Acquisition and has issued senior notes to finance the transaction, while maintaining a strong liquidity position with $3.3 billion in total liquidity as of March 31, 2025.

Spark’s Take on H Stock

According to Spark, TipRanks’ AI Analyst, H is a Neutral.

Hyatt Hotels shows a strong recovery trajectory with notable revenue growth and strategic acquisitions supporting future growth. Despite the current bearish technical indicators, the company’s valuation appears attractive, and its strategic initiatives position it well for long-term success.

To see Spark’s full report on H stock, click here.

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.