Hyatt Hotels (H) AI Stock Analysis

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Hyatt Hotels

(NYSE:H)

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Neutral 66 (OpenAI - 4o)

Rating:66Neutral

Price Target:

$154.00

▲(7.66% Upside)

Hyatt's overall stock score reflects strong financial performance and a positive outlook from the earnings call, despite valuation concerns and technical indicators suggesting caution. The company's strategic initiatives and growth in luxury segments are significant strengths, but cash flow issues and high leverage pose risks.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust recovery and expansion in the travel lodging sector, enhancing long-term business prospects.

Asset-Light Model

The shift towards an asset-light model reduces capital expenditure and enhances profitability, supporting sustainable long-term growth.

Loyalty Program Expansion

Growth in loyalty membership strengthens customer retention and repeat business, contributing to stable revenue streams.

Negative Factors

Declining Margins

Declining margins suggest rising costs or pricing pressure, which could impact long-term profitability if not addressed.

High Leverage

Increased leverage can strain financial flexibility and increase risk, potentially impacting future investment and growth opportunities.

Cash Flow Challenges

Reduced free cash flow limits the company's ability to reinvest in growth initiatives and manage debt, posing a risk to financial health.

Hyatt Hotels (H) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.71B

Dividend Yield0.42%

Average Volume (3M)865.17K

Price to Earnings (P/E)33.9

Beta (1Y)1.22

Revenue Growth0.74%

EPS Growth-54.42%

CountryUS

Employees52,000

SectorConsumer Cyclical

Sector Strength84

IndustryTravel Lodging

Share Statistics

EPS (TTM)0.68

Shares Outstanding42,337,032

10 Day Avg. Volume746,479

30 Day Avg. Volume865,174

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)4.42

Price to Sales (P/S)4.75

P/FCF Ratio33.83

Enterprise Value/Market Cap1.39

Enterprise Value/Revenue4.55

Enterprise Value/Gross Profit14.96

Enterprise Value/Ebitda25.97

Forecast

1Y Price Target

$159.09

Price Target Upside11.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Hyatt Hotels Business Overview & Revenue Model

Company DescriptionHyatt 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 MoneyHyatt Hotels generates revenue primarily through three key streams: room rentals, food and beverage sales, and management and franchise fees. Room rentals constitute the largest portion of its revenue, derived from guests staying at Hyatt's owned, leased, and managed properties. Food and beverage sales come from on-site restaurants, bars, and catering services offered at the hotels. Additionally, Hyatt earns significant income from management and franchise agreements, where it provides operational support and brand recognition to independent hotel owners in exchange for a percentage of their revenue. The company's loyalty program, Hyatt World, also plays a crucial role in attracting repeat business and enhancing customer retention. Strategic partnerships with airlines and other travel-related companies further bolster Hyatt’s earnings by facilitating cross-promotional opportunities and enhancing the overall guest experience.

Hyatt Hotels Key Performance Indicators (KPIs)

Any

Pipeline of Rooms

Pipeline of Rooms
Indicates the number of new hotel rooms planned or under construction, highlighting future growth prospects and expansion strategy.

Chart InsightsHyatt's pipeline of rooms has shown consistent growth, reaching 138,000 rooms by early 2025, reflecting a 7% year-over-year increase. This expansion aligns with the company's strategic initiatives, including the launch of the Hyatt Select brand targeting the upper midscale segment. Despite macroeconomic uncertainties and softening booking trends, Hyatt's asset-light model and strong international demand are expected to sustain growth. The World of Hyatt loyalty program's expansion further supports this trajectory, although a cautious RevPAR growth outlook suggests potential challenges ahead.

Data provided by:

Main Street Data

Hyatt Hotels Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

The earnings call presented a mostly positive outlook for Hyatt with key achievements in acquisitions, loyalty program growth, and brand expansion. However, there were challenges in business transient demand and cautious sentiment in China. Despite these lowlights, the strategic moves towards an asset-light model and strong performance in luxury segments create a favorable outlook.

Q2-2025 Updates

Positive Updates

Acquisition of Playa Hotels & Resorts

Hyatt successfully closed the acquisition of Playa Hotels & Resorts, adding 15 all-inclusive resorts to its portfolio. The acquisition is expected to be accretive to shareholders in the first full year and demonstrates a commitment to an asset-light business model.

Strong RevPAR Growth in Luxury Brands

System-wide RevPAR growth was 1.6% for the quarter, with luxury brands experiencing a growth of over 5%. All-inclusive net package RevPAR increased 6% in the Americas compared to the previous year.

Increase in World of Hyatt Membership

The World of Hyatt loyalty program saw a 21% increase in membership compared to the second quarter of 2024, ending the quarter with over 58 million members.

Net Rooms Growth and Pipeline Expansion

Hyatt achieved net rooms growth of 11.8% during the quarter, including 2,600 rooms from the Playa acquisition. The development pipeline increased by 8% over last year, with signings up over 30%.

Introduction of Unscripted by Hyatt

Hyatt introduced a new brand, Unscripted by Hyatt, designed to unlock growth through conversion-friendly opportunities in the upscale and upper mid-scale segments.

Negative Updates

Flat Business Transient RevPAR

Business transient RevPAR was flat for the quarter, with a 1.5% decline in the United States driven by select service hotels.

Challenges in Lower Chain Scales

RevPAR for upscale hotels was 1% below last year due to softer business transient demand, and lower chain scales underperformed full-service chain scales in the U.S.

Limited Visibility and Caution in China

Visibility remains limited in Greater China, with a cautious and conservative sentiment prevailing. Total fees from China represent roughly 7% of Hyatt's total fee base, indicating a significant but uncertain market.

Company Guidance

During the Hyatt Second Quarter 2025 Earnings Conference Call, the company provided several metrics and insights into its recent performance and future outlook. Hyatt announced a system-wide RevPAR growth of 1.6% for the quarter, adjusted to 2.2% when accounting for the Easter shift. In 2026, management fees are expected to increase by $60 million to $65 million, following the company's acquisition of Playa Hotels & Resorts and subsequent real estate sale. Additionally, the company achieved net rooms growth of 11.8% during the quarter, with a pipeline expansion of approximately 140,000 rooms. Gross fees in the quarter rose by 9.5% to $301 million, while adjusted EBITDA reached $303 million, marking a 9% increase after adjusting for asset sales. Hyatt anticipates maintaining a net rooms growth outlook of 6% to 7% for the full year, excluding Playa acquisition impacts, and expects adjusted EBITDA for 2025 to be between $1.085 billion to $1.13 billion. The company reiterated its commitment to an asset-light business model, aiming for asset-light earnings to surpass 90% by 2027.

Hyatt Hotels Financial Statement Overview

Summary

Hyatt Hotels demonstrates a strong financial recovery post-pandemic with solid profitability and operational efficiency. The income statement shows robust margins, though revenue growth has been inconsistent. The balance sheet reflects moderate financial health with strategic leverage use, while cash flow management is stable but could improve in free cash flow growth.

Income Statement

Positive

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

Positive

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

Neutral

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.19B	3.30B	3.61B	3.27B	1.45B	780.00M
Gross Profit	1.28B	1.40B	1.39B	1.30B	481.00M	88.00M
EBITDA	735.00M	749.00M	728.00M	853.00M	59.00M	-322.00M
Net Income	432.00M	1.30B	220.00M	455.00M	-222.00M	-703.00M
Balance Sheet
Total Assets	15.91B	13.32B	12.83B	12.31B	12.60B	9.13B
Cash, Cash Equivalents and Short-Term Investments	912.00M	1.38B	896.00M	1.15B	1.19B	1.88B
Total Debt	6.33B	4.06B	3.37B	3.45B	4.36B	3.65B
Total Liabilities	12.02B	9.50B	9.27B	8.61B	9.04B	5.92B
Stockholders Equity	3.56B	3.55B	3.56B	3.70B	3.56B	3.21B
Cash Flow
Free Cash Flow	132.00M	463.00M	599.00M	473.00M	204.00M	-733.00M
Operating Cash Flow	300.00M	636.00M	800.00M	674.00M	315.00M	-611.00M
Investing Cash Flow	-733.00M	81.00M	-365.00M	416.00M	-1.77B	-736.00M
Financing Cash Flow	81.00M	-618.00M	-578.00M	-1.11B	1.29B	1.52B

Hyatt Hotels Technical Analysis

Technical Analysis Sentiment

Positive

Last Price143.04

Price Trends

50DMA

143.14

Negative

100DMA

137.97

Positive

200DMA

139.20

Positive

Market Momentum

MACD

0.20

Positive

RSI

50.70

Neutral

STOCH

39.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For H, the sentiment is Positive. The current price of 143.04 is below the 20-day moving average (MA) of 143.50, below the 50-day MA of 143.14, and above the 200-day MA of 139.20, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for H.

Hyatt Hotels Risk Analysis

Hyatt Hotels disclosed 53 risk factors in its most recent earnings report. Hyatt Hotels reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Hyatt Hotels Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	77 Outperform	11.45B	24.15	30.94%	6.68%	4.43%	1.61%
WH	72 Outperform	6.35B	19.49	58.77%	1.94%	3.65%	38.50%
HLT	70 Outperform	63.18B	41.26	-34.62%	0.22%	6.26%	38.11%
H	66 Neutral	$13.71B	33.88	11.66%	0.42%	0.74%	-54.42%
IHG	63 Neutral	18.19B	24.96	-27.16%	1.44%	8.89%	23.20%
MAR	59 Neutral	72.89B	30.29	-83.23%	0.97%	5.12%	-11.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

Hyatt Hotels

143.04

-7.91

-5.24%

HTHT

H World Group

38.78

10.66

37.91%

IHG

Intercontinental Hotels Group

119.77

13.05

12.23%

MAR

Marriott International

268.52

29.16

12.18%

HLT

Hilton Worldwide Holdings

268.61

44.47

19.84%

Wyndham Hotels & Resorts

83.14

5.21

6.69%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 19, 2025