Hyatt: Event-Driven Upside, Accelerating Asset-Light Growth, and Valuation Discount Support Buy Rating

Lizzie Dove, an analyst from Goldman Sachs, has initiated a new Buy rating on Hyatt Hotels (H).

Lizzie Dove has given his Buy rating due to a combination of factors that point to meaningful upside in Hyatt’s shares over the next year. He expects Hyatt’s key operating indicators to strengthen in 2026, supported by robust demand from higher-end travelers, international markets, and group and leisure segments, with an additional boost from the company’s sizable exposure to the upcoming World Cup. This event-driven lift, together with solid underlying demand trends, is anticipated to translate into faster revenue per available room growth relative to peers.

Furthermore, Lizzie Dove sees a clear path to stronger net rooms growth in 2026, with a large portion of the planned additions already effectively secured, which reinforces visibility into future earnings. He also highlights an improving free cash flow profile, projecting a notable step-up in the share of earnings that convert into cash as the business mix continues to tilt more asset-light. Even with these improving fundamentals, Hyatt’s stock still trades at a meaningful valuation discount to major competitors such as Marriott and Hilton, leading him to conclude that there is room for multiple expansion as execution on growth, cash generation, and portfolio reshaping continues. Overall, these dynamics underpin his view that Hyatt’s shares offer attractive risk-reward and justify a Buy recommendation.

According to TipRanks, Dove is a 3-star analyst with an average return of 2.6% and a 57.33% success rate. Dove covers the Consumer Cyclical sector, focusing on stocks such as Wynn Resorts, Norwegian Cruise Line, and Choice Hotels.

In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $223.00 price target.