Bernstein expects 2026 to be ‘a good year’ for Hyatt

Bernstein notes that last night, Hyatt (H) provided an update that confirmed that Hyatt had completed the disposal of the real estate associated with Playa, and revised down full year guidance due to some longer lasting effects of Hurricane Melissa to about $1,160M of EBITDA, a 1.5% downgrade but only 0.3% below current Bloomberg consensus. Despite the impact of the disposal/hurricane, the firm says it expects 2026 to be a good year for Hyatt, with industry leading RevPAR growth, 12% EBITDA growth, 4% margin expansion and a further shift towards asset light. At 15-times 2027 EBITDA the stock remains discounted to peers despite faster growth and more catalysts, Bernstein argues. The firm has an Outperform rating on the shares with a price target of $188.