Hyatt Hotels (H) AI Stock Analysis

• Market Cap: $13.88B
• Dividend Yield: 0.41%
• Average Volume (3M): 991.59K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.27
• Revenue Growth: -7.38%
• EPS Growth: 19.62%
• Country: US
• Employees: 52,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Travel Lodging
• EPS (TTM): 0.46
• Shares Outstanding: 41,943,710
• 10 Day Avg. Volume: 1,256,499
• 30 Day Avg. Volume: 991,589
• PEG Ratio: -0.07
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.86
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $147.07
• Price Target Upside: 1.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $157.00 ▲(7.99%Upside)

Hyatt Hotels shows strong financial recovery and technical momentum, bolstered by strategic corporate actions. However, macroeconomic uncertainties and revenue growth challenges temper the outlook.

Positive Factors

Asset Sale

Hyatt's sale of Playa's real estate portfolio is likely to be taken positively by investors due to the asset-heavy nature of the business and heightened debt concerns.

Earnings Potential

Hyatt is expected to earn $60-65M of stabilized EBITDA, aligning with the higher end of estimates.

Market Position

The sale allows Hyatt to rebrand all hotels to Hyatt, which represents a market share win from major peers.

Negative Factors

Financial Outlook

Rest of year expectations come down on 'recent shifts in booking behavior', now expect rest of the year to be 0-2%.

Market Volatility

The deal is seen as ultimately accretive for Hyatt shareholders despite short-term volatility concerns.

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 generates revenue primarily through room rentals, food and beverage sales, and other guest services offered across its properties worldwide. The company earns income by managing and franchising hotels, resorts, and residential properties under various brand names, including Park Hyatt, Grand Hyatt, Hyatt Regency, and Hyatt Place, among others. Hyatt also benefits from its loyalty program, World of Hyatt, which encourages repeat bookings and enhances customer engagement. Additionally, the company has strategic partnerships with hotel owners and developers, which expand its brand presence and contribute to its earnings through management and franchise fees. Real estate sales and licensing agreements further complement its revenue streams.

Hyatt Hotels Financial Statement Overview

Summary

Hyatt Hotels shows strong profitability with a TTM net profit margin of 12.89% and an EBIT margin of 24.0%. The balance sheet is moderately healthy, with a debt-to-equity ratio of 1.33 and ROE of 24.68%. Cash flow management is stable, although free cash flow growth is negative, indicating challenges in cash reserves.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.63B	6.65B	6.67B	5.89B	3.03B	2.07B
Gross Profit	1.65B	3.30B	1.32B	1.29B	425.00M	-1.00M
EBITDA	1.11B	2.11B	799.00M	789.00M	68.00M	0.00
Net Income	794.00M	1.30B	220.00M	455.00M	-222.00M	-703.00M
Balance Sheet
Total Assets	14.00B	13.32B	12.83B	12.31B	12.60B	9.13B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.38B	896.00M	1.15B	1.19B	1.88B
Total Debt	4.61B	4.06B	3.37B	3.45B	4.36B	3.65B
Total Liabilities	10.24B	9.50B	9.27B	8.61B	9.04B	5.92B
Stockholders Equity	3.46B	3.55B	3.56B	3.70B	3.56B	3.21B
Cash Flow
Free Cash Flow	378.00M	463.00M	599.00M	473.00M	204.00M	-733.00M
Operating Cash Flow	544.00M	636.00M	800.00M	674.00M	315.00M	-611.00M
Investing Cash Flow	244.00M	81.00M	-365.00M	416.00M	-1.77B	-736.00M
Financing Cash Flow	166.00M	-618.00M	-578.00M	-1.11B	1.29B	1.52B

Hyatt Hotels Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 145.39 is above the 20-day moving average (MA) of 135.38, above the 50-day MA of 129.28, and above the 200-day MA of 141.81, indicating a bullish trend. The MACD of 3.58 indicates Negative momentum. The RSI at 73.49 is Negative, neither overbought nor oversold. The STOCH value of 83.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for H.

Hyatt Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H	75 Outperform	$13.88B	18.84	22.31%	0.41%	-7.38%	19.62%
MAR	72 Outperform	$76.16B	31.67	-144.82%	0.96%	5.45%	-9.50%
WH	69 Neutral	$6.40B	19.74	53.31%	1.97%	4.79%	48.48%
HTHT	68 Neutral	$10.24B	24.00	28.90%	4.67%	5.20%	-11.08%
IHG	66 Neutral	$17.89B	30.11	-27.16%	3.90%	6.34%	-11.99%
HLT	65 Neutral	$63.93B	42.43	-41.19%	0.22%	7.43%	38.52%
Sector *	61 Neutral	AU$2.82B	25.97	5.01%	5.20%	2.63%	-29.95%

Hyatt Hotels Corporate Events

Hyatt Hotels Sells Playa’s Real Estate Portfolio

On June 17, 2025, Hyatt Hotels completed its acquisition of Playa Hotels & Resorts, and subsequently, on June 29, 2025, entered into an agreement to sell Playa’s real estate portfolio to Tortuga Resorts for $2.0 billion. This transaction, expected to close by the end of 2025, aligns with Hyatt’s asset-light strategy, allowing it to retain management agreements for 13 of the 15 properties and maintain a $200 million preferred equity stake. The sale will help Hyatt repay a term loan and is projected to enhance its fee-based earnings, with an expected adjusted EBITDA of $60 to $65 million by 2027.

The most recent analyst rating on (H) stock is a Buy with a $156.00 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.

Hyatt Hotels Completes Acquisition of Playa Hotels

On June 17, 2025, Hyatt Hotels Corporation completed the acquisition of Playa Hotels & Resorts N.V., a prominent owner and operator of all-inclusive resorts in Mexico, the Dominican Republic, and Jamaica. This acquisition includes 15 all-inclusive resorts, expanding Hyatt’s portfolio and reinforcing its leadership in the all-inclusive segment. The transaction enhances Hyatt’s capabilities to deliver unique guest experiences and strengthens its brand presence in premier beach destinations. The acquisition is part of Hyatt’s strategic growth in the all-inclusive market, which began with the launch of Hyatt Ziva and Hyatt Zilara brands in 2013 and continued with the acquisition of Apple Leisure Group in 2021. Hyatt financed the acquisition with a $1.7 billion delayed draw term loan facility.

The most recent analyst rating on (H) stock is a Hold with a $141.00 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.

Hyatt Hotels Announces Board Changes at Annual Meeting

During the Annual Meeting on May 21, 2025, Hyatt Hotels Corporation announced changes to its Board of Directors, including the departure of Michael A. Rocca and the retirement of James H. Wooten, Jr., resulting in a reduction of board members from thirteen to eleven. Additionally, Tracey T. Travis was appointed to the Audit Committee. Stockholders elected Class I directors, ratified Deloitte & Touche LLP as the accounting firm, rejected a proposal to eliminate the multi-class share structure, and approved executive compensation.

The most recent analyst rating on (H) stock is a Hold with a $157.50 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.

Hyatt Hotels Amends Purchase Agreement with Playa

On May 16, 2025, Hyatt Hotels Corporation, along with Playa Hotels & Resorts N.V. and its subsidiary, amended a purchase agreement initially dated February 9, 2025. The amendment specifically clarifies the exclusion of certain restricted shares from Playa’s share capital in the context of a tender offer, without altering other terms of the agreement.

The most recent analyst rating on (H) stock is a Hold with a $141.00 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.

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.