Hyatt Hotels (H) AI Stock Analysis

• Market Cap: $12.86B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.24
• Revenue Growth: -7.38%
• EPS Growth: 19.62%
• Country: US
• Employees: 52,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Travel Lodging
• EPS (TTM): 0.46
• Shares Outstanding: 41,943,710
• 10 Day Avg. Volume: 879,954
• 30 Day Avg. Volume: 1,014,777
• 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: 0.96
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 7.49
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $143.92
• Price Target Upside: 7.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 72 Outperform
• Price Target: $147.00 ▲(9.40%Upside)

Hyatt Hotels' robust financial performance and strategic initiatives contribute positively to its stock score. The company's strong EBITDA growth and successful brand expansion are significant strengths. However, macroeconomic uncertainties and revised RevPAR growth outlook pose potential risks. The stock's technical indicators suggest stability, while valuation metrics indicate a fair pricing relative to earnings and dividends.

Positive Factors

Earnings

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

Financial Performance

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

Negative Factors

Management Guidance

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

Stock Price

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 is a leading global hospitality company headquartered in Chicago, Illinois. It operates in the hotel, resort, and vacation ownership sectors, offering premium accommodation services across a diverse range of brands. Hyatt's portfolio includes full-service, select-service, lifestyle, and resort properties, catering to both business and leisure travelers. The company aims to deliver personalized experiences through its high-quality services, innovative hospitality solutions, and commitment to customer satisfaction.

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
	EBIT
1.00B	2.75B	322.00M	363.00M	-242.00M	-794.00M
	EBITDA
1.11B	2.11B	799.00M	789.00M	68.00M	0.00
	Net Income Common Stockholders
794.00M	1.30B	220.00M	455.00M	-222.00M	-703.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	1.38B	896.00M	1.15B	1.19B	1.88B
	Total Assets
14.00B	13.32B	12.83B	12.31B	12.60B	9.13B
	Total Debt
4.61B	4.06B	3.37B	3.45B	4.36B	3.65B
	Net Debt
2.87B	3.05B	2.49B	2.46B	3.40B	2.44B
	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: 134.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 134.37 is above the 20-day moving average (MA) of 131.90, above the 50-day MA of 122.19, and below the 200-day MA of 142.52, indicating a neutral trend. The MACD of 2.57 indicates Positive momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 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
HLT	73 Outperform	$60.27B	39.99	-41.19%	0.24%	7.43%	38.52%
H	72 Outperform	$12.86B	17.46	22.31%	0.45%	-7.38%	19.62%
HTHT	70 Outperform	$10.49B	25.31	28.90%	4.42%	5.20%	-11.08%
IHG	70 Neutral	$17.92B	30.16	-27.16%	1.43%	6.34%	-11.99%
MAR	69 Neutral	$73.42B	30.53	-144.82%	0.96%	5.45%	-9.50%
WH	67 Neutral	$6.45B	19.91	53.31%	1.96%	4.79%	48.48%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%

Hyatt Hotels Corporate Events

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.

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.