Hyatt Hotels (H) AI Stock Analysis

• Market Cap: $13.83B
• Dividend Yield: 0.42%
• Average Volume (3M): 981.35K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 1.24
• Revenue Growth: 0.74%
• EPS Growth: -54.42%
• Country: US
• Employees: 52,000
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Travel Lodging
• EPS (TTM): 0.68
• Shares Outstanding: 42,337,032
• 10 Day Avg. Volume: 941,111
• 30 Day Avg. Volume: 981,354
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 5.93
• Enterprise Value/Gross Profit: 13.57
• Enterprise Value/Ebitda: 23.42
• 1Y Price Target: $154.21
• Price Target Upside: 7.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: $158.00 ▲(10.53% Upside)

Hyatt Hotels' overall stock score reflects a strong financial recovery and positive strategic initiatives, particularly in expanding its asset-light model and luxury segments. Technical analysis and valuation present some concerns, with mixed market signals and a high P/E ratio. The earnings call highlights strategic growth and expansion, though challenges in certain markets remain.

Positive Factors

Asset Sales

The sale of Playa's real estate portfolio to Tortuga Resorts is expected to accelerate the timeline for $2B of asset sales initially expected by the end of 2027.

Market Position

Hyatt has been able to push its all-inclusive LATAM/Caribbean growth, capturing hotels directly from rival brands and growing its share in the segment.

Revenue Growth

Hyatt Hotels reported stronger-than-expected EBITDA largely due to improved performance in Owned and Leased segments.

Negative Factors

Earnings Volatility

The transaction results in Hyatt acquiring an asset-light fee stream at a discount to its current multiple and nearly all recent M&A transactions, but short-term volatility concerns remain.

Financial Leverage

The deal should still be viewed favorably for de-risking the earnings profile, reducing financial and operating leverage.

Revenue Expectations

RevPAR growth has decelerated, which could impact future revenue expectations.

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 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 Financial Statement Overview

Summary

Hyatt Hotels demonstrates strong financial recovery with robust profitability and operational efficiency. The balance sheet shows strategic leverage use, though more equity financing could enhance stability. Cash flow management is stable, but improvements in free cash flow growth are needed.

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	3.22B	3.30B	3.61B	3.27B	1.45B	780.00M
Gross Profit	1.41B	1.40B	1.39B	1.30B	481.00M	88.00M
EBITDA	815.00M	749.00M	728.00M	853.00M	59.00M	-322.00M
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: 142.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 142.95 is above the 20-day moving average (MA) of 140.51, above the 50-day MA of 142.86, and above the 200-day MA of 140.00, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 72.40 is Neutral, 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
HTHT	77 Outperform	$11.37B	22.95	30.38%	4.24%	4.43%	1.61%
WH	74 Outperform	$6.61B	20.30	56.16%	1.83%	3.65%	38.50%
HLT	70 Outperform	$64.93B	42.41	-41.19%	0.22%	6.26%	38.11%
H	69 Neutral	$13.83B	34.17	11.66%	0.42%	0.74%	-54.42%
IHG	63 Neutral	$18.17B	25.01	-27.16%	1.44%	8.89%	23.20%
Sector *	61 Neutral	$17.87B	13.25	-4.88%	3.05%	1.25%	-14.67%
MAR	59 Neutral	$72.71B	30.22	-144.82%	0.98%	5.12%	-11.48%

Hyatt Hotels Corporate Events

Hyatt Hotels Reports Q2 2025 Financial Results

On August 7, 2025, Hyatt Hotels Corporation reported its second quarter 2025 financial results, highlighting a 1.6% increase in RevPAR and an 11.8% net rooms growth. The company also announced the completion of the Playa Hotels Acquisition and plans to sell the acquired real estate, reinforcing its asset-light strategy. Hyatt projects continued growth in RevPAR and net rooms for the full year 2025, with expectations of strong financial performance driven by its brand-led strategy.

Hyatt Hotels Appoints New Head of Owner Relations

On July 1, 2025, James K. Chu transitioned to the role of Head of Owner Relations at Hyatt Hotels Corporation, leaving his previous position as Executive Vice President, Chief Growth Officer. This change in leadership may influence Hyatt’s strategic focus and stakeholder engagement, potentially impacting its growth and development strategies.

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.

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.

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.