Hyatt Hotels (H) AI Stock Analysis

• Market Cap: $15.87B
• Dividend Yield: 0.36%
• Average Volume (3M): 843.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 2.61%
• EPS Growth: -106.74%
• Country: US
• Employees: 52,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 1.33
• Shares Outstanding: 41,336,292
• 10 Day Avg. Volume: 1,095,161
• 30 Day Avg. Volume: 843,396
• PEG Ratio: 2.83
• Price to Book (P/B): 23.92
• Price to Sales (P/S): 2.14
• P/FCF Ratio: 96.29
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.70
• Enterprise Value/Gross Profit: 15.52
• Enterprise Value/Ebitda: 26.59
• 1Y Price Target: $187.50
• Price Target Upside: 17.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 3.43
• Revenue Forecast (FY): $7.24B

• Rating: 68 Neutral
• Price Target: $184.00 ▲(15.25% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by improving fundamentals (strong revenue recovery and better 2025 free cash flow) and a constructive 2026 outlook from management (fee, EBITDA, and free-cash-flow growth plus capital returns). Technicals are supportive with price above key moving averages. The main offset is valuation opacity from a negative P/E and low dividend yield, alongside notable volatility in recent margins and balance sheet comparability.

Positive Factors

Asset-light strategy

Converting owned hotels into long-term management agreements and monetizing real estate materially reduces capital intensity and cyclical earnings exposure. Proceeds repaid debt and funded buybacks, supporting persistent fee-based revenue and higher free-cash-flow conversion over time.

Development pipeline & rooms growth

Robust signings and sustained net room additions expand Hyatt's fee-bearing base and geographic reach. A large executed pipeline drives multi-year organic fee growth, scale benefits for distribution and loyalty, and supports recurring, asset-light margin expansion versus owning properties.

World of Hyatt loyalty

A rapidly growing loyalty base increases repeat bookings, pricing power, and customer lifetime value. High share of occupied rooms from members stabilizes demand, improves RevPAR capture, and supports lower marketing spend per booking, strengthening long-term revenue durability.

Negative Factors

Profitability volatility

Large year-to-year margin swings indicate earnings quality and operating leverage are unstable. Even with revenue recovery, volatile net margins make forward EBITDA and free-cash-flow forecasts less reliable and raise the risk that cost or demand shocks will materially compress profitability.

Balance-sheet comparability risk

Dramatic year-to-year shifts in assets and debt reflect large transactions and timing effects, reducing confidence that the low-leverage snapshot is sustainable. This volatility complicates capital-allocation planning and may mask refinancing or covenant risks in different market cycles.

Business-transient & distribution pressure

Sustained softness in business-transient and select-service demand and pressure in Distribution can erode fee growth and group RevPAR. If corporate travel recovery lags or lower-tier demand weakens structurally, Hyatt’s high-margin fee expansion and RevPAR gains may be harder to sustain.

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 through multiple streams, primarily from room bookings, food and beverage sales, and meeting and event services. The company earns a significant portion of its revenue from franchising and management fees, which are derived from hotels operated under its brand names by third-party owners. Additionally, Hyatt benefits from its World of Hyatt loyalty program, which encourages repeat bookings and fosters customer loyalty, enhancing overall revenue. The company also engages in strategic partnerships with airlines and credit card companies, further expanding its reach and customer base. Seasonal demand variations and business travel trends significantly influence Hyatt's earnings, alongside the company's ongoing efforts to enhance the guest experience and expand its global footprint.

Hyatt Hotels Financial Statement Overview

Summary

Strong post-2020 recovery and 2025 revenue surge, with solid 2025 free cash flow improvement and FCF covering net income. Offsetting this are volatile profitability (net margin fell sharply from 2024 to 2025) and large year-to-year balance sheet shifts that reduce confidence in the stability of the latest low-leverage snapshot.

Income Statement

Revenue rebounded strongly, including a sharp jump in 2025 (annual revenue growth of ~66%) and a multi-year recovery from 2020–2021. Gross margin improved versus earlier years (roughly ~49% in 2025 vs ~11% in 2020), showing healthier unit economics. However, profitability is volatile: net margin swung from very strong in 2024 (~39%) down to low-single digits in 2025 (~3%), and recent operating profitability signals are mixed (e.g., low EBITDA margin in 2025). Overall, the top-line trajectory is strong, but earnings quality and margin consistency are key watch items.

Balance Sheet

Leverage looks much better in the latest period, with debt collapsing to a very low level relative to equity in 2025 (debt-to-equity ~0.00), a major improvement from 2021–2024 when leverage was meaningfully higher (~0.95–1.22). Return on equity is strong in the last two years (~33% in 2025 and ~37% in 2024), supporting the capital structure. The main concern is year-to-year balance sheet volatility: total assets and debt levels shift dramatically between 2024 and 2025, which raises questions about comparability and the sustainability of the latest low-leverage snapshot.

Cash Flow

Cash generation is solid and improved sharply in 2025, with free cash flow rising strongly (free cash flow growth ~565%) and free cash flow fully covering net income (free cash flow to net income ~1.0). The business also recovered meaningfully from 2020 when operating and free cash flow were negative. Offsetting this, cash flow momentum was weaker in 2024 (free cash flow down ~22% year over year), and the relationship between cash flow and debt service appears inconsistent across years, suggesting cash flow durability should be monitored through the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.15B	3.30B	3.61B	3.27B	1.45B
Gross Profit	801.00M	1.40B	1.39B	1.30B	481.00M
EBITDA	720.00M	749.00M	728.00M	853.00M	59.00M
Net Income	-52.00M	1.30B	220.00M	455.00M	-222.00M
Balance Sheet
Total Assets	829.00M	13.32B	12.83B	12.31B	12.60B
Cash, Cash Equivalents and Short-Term Investments	23.00M	1.38B	896.00M	1.15B	1.19B
Total Debt	1.00M	4.06B	3.37B	3.45B	4.36B
Total Liabilities	189.00M	9.50B	9.27B	8.61B	9.04B
Stockholders Equity	640.00M	3.55B	3.56B	3.70B	3.56B
Cash Flow
Free Cash Flow	159.00M	466.00M	599.00M	473.00M	204.00M
Operating Cash Flow	379.00M	636.00M	797.00M	674.00M	315.00M
Investing Cash Flow	357.00M	81.00M	-365.00M	416.00M	-1.77B
Financing Cash Flow	-954.00M	-618.00M	-578.00M	-1.11B	1.29B

Hyatt Hotels Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 159.65
• 50DMA: Negative
• 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 Negative. The current price of 159.65 is below the 20-day moving average (MA) of 162.80, below the 50-day MA of 163.97, and above the 200-day MA of 148.04, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 44.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for H.

Hyatt Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTHT	74 Outperform	$15.98B	30.86	32.28%	3.60%	5.70%	9.53%
IHG	71 Outperform	$21.85B	29.50	―	1.21%	8.89%	23.20%
HLT	69 Neutral	$72.43B	51.60	―	0.21%	6.68%	48.03%
H	68 Neutral	$15.87B	―	-1.51%	0.36%	2.61%	-106.74%
MAR	68 Neutral	$94.33B	37.45	―	0.84%	4.68%	-1.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WH	60 Neutral	$6.06B	32.10	34.53%	2.13%	3.38%	38.04%

Hyatt Hotels Corporate Events

Hyatt Hotels Reports 2025 Results and 2026 Outlook

Hyatt Hotels Corporation reported its fourth-quarter and full-year 2025 results on February 12, 2026, showing system-wide hotels RevPAR growth of 4.0% in the quarter and 2.9% for the year, and particularly strong 8.6% full-year Net Package RevPAR growth at all-inclusive resorts. Full-year net rooms growth reached 7.3%, the pipeline of executed management and franchise contracts expanded to about 148,000 rooms, and Adjusted EBITDA rose 5.8% to $1,159 million despite reported net losses of $20 million in the quarter and $52 million for 2025.

The company accelerated its asset-light strategy by selling the Alua Portfolio and completing the Playa Real Estate Transaction, using proceeds to repay and terminate a $1.7 billion term loan while securing long-term management agreements on the sold properties. Hyatt ended 2025 with $4.3 billion in total debt, $2.3 billion in liquidity, continued share repurchases totaling $293 million for the year, and a declared first-quarter 2026 dividend, while providing 2026 guidance that points to modest RevPAR and rooms growth, higher gross fees, and a sharp swing to positive net income alongside a revised Adjusted EBITDA definition that excludes unconsolidated ventures’ contribution.

Operationally, Hyatt’s fourth quarter was driven by strength in luxury and upper-upscale hotels, robust leisure and group demand, and rising management fees, although franchise fees were pressured by the Playa acquisition structure and softer U.S. select-service demand. The company opened 8,253 rooms in the quarter, including flagship properties such as Park Hyatt Cabo del Sol and Andaz One Bangkok, and grew its development pipeline by 7% in 2025, with strong signings in the U.S., Greater China, and India and rapid expansion of its Hyatt Studios extended-stay brand.

The most recent analyst rating on (H) stock is a Buy with a $179.00 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.

Hyatt Completes $2 Billion Playa Portfolio Sale

On December 30, 2025, Hyatt Hotels Corporation completed the sale of the Playa Hotels & Resorts-owned real estate portfolio to Tortuga Resorts for approximately $2.0 billion, having previously disposed of one asset in September 2025, and retained a $200 million preferred equity stake plus potential earnout of up to $143 million. The transaction, which covers 14 all-inclusive beachfront properties across Mexico, the Dominican Republic and Jamaica, converts Hyatt’s Playa holdings into an entirely asset-light structure while preserving long-term revenue streams through 50-year management agreements for 13 of the hotels, with sale proceeds earmarked to repay acquisition-related debt and support the group’s investment-grade leverage profile. Separately, the company cut its 2025 Adjusted EBITDA outlook for Playa by $10 million and guided Hyatt’s full-year Adjusted EBITDA to the low end of its prior range due to property closures and demand disruption in Jamaica following Hurricane Melissa in October 2025, highlighting both operational resilience and near-term earnings pressure in a key Caribbean market.

The most recent analyst rating on (H) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.

Hyatt Hotels Issues $400M in Senior Notes

On November 26, 2025, Hyatt Hotels Corporation issued $400 million in 5.400% Senior Notes due 2035, generating approximately $396.2 million in net proceeds. The company plans to use these funds to repay its 4.850% notes due in 2026 and for general corporate purposes. This move is part of Hyatt’s financial strategy to manage its debt obligations and optimize its capital structure, potentially impacting its financial stability and market positioning.

The most recent analyst rating on (H) stock is a Buy with a $178.00 price target. To see the full list of analyst forecasts on Hyatt Hotels stock, see the H Stock Forecast page.