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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on H

Hyatt Hotels Corporation's recent performance was driven by strong Q4 2025 earnings, which surpassed estimates with $1.33 per share, significantly beating the Zacks Consensus Estimate of $0.29 per share. The company's results reflect higher RevPAR and rising fees, signaling steady growth momentum. A strong development pipeline and increased investor confidence, with firms like Assetmark Inc. and Universal Beteiligungs und Servicegesellschaft mbH raising their holdings, further contributed to the positive trend.

1.c. Company Highlights

2. Hyatt Hotels Corporation Delivers Strong Q4 2025 Results

Hyatt Hotels Corporation reported a robust fourth quarter 2025, with system-wide RevPAR growth of 4% driven by the continued strength of its luxury brands. The company's revenue performance was impressive, with gross fees increasing approximately 5% to $307 million in the fourth quarter. For the full year, gross fees rose 9% to $1,198 million. The company's adjusted EPS came in at $1.33, significantly beating analyst estimates of $0.29. The strong earnings report was a testament to the company's diversified business model and its ability to navigate a dynamic macro environment.

Publication Date: Feb -15

📋 Highlights
  • RevPAR Growth:: Q4 system-wide RevPAR increased 4% YoY, with luxury brands driving performance (leisure transient +6%, group +3%).
  • Loyalty Program Expansion:: World of Hyatt membership reached 63M, up 19% YoY, accounting for ~50% of occupied rooms globally in 2025.
  • Development Momentum:: Net rooms growth of 7.3% in 2025, surpassing 1,500 open hotels, including new openings like Parquet Cabo del Sol and Andaz One Bangkok.
  • Gross Fees Growth:: Q4 gross fees hit $307M (+5% YoY), with full-year fees reaching $1.198B (+9% YoY), driven by organic growth (8% CAGR since 2017).
  • 2026 Guidance:: Projects 1-3% RevPAR growth (luxury leading), 6-7% net rooms growth, and gross fees of $1.295B–$1.335B (+8–11%), with adjusted EBITDA of $1.155B–$1.205B and free cash flow of $580M–$630M (+20–30%).

Segment Performance

The company's leisure transient RevPAR increased approximately 6% year-over-year, while business transient RevPAR declined 1% in the fourth quarter. Group RevPAR, however, increased 3% compared to the same period last year. The World of Hyatt loyalty program continued to grow in scale and significance, with over 63 million members, a 19% increase from the end of 2024. World of Hyatt members accounted for nearly half of total occupied hotel rooms across the globe in 2025.

Growth Prospects

Hyatt Hotels Corporation is well-positioned for growth, with a strong development pipeline. The company achieved industry-leading growth for the ninth consecutive year, with net rooms growth of 7.3% in 2025. It expects net rooms growth of 6% to 7% in 2026, driven by its new brands, including Hyatt Select. The company's guidance for full-year system-wide RevPAR growth is between 1% to 3%, with higher growth expected in international markets compared to the United States.

Valuation

Hyatt Hotels Corporation's valuation metrics indicate a premium valuation. The company's P/E Ratio is -302.15, P/B Ratio is 24.55, and P/S Ratio is 2.97. The EV/EBITDA ratio is 30.92, suggesting that the company's earnings growth is already priced in. However, with an expected revenue growth rate of 6.8% next year, the company's valuation may be justified. The ROE is -1.87%, indicating that the company's profitability is a concern, but the ROIC is 10.39%, suggesting that the company's invested capital is generating returns.

Outlook

The company's guidance for 2026 is positive, with expected gross fee growth between 8% to 11% and adjusted EBITDA growth of 13% to 17%. The company's adjusted free cash flow is expected to increase 20% to 30%. With a strong development pipeline and a diversified business model, Hyatt Hotels Corporation is well-positioned to continue its growth trajectory. The company's plans to deleverage and return excess cash to shareholders are also expected to enhance shareholder value.

3. NewsRoom

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HYATT HOTELS CORPORATION ALERT: Scott+Scott Attorneys at Law LLP Investigates Hyatt Hotels Corporation's Directors and Officers for Breach of Fiduciary Duties – H

Feb -20

Source: businesswire.com

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Baron Focused Growth Fund Q4 2025 Performance Insights: Portfolio Drivers & Decisions

Feb -20

Source: seekingalpha.com

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Hyatt to Present at Upcoming Investor Conferences

Feb -19

Source: businesswire.com

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Hyatt Executive Chairman Thomas Pritzker steps down over Epstein ties

Feb -17

Source: fastcompany.com

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First Look: WBD waiver; Ackman's Meta bet; Ford-China JV

Feb -17

Source: gurufocus.com

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Here are the executives who have departed in wake of the Epstein files. Hyatt's Pritzker is the latest.

Feb -17

Source: marketwatch.com

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Baron Partners Fund Q4 2025 Contributors And Detractors

Feb -17

Source: seekingalpha.com

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Hyatt Chairman Pritzker leaves board over Epstein ties

Feb -16

Source: cnbc.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.28%)

6. Segments

Americas Management and Franchising

Expected Growth: 4.65%

Americas Management and Franchising segment of Hyatt Hotels Corporation has achieved a growth rate of 4.65%, driven by increasing demand for luxury travel, strategic hotel openings, and effective cost management. Additionally, the segment has benefited from the growing popularity of Hyatt's loyalty program, World of Hyatt, and the expansion of its franchise business model.

Apple Leisure Group

Expected Growth: 10.27%

Apple Leisure Group's 10.27% growth is driven by increasing demand for luxury travel, strategic expansion into new markets, and effective cost management. Additionally, Hyatt's strong brand reputation, loyalty programs, and investments in digital platforms have contributed to the segment's growth.

Owned and Leased Hotels

Expected Growth: 5.17%

Hyatt's Owned and Leased Hotels segment growth of 5.17% is driven by increasing RevPAR (Revenue per Available Room) due to strong demand, effective pricing strategies, and expansion in high-growth markets. Additionally, strategic acquisitions, renovations, and rebranding efforts have enhanced the portfolio's quality and competitiveness, attracting more guests and driving revenue growth.

ASPAC Management and Franchising

Expected Growth: 9.27%

ASPAC Management and Franchising's 9.27% growth is driven by increasing demand for luxury travel in Asia, expansion into new markets, and strategic partnerships. Hyatt's strong brand reputation, efficient operations, and focus on digital transformation also contribute to growth. Additionally, the segment benefits from a growing middle class in Asia, leading to increased demand for upscale hospitality services.

EAME Management and Franchising

Expected Growth: 4.85%

EAME Management and Franchising's 4.85% growth is driven by increasing demand for luxury travel, strategic hotel openings in key European cities, and effective cost management. Additionally, Hyatt's strong brand reputation, growing RevPAR, and expanding presence in the region contribute to this growth.

Corporate and Other

Expected Growth: 4.65%

Hyatt's Corporate and Other segment growth of 4.65% is driven by increased demand for corporate events and meetings, expansion of the company's loyalty program, and strategic partnerships. Additionally, the segment benefits from Hyatt's cost savings initiatives and investments in digital platforms, enhancing the customer experience and driving revenue growth.

7. Detailed Products

Luxury Hotels

High-end hotels offering luxurious amenities and services, often located in prime city centers or resort destinations.

Full-Service Hotels

Hotels offering a range of amenities, including restaurants, fitness centers, and meeting spaces, catering to both business and leisure travelers.

Select-Service Hotels

Hotels providing essential amenities, such as free breakfast and fitness centers, at an affordable price point, ideal for short stays.

Extended-Stay Hotels

Hotels offering spacious suites with kitchenettes, designed for longer stays, often preferred by business travelers and relocation guests.

Vacation Ownership

Timeshare properties offering fractional ownership, providing owners with access to a network of resorts and vacation experiences.

Meetings and Events

Customized event planning and meeting spaces, catering to corporate events, weddings, and social gatherings.

Loyalty Program

Reward program offering points and benefits to frequent guests, redeemable across Hyatt's global portfolio.

8. Hyatt Hotels Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Hyatt Hotels Corporation faces moderate threat from substitutes, as customers have various options for accommodations, including Airbnb, vacation rentals, and other hotels. However, Hyatt's loyalty program and brand recognition help to mitigate this threat.

Bargaining Power Of Customers

Hyatt Hotels Corporation has a large customer base, but individual customers have limited bargaining power. The company's loyalty program and rewards help to retain customers, reducing their bargaining power.

Bargaining Power Of Suppliers

Hyatt Hotels Corporation relies on various suppliers for goods and services, including food and beverage providers, linen suppliers, and maintenance contractors. While suppliers have some bargaining power, Hyatt's scale and negotiating power help to mitigate this threat.

Threat Of New Entrants

Entering the hospitality industry requires significant capital investment and regulatory compliance. While new entrants may emerge, Hyatt Hotels Corporation's established brand, scale, and resources create barriers to entry.

Intensity Of Rivalry

The hospitality industry is highly competitive, with many established players and new entrants vying for market share. Hyatt Hotels Corporation faces intense competition from Marriott, Hilton, and other major hotel chains, as well as from alternative accommodations like Airbnb.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.45%
Debt Cost 5.85%
Equity Weight 53.55%
Equity Cost 11.43%
WACC 8.84%
Leverage 86.73%

11. Quality Control: Hyatt Hotels Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

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Growth: 7.4

Quality: 7.4

Yield: 2.0

Momentum: 2.0

Volatility: 7.7

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KB Home

A-Score: 4.9/10

Value: 7.8

Growth: 4.6

Quality: 5.3

Yield: 3.0

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Wyndham Hotels

A-Score: 4.7/10

Value: 3.1

Growth: 4.9

Quality: 6.9

Yield: 4.0

Momentum: 2.0

Volatility: 7.3

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Choice Hotels

A-Score: 4.5/10

Value: 4.0

Growth: 6.3

Quality: 6.5

Yield: 1.0

Momentum: 1.0

Volatility: 8.3

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Hyatt Hotels

A-Score: 4.4/10

Value: 3.3

Growth: 7.3

Quality: 2.9

Yield: 0.0

Momentum: 6.0

Volatility: 6.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

171.84$

Current Price

171.84$

Potential

-0.00%

Expected Cash-Flows