Hyatt Hotels Corporation (H) | Investment Case

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 positively driven by several factors. The company's robust development pipeline and rising RevPAR (Revenue Per Available Room) signal ongoing growth momentum. Additionally, Hyatt's Q3 earnings call revealed a strong focus on fee-based growth and margins. The company also announced a public offering of $400,000,000 aggregate principal amount of senior notes due 2035, which will be used to repay existing debt. Furthermore, World of Hyatt's exclusive cyber offer with up to 30% savings for members in the Americas is expected to drive bookings and revenue. Institutional investors, such as Allworth Financial LP, have also increased their stakes in the company, with a 350.5% boost in the second quarter.

1.c. Company Highlights

Last Price	156
Change Percentage	-0.42%
Open	156.9
Previous Close	156.66
Market Cap ( Millions)	14815
Volume	549973
Year High	168.1
Year Low	102.43
M A 50	149.59
M A 200	137.39

FCF Yield	0.38%
Dividend Yield	0.38%
ROE	-2.50%
Debt / Equity	180.83%
Net Debt / EBIDTA	712.85%
Price To Book	4.28
Price Earnings Ratio	-169.3
Price To FCF	259.91
Price To sales	3.46
EV / EBITDA	25.98

2. Hyatt's Q3 2025 Earnings: A Mixed Bag

Hyatt reported adjusted EBITDA of $291 million in the third quarter, in line with expectations. However, the company's EPS came out at '-0.3' relative to estimates at '0.49', indicating a significant miss. System-wide RevPAR growth was 0.3%, impacted by a holiday shift and lapping one-time events last year. Net package RevPAR at all-inclusive properties grew 7.6%, highlighting strong demand for leisure travel.

Publication Date: Nov -09

                                    📋 Highlights
                                    Net Rooms Growth::
                                                Achieved 12% net rooms growth (7% excluding acquisitions), with 38 hotels planned to open in Q4 and a 6-7% projected net rooms growth in 2026.
RevPAR Performance::
                                                System-wide RevPAR grew 0.3%, driven by luxury brands (+6% growth) and net package RevPAR at all-inclusive properties rising 7.6%.
Capital Returns::
                                                Returned $350M to shareholders in 2025 via share repurchases ($30M in Q3) and dividends, with $792M remaining under repurchase authorization.
Loyalty Program Growth::
                                                World of Hyatt membership increased nearly 30% annually since 2017, with 40% more members per hotel than the closest competitor.
Adjusted EBITDA Outlook::
                                                Full-year adjusted EBITDA expected to grow 8% to $1.09B–$1.11B, with Q4 growth of 9% at the midpoint and $475M–$525M in adjusted free cash flow.

                                

Revenue Growth and Margin Analysis

Hyatt's revenue growth was sluggish in Q3, with system-wide RevPAR growth of 0.3%. However, the company's luxury brands continued to generate high RevPAR growth, with leisure transient RevPAR increasing 1.6% to last year. The company's all-inclusive properties also performed well, with net package RevPAR growing 7.6%. Adjusted EBITDA margin was in line with expectations, but the company's EPS miss indicates that costs were not well-managed.

Business Outlook and Guidance

Hyatt expects full-service hotels in the United States to deliver higher growth in the fourth quarter compared to select service hotels due to easier group comparisons. The company anticipates its luxury portfolio and international markets to perform well in the fourth quarter, supported by strong demand trends and high-end consumer resilience. For the full year, Hyatt expects RevPAR growth between 2% to 2.5%, implying RevPAR growth in the fourth quarter between 0.5% and 2.5%.

Valuation and Growth Prospects

Hyatt's valuation metrics indicate that the company is trading at a premium. The P/S Ratio is 2.83, and the EV/EBITDA is 44.93, indicating that the company's growth prospects are already priced in. Analysts estimate next year's revenue growth at 3.6%. As Mark Hoplamazian discussed, Hyatt has a robust pipeline, with 38 hotels planned to open in the fourth quarter, and is on track to more than double its core organic growth rate from 2024 to 2025.

Capital Allocation and Shareholder Returns

Hyatt is committed to deleveraging and reaching investment-grade leverage by the end of 2027. The company will continue to deliver returns to shareholders when it has excess cash. Hyatt has consistently prioritized investing in its business and returning capital to shareholders through share repurchases and dividends, having repurchased stock every year for the last 12 years.

3. NewsRoom

Hyatt Advances Luxury Brand Focus With New Leadership and Planned Global Expansion in 2026

Dec -03

Source: businesswire.com

KKR Consortium Sold Luxury Hyatt Hotel in Tokyo for Over $800 Million, Sources Say

Nov -25

Source: wsj.com

Hyatt Hotels Corporation $H Position Raised by Allworth Financial LP

Nov -23

Source: defenseworld.net

Hydro One (TSE:H) Sets New 1-Year High – Should You Buy?

Nov -23

Source: defenseworld.net

Hyatt Announces Pricing of Public Offering of Senior Notes

Nov -18

Source: businesswire.com

Retreat Spa at Hyatt Regency Vancouver Recognized for Outstanding Guest Reviews

Nov -17

Source: globenewswire.com

Mason Hawkins' Strategic Moves: Rayonier Inc. Takes Center Stage with 6.09% Portfolio Share

Nov -14

Source: gurufocus.com

Hydro One Limited (H:CA) Q3 2025 Earnings Call Transcript

Nov -13

Source: seekingalpha.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

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

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Travel + Leisure

A-Score: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

Allison Transmission Holdings

A-Score: 5.6/10

Value: 5.8

Growth: 7.4

Quality: 7.5

Yield: 2.0

Momentum: 3.0

Volatility: 8.0

1-Year Total Return ->

Wyndham Hotels

A-Score: 5.3/10

Value: 3.1

Growth: 5.0

Quality: 6.9

Yield: 4.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

Choice Hotels

A-Score: 5.1/10

Value: 5.8

Growth: 6.3

Quality: 6.4

Yield: 1.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

KB Home

A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Hyatt Hotels

A-Score: 4.0/10

Value: 1.5

Growth: 7.3

Quality: 4.2

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

21.87%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.84%

Hyatt Hotels Corporation - US4485791028

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on H

1.c. Company Highlights

Expensive

Less Volatile

Stable Momentum

Earnings Miss

Revenues Beats

Strong Momentum

Earnings Beats

Revenues Miss

Average Yield

Better Quality

Average Quality

Medium Volatility

Average Growth

Higher Growth

2. Hyatt's Q3 2025 Earnings: A Mixed Bag

Revenue Growth and Margin Analysis

Business Outlook and Guidance

Valuation and Growth Prospects

Capital Allocation and Shareholder Returns

3. NewsRoom

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%

Apple Leisure Group

Expected Growth: 10.27%

Owned and Leased Hotels

Expected Growth: 5.17%

ASPAC Management and Franchising

Expected Growth: 9.27%

EAME Management and Franchising

Expected Growth: 4.85%

Corporate and Other

Expected Growth: 4.65%

7. Detailed Products

Luxury Hotels

Full-Service Hotels

Select-Service Hotels

Extended-Stay Hotels

Vacation Ownership

Meetings and Events

Loyalty Program

8. Hyatt Hotels Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.e Scoring ^Insights

12.f DCF ^BETA