Key points
- Hyatt Hotels operates more than 1,300 hotels and resorts in more than 77 countries.
- Hyatt Hotels expanded its pipeline to 127,000 new rooms, or 40% of existing rooms, in 2023.
- Hyatt Hotels plans to sell $2 billion in properties in 2024.
- 5 stocks we like best from Hyatt Hotels
Global hospitality company Hyatt Hotels Co. NYSE: H stocks are hitting all-time highs riding the travel boom, with shares up 21% year to date (YTD). Hyatt operates more than 1,300 hotels and properties in 77 countries. Their hotels and resorts range from all-inclusive vacation resorts to full-service, luxury, upscale brands like Park Hyatt and Unbound Collection. Although not as massive as Marriott International Inc. NASDAQ: MARCH, Hilton Worldwide Holdings Inc. New York Stock Exchange: HLTAND InterContinental Hotels Group PLC New York Stock Exchange: IHGHyatt is an agile, asset-light player in the consumer discretionary sector.
Big growth plans
While business is strong thanks to the ongoing travel boom, the growth prospects have investors and analysts salivating. The company announced in January 2024 that 2023 was a record year for deal signings. It brought the number of new rooms worldwide to 127,000, or nearly 40% of existing rooms.
Brand portfolio
The Grand Hyatt and Hyatt Regency brands are popular with business travelers and cater to large conventions. These hotels offer numerous amenities and convenient locations with business and meeting facilities. Hyatt House offers extended-stay hotels and apartment-style suites. Park Hyatt offers luxury accommodations located in prime city locations with world-class amenities.
Its Unbound Collection features independent hotels with a strong sense of place that appeal to sophisticated travelers seeking authentic cultural experiences. SLH is an independent collection of boutique hotels characterized by intimate settings and personalized service, serving high-end leisure travelers.
Strong near 2023
Hyatt Hotels reported fourth-quarter 2023 earnings per share of 64 cents, beating analysts’ expectations of 38 cents by 26 cents. Revenue was $1.66 billion, beating consensus analyst estimates of $1.61 billion. Adjusted EBITDA was $241 million and $1.03 billion for full-year 2023, which was higher than forecast for the prior full year.
Comparable system-wide revenue per available room (RevPAR) increased 9.1% year-over-year in the fourth quarter of 2023 and 17% for full-year 2023. Full-year net room growth is was 5.9% on an annual basis. The company ended the year with total debt of $3.05 billion and total liquidity of $2.4 billion with $896 million in cash and cash equivalents. Check the heat map of the sector on MarketBeat.
Revenue growth by segment
A record $256 million in management, franchising, licensing and other fees was generated in the fourth quarter of 2023. The company repurchased 4.1 million shares of Class A common stock for $453 million in full-year 2023. The Owned and Leased Hotels segment generated $90 million, with growth driven by the return of group demand and by higher rate growth, with operating margins up 240 basis points year over year.
The Americas Manage and Franchise segment reported the highest revenues due to improved group and corporate results with resilient demand for leisure travel. Apple Leisure Group, acquired in 2022 to expand its portfolio of all-inclusive resorts, saw adjusted EBITDA increase 33% year over year.
Real estate transactions
Hyatt Hotels saw 29 new hotels, including 9,648 rooms, add to its portfolio in the quarter. A total of 101 new hotels with 23,965 rooms joined Hyatt’s portfolio in full-year 2023. As of December 31, 2023, Hyatt Hotels had a pipeline of management or franchise agreements signed for nearly 650 hotels with 127,000 rooms. The company sold Hyatt Regency Aruba Report and Casino for $230 million and entered into a long-term management agreement. The company expects to sell $2 billion in real estate, net of acquisitions, in 2024. Get AI-powered insights on MarketBeat.
Forecast 2024
Hyatt Hotels expects full-year 2024 RevPAR growth of 3% to 5%. Net room growth is expected to be between 5.5% and 6% year over year. Net profit is expected to be around $560 million. Management, franchising, licensing and other fees are expected to range between $1.1 billion and $1.13 billion. Planned capital expenditures are approximately $170 million. Free cash flow is expected to be between $625 million and $674 million.
Mark Hoplamazian, CEO of Hyatt Hotels, commented: “The fourth quarter marks the completion of a transformational year and demonstrates progress toward our strategic vision and earnings evolution. RevPAR growth exceeded the high end of our benchmark range and experienced industry-leading net room growth for the seventh consecutive year. This led to a record level of commissions and the highest free cash flow in Hyatt’s history. We returned $500 million to our shareholders and achieved an asset-light earnings mix of approximately 76% for the full year, testament to the successful execution of our strategy.”
Hyatt Hotels analyst ratings and price targets I’m on MarketBeat. You can find the titles of the Hyatt Hotel’s competitors and competitors at MarketBeat Stock Screener.
Daily breakout of the ascending triangle
The daily candlestick chart for H illustrates an ascending triangle breakout pattern. The ascending trend line included higher lows starting at $124.28 on January 16, 2024. The flat upper trend line resistance was at $133.69. Just when a breakout seemed imminent, HLT fell below the ascending trend line with a price gap down on February 13, 2024. However, the stock was able to stage an earnings rally. This resulted in a sharp breakout that continued to push the stock higher for 6 consecutive days to reach new all-time highs of $158.31. The pullback support levels are at $149.22, $136.70, $131.15, and $112.86.
Formed on January 18, 2024, when the daily relative strength index (RSI) rose above the 80 band. The full-year 2023 company update on January 24, 2024, further pushed MAR stock to all-time highs of $243.53 before a pullback began. The pullback support levels are at $228.94, $223.07, $214.35, and $208.43.
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