In this article, we will discuss different segments that Hyatt (H) operates and then identify its competitors. However, some of Hyatt’s competitors—Hilton (HLT), Marriott (MAR), Wyndham (WYN), and Starwood (HOT)—compete in all the segments: Hotels and Resorts, Residential Units, and Vacation Ownership Units.
Business segments and competition
Today, Hyatt operates under three business segments:
Hotels and all-inclusive resorts: Hyatt operates hotels and resorts by management model, franchise model, or owned and leased model. The company operates nine brands. Marriott (MAR), Hilton (HLT), and Starwood (HOT) are some of its major competitors in the hotel segment.
Residential units: The company licenses trademarks to be used for residential units. Hyatt owns one of these residential units. Marriott (MAR) and Starwood (HOT) are some of the major competitors in the residential units segment.
Vacation ownership units: Hyatt previously developed, operated, marketed, and sold timeshare intervals and fractional ownerships under the Hyatt Residence Club brand name. The company sold off its vacation ownership business to ILG in October 2014. Hyatt has a master licensing agreement in which it receives a license fee to allow ILG to use its trademarks. The company competes with Marriott (MAR), Starwood (HOT), and Wyndham (WYN) in the timeshare segment.
Investors can gain exposure to the lodging sector by investing in the iShares US Consumer Services ETF (IYC). IYC invests 11.3% in the lodging sector.