Hyatt (H) stock has had a volatile ride so far in 2017. After falling 1.0% in January and 6.2% in February, it rose 5.1% in March, 5.6% in April, and 3.8% in May. It fell again by 2.6% in June, and has fallen 2.8% so far in July.
As of July 26, 2017, Hyatt stock had lost 1.2% YTD (year-to-date), underperforming all peers. Hilton Worldwide Holdings (HLT) stock has gained 7.7% in the same period. Marriott International (MAR) stock has gained ~24.6% YTD, due to the acquisition of Starwood. Intercontinental Hotel Group has risen 23.2%, and Wyndham Worldwide (WYN) has outperformed all peers, gaining 35.7%.
As hotels are a discretionary expenditure, we compare hotel stock performance with that of the consumer discretionary sector. The Consumer Discretionary Select Sector SPDR ETF (XLY) is a good way to track the sector. It had gained 12.3% YTD as of July 26, 2017. The broader market, tracked by the SPDR S&P 500 ETF (SPY), had risen 10.7%.
In this series, we’ll assess Hyatt’s performance based on key metrics, look at analyst estimates for Hyatt’s 2Q17 performance, and then wrap up the series with a discussion on the stock’s valuation. Hyatt will report its 2Q17 earnings on August 3, 2017.