What Analysts Expect for Hyatt’s Revenue Growth in 2017


Jul. 28 2017, Updated 9:09 a.m. ET

Analyst estimates

In 2Q17, analysts expect Hyatt’s revenue to grow by 3.9% YoY (year-over-year) to $1.2 billion. Sales growth is expected to increase for the rest of the year. Sales are expected to grow 5.4% YoY to $1.1 billion in 3Q17, and 5.5% YoY to $1.2 billion in 4Q17.

Hyatt is expected to see revenue growth of 6.0% YoY to $4.7 billion in 2017, reaching levels seen in 2013. Hyatt reported revenue growth of 6% YoY in 2013, 5.5% in 2014, and -2% in 2015. It then rose to 2.3% in 2016. Revenue growth is expected to fall to 3.9% YoY in 2018, to $4.9 billion.

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Increasing travel demand helps

The global economy is expected to continue growing over the long term, which bodes well for the hotel industry, as economic growth is expected to bring prosperity and increase disposable income.

Analysts expect a higher share of this disposable income to go towards travel. People are traveling more than they used to, and the trend is expected to keep moving higher, meaning higher bookings for hotels.

Outlook for 2017

Hyatt CEO Mark Hoplamazian believes that the company is well poised for growth in 2017. Its strong hotel pipeline will help the company achieve this growth. Most of the hotels are in new market segments, which Hyatt believes will be crucial to its future growth.

Investors can gain exposure to the hotel sector by investing in the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ), which invests 2.6% of its portfolio in Hyatt and 2.9% in Wyndham Worldwide (WYN). However, it has no exposure to Marriott International (MAR) or Hilton Worldwide Holdings (HLT).


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