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Sam Matthews

Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.

More From Sam Matthews

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    Company & Industry Overviews

    Understanding Marriott International’s Valuation Multiple

    In fiscal 2014, Marriott had forward EV-to-EBITDA multiple of 15.3. It was trading at 11.2 as of January 1, 2016, which was the highest among peers.

    By Sam Matthews
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    Company & Industry Overviews

    Big Hotels on the Block: Sizing up Wyndham Worldwide’s Competitors

    Since 2010, Wyndham’s stock has outperformed all its peers, growing by over 270%. In that time, Marriot grew by ~176%, Starwood by 102%, and Hyatt by 67%.

    By Sam Matthews
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    Company & Industry Overviews

    Why Did Hyatt Sell Its Vacation Ownership Segment?

    Hyatt is focusing on increasing its presence to under-penetrated markets. The company believes that its presence in emerging markets such as India and China is essential for its growth.

    By Sam Matthews
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    Company & Industry Overviews

    Spirit Airlines: An Introduction to a Low-Cost Pioneer

    Spirit Airlines (SAVE) is headquartered in Miramar, Florida. It’s a pioneer of ultra-low-cost carrier or ULCC airlines.

    By Sam Matthews
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    Macroeconomic Analysis

    Understanding the Hotel Industry Valuation Multiple

    The forward EV-to-EBITDA multiple for the hotel industry currently stands at 9. It has declined from 13.1, which was recorded at the beginning of 2015.

    By Sam Matthews
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    Company & Industry Overviews

    What You Ought to Know about Marriott International’s Asset Utilization

    Marriott has one of the lowest asset bases among its industry peers, having reduced its PPE-to-total-assets ratio from 24% in 2012 to 21.2% in 2014.

    By Sam Matthews
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    Company & Industry Overviews

    Marriott International’s Expansion in the Franchise Model Is Bearing Fruit

    Marriott’s operating margin increased from 5.9% in 2010 to 8.4% in 2014. Its operating income grew from $695 million in 2010 to $1,159 million in 2014.

    By Sam Matthews
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    Company & Industry Overviews

    Interpreting Marriott International’s Growing Reliance on Debt

    Marriott International’s total debt has increased from approximately $7.4 billion in 2010 to about $9.1 billion in 2014.

    By Sam Matthews
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    Macroeconomic Analysis

    How Could Falling Consumer Confidence Affect the Hotel Industry?

    The Conference Board Consumer Confidence Index as of November 2015 was 90.4 compared to 102.6 in September 2015.

    By Sam Matthews
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    Macroeconomic Analysis

    Growth in Demand, Limited Supply Drove US Hotel Occupancy Rates

    Occupancy rates, which measure hotel capacity utilization, saw unprecedented growth in 2015. November 2015 occupancy rates saw a year-over-year growth rate of 3.2%.

    By Sam Matthews
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    Macroeconomic Analysis

    Real, Nominal ADR Affect the US Hotel Sector’s Operating Income

    ADR, or average daily rate, measures the average room price paid in the market. Hotels saw unprecedented occupancy levels in 2015 driven by strong demand.

    By Sam Matthews
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    Macroeconomic Analysis

    An Investor’s Introduction to the US Hotel Industry

    Hotel investors can use the indicators discussed in this series to gauge the industry’s general trends. Leisure travelers make up ~60% of the total hotel room sales, and business travelers account for 40% of total sales.

    By Sam Matthews
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    Company & Industry Overviews

    Understanding Cost Reimbursements as a Key Part of Marriott International’s Revenues

    Cost reimbursements make up a major component of Marriott’s revenues and mostly consist of salaries paid to employees working in Marriott-managed hotels.

    By Sam Matthews
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    Company & Industry Overviews

    Why Marriott Relies Heavily on Its Franchise Model for Growth

    Marriott now focuses on capital-light segments like franchised properties. Its fee incomes rose from $1.2 billion to $1.7 billion between 2006–2014.

    By Sam Matthews
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    Company & Industry Overviews

    Industry-Wide Demand Growth Drives Marriott International’s RevPAR

    Marriott International saw strong increases in RevPAR—from $87 to $110—between 2010 and 2014.

    By Sam Matthews
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    Company & Industry Overviews

    Just How Much Does Marriott International Stand to Benefit from the Starwood Acquisition?

    Marriott’s acquisition of Starwood will likely help Marriott double its international portfolio while diversifying its global presence.

    By Sam Matthews
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    Company & Industry Overviews

    Acquisitions and Joint Ventures Drive Marriott’s International Expansions

    Marriott has been able to expand its international business by both acquiring and creating brands that enable it to enter new markets and market segments.

    By Sam Matthews
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    Company & Industry Overviews

    Marriott International in the Eyes of Customers: Outside Looking In

    In 2015, Marriott topped the ACSI survey with a score of 80. It also topped the survey in 2014 and 2013, with scores of 83 and 81, respectively.

    By Sam Matthews
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    Company & Industry Overviews

    Marriott International’s Business Model by Service Category: Key Investor Takeaways

    At the end of 2014, Marriott had around 2,882 franchised hotel properties, with 388,670 rooms under the franchise model.

    By Sam Matthews
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    Company & Industry Overviews

    Running down Marriott International’s Big Brands

    Marriott has 20 brands under its management, including luxury, lifestyle, and signature brands. Only 39% of its hotels in North America are full-service.

    By Sam Matthews
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    Company & Industry Overviews

    Sizing up Marriott International’s Competition in a Tough Industry

    Marriott operates hotels under not just under the management model but also under the franchise model and the owned and leased model.

    By Sam Matthews
  • Introducing Marriott International: Your Key Company Overview
    Company & Industry Overviews

    Introducing Marriott International: Your Key Company Overview

    Marriott International is known for its wide range of budget and luxury hotels. Its acquisition of Starwood will make it the world’s largest hotel chain.

    By Sam Matthews
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    Company & Industry Overviews

    Investor Essentials: Understanding Hyatt’s Valuation Multiple

    Hyatt’s EV/EBITDA has moved in line with the median valuation multiple of its peers. Hyatt, with rare exceptions, has always traded at a discount to the median valuation multiple of its peers.

    By Sam Matthews
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    Company & Industry Overviews

    Why Hyatt Has High Liquid Assets Compared to Its Peers

    As of December 31, 2014, Hyatt’s cash, cash equivalents, and marketable securities as a percentage of total assets is one of the highest among its peers, at 10%.

    By Sam Matthews
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    Company & Industry Overviews

    Asset Utilization by Hyatt Hotels

    Hyatt had the lowest return on assets (or ROA) ratio among its peers at 4.6% for fiscal 2014 due to lower profits generated from its assets.

    By Sam Matthews
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    Company & Industry Overviews

    Profitability Margins Grew for Hyatt Hotels

    Operating margins for Hyatt Hotel (H) increased from 1.4% in 2010 to 6.3% in 2014. The growth in margins was largely driven by steady growth in revenue and declining expenses from the owned and leased hotels segment.

    By Sam Matthews
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    Company & Industry Overviews

    Why Hyatt Has the Highest ADR and Occupancy Rate Among Its Peers

    At 76.2%, Hyatt Hotels (H) had one of the highest occupancy rates among its peers for its owned and leased hotels in 2014.

    By Sam Matthews
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    Company & Industry Overviews

    Hyatt’s Retail Investors Have Skewed Voting Power

    As of January 31, 2015, Hyatt had 36.8 million Class A shares entitled to one vote and 111.4 million Class B shares entitled to ten votes.

    By Sam Matthews
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    Company & Industry Overviews

    How Does Hyatt Make Money from Its Hotels?

    Hyatt (H) operates its hotels and other business segments under three models: franchise, management, and ownership models.

    By Sam Matthews
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    Company & Industry Overviews

    Introduction to Hyatt’s Select Service Brands and Other Brands

    Hotels that offer accommodation with limited services and amenities are called select service hotels. Hyatt (H) operates about 37,500 rooms and two brands under this segment.

    By Sam Matthews
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    Company & Industry Overviews

    An Overview of Hyatt Hotels’ Competition

    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.

    By Sam Matthews
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    Company & Industry Overviews

    The Investor’s Introduction to Hyatt Hotels

    A global hospitality group, Hyatt (H) operates industry-leading brands such as Park Hyatt, Andaz, Hyatt, Grand Hyatt, and Hyatt Regency. As of December 31, 2014, the company operated 587 properties with more than 155,000 rooms.

    By Sam Matthews
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    Company & Industry Overviews

    Why Are Wyndham Worldwide’s Profitability Margins Declining?

    Wyndham’s operating margins declined from 18.6% in 2010 to 17.6% in 2014 due to growing marketing and reservation expenses.

    By Sam Matthews
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    Company & Industry Overviews

    What’s Driving the Revenues of Wyndham Worldwide’s Vacation Ownership Segment?

    Vacation unit sales rely on disposable income available to customers. The stable US economy and growing household incomes have positive impacts on Wyndham.

    By Sam Matthews
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    Company & Industry Overviews

    Measuring Wyndham Worldwide’s Exchange and Rental Business—The World’s Largest

    Wyndham Worldwide’s Wyndham Exchange and Rental segment is its most geographically diversified business segment, with a presence in over 100 countries.

    By Sam Matthews
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    Company & Industry Overviews

    What Factors Keep Driving Wyndham Hotel Group’s Revenues?

    Wyndham’s ADR growth in 2010–2014 was driven by a lack of supply growth in the economy segment and by an increase in domestic travel.

    By Sam Matthews
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    Company & Industry Overviews

    How Wyndham Uses Technology to Offer Greater Value to Its Clients

    Wyndham invests in technology to improve its e-commerce capabilities and marketing abilities and to help it differentiate itself from competitors.

    By Sam Matthews
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    Company & Industry Overviews

    Interpreting Wyndham Worldwide’s Rental and Exchange Key Revenue Drivers

    We can measure Wyndham’s rental and exchange business by average number of members, revenue per member, rental transactions, and average net price.

    By Sam Matthews
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    Company & Industry Overviews

    A Rundown of Wyndham Worldwide’s Wyndham Hotel Group Segment

    Wyndham Hotel Group provides services under a franchise model but also offers professional oversight and operations support under a management model.

    By Sam Matthews
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    Company & Industry Overviews

    Gauging Wyndham Worldwide’s Low ADR and Occupancy Rate

    Wyndham had the lowest occupancy rate among peers in fiscal 2014. Its larger presence in the economy and midscale segments accounts for the difference.

    By Sam Matthews
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    Company & Industry Overviews

    Introducing Wyndham Worldwide, a Hotel Super Power

    Wyndham Worldwide is considered the world’s largest hotel franchiser. It owns the world’s largest vacation ownership and exchange network.

    By Sam Matthews
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    Company & Industry Overviews

    Spirit Airlines’ Valuation Ratio: How Does It Stack Up?

    Spirit and its competitors have seen their EV/EBITDA decrease in the last six months due to the fear of a large increase in available seat miles.

    By Sam Matthews
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    Company & Industry Overviews

    Comparing Spirit Airlines’ Profitability to Industry Peers

    Spirit has one of the highest operating margins in United States. In 2Q15 the airlines recorded an operating margin of 22.1%.

    By Sam Matthews
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    Company & Industry Overviews

    Alaska Airlines’ Keys to High Customer Satisfaction

    For the seventh consecutive year, Alaska Airlines held the top spot in Customer Satisfaction among the Traditional Network Carriers survey conducted by J.D. Power.

    By Sam Matthews
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    Company & Industry Overviews

    How Does Alaska Airlines Control Its Non-Fuel Expenses?

    Alaska Airlines’ operating expenses per available seat mile decreased from 13.1 cents in 2011 to 12.2 cents in 2014. The major driver for this fall in CASM is lower oil prices.

    By Sam Matthews
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    Company & Industry Overviews

    How Does Spirit Airlines Manage Its Low-Cost Structure?

    Spirit (SAVE) ranks first in profitability among seven airlines in the United States. The main driver for this ranking comes from its exceptional ability to manage costs.

    By Sam Matthews
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    Company & Industry Overviews

    Understanding Spirit Airlines’ Low-Cost Business Model

    Spirit Airlines (SAVE) follows a simple business model of reducing base airfares as much as possible. All its other services are charged separately.

    By Sam Matthews
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    Earnings Report

    Strategic Partnership of Delta Air Lines with China Eastern

    Delta Air Lines purchased a 3.5% stake in the state-owned Chinese Eastern Airlines for $450 million in 3Q15.

    By Sam Matthews
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    Earnings Report

    Strong 3Q15 Performance for Delta Air Lines

    Delta Air Lines (DAL) reported its 3Q15 earnings on October 14, 2015. The company’s top line declined by 0.6% in 3Q15 over 3Q14 to reach $11.1 billion.

    By Sam Matthews
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