Hyatt Hotels Corporation
Overview: Hilton Worldwide Holdings Inc.
Hilton Worldwide Holdings is one of the largest hospitality companies in the world. It was founded in 1919 by Conrad Hilton. The company started when he bought his first hotel in Texas.
What Analysts Recommend for Hilton ahead of 1Q17 Results
Hilton’s consensus 12-month target price is $64.6, which indicates a 12.6% return potential over its April 21 closing price of $58.
Which Hotels Will Be Impacted Most Due to the Terror Attack?
Hotels with relatively large exposure to Europe will face the brunt of the terror attack in Brussels. European hotel chain Accor Group has 20 hotels in Brussels.
A Bird’s-Eye View of Wyndham Worldwide’s Largest Segment, Vacation Ownership
Wyndham Worldwide’s Wyndham Vacation Ownership segment is its largest business segment, accounting for 49.9% of its total revenues in 2014.
Analyzing Vail Resorts’ Revenue and Income Growth in Fiscal 1Q16
Vail Resorts (MTN) has a market cap of $4.6 billion. Its YTD (year-to-date) price movement has been rising quarter-over-quarter in calendar 2015.
Why trend in fee income is an important source of revenue
Marriott increased its fee income at a ten-year compound annual growth rate (or CAGR) of 7.6% to $1,543 million in 2013—from $742 million in 2003.
What Analysts Are Recommending for Marriott
Of the 29 analysts tracking Marriott International (MAR), 17.0% (five analysts) have a “strong buy” recommendation for the stock.
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.
How Did Vail Resorts Perform Compared to Its Peers?
The peers of Vail Resorts (MTN) include Hilton Worldwide Holdings, Marriott International, Starwood Hotels & Resorts Worldwide, and Hyatt Hotels.
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.
Hyatt Hotels in 3Q15: Peer Comparisons and Related ETFs
Hyatt Hotels’ peers outperformed the company in 3Q15 based on PS. But Hyatt Hotels was way ahead of its peers and the ETFs that invest in it based on PE.
Why Marriott is slowly expanding in international markets
Marriott has been expanding its presence in the international market. It added new brands in Europe, Asia Pacific, and the Middle East and African regions.
What Are the Conditions to Closing the Starwood-Marriott Merger?
In the Starwood-Marriott merger, the companies have placed a limit on divestitures of $700 million, based on 12x annual EBITDA for any hotels required to be divested.
How Facebook Plans to Monetize Its Messenger App
Facebook (FB) hasn’t given a specific monetization timeline for Messenger. However, we believe that the company is slowly getting closer to monetizing its Messenger app.
Why does Hilton’s valuation look attractive?
Hilton’s valuation hasn’t risen over the last year. Most of the increase in the share price was due to growth in EBITDA.
Hyatt Hotels in 3Q15: Evaluating Revenue and Activity
In 3Q15, Hyatt Hotels had a price movement of $7.1 billion. After its 3Q15 release, its stock fell by 1.31% to close at $49.76 per share on November 3.
Must-know: Marriott International Inc.
Marriott International’s headquarters are in Bethesda, Maryland. The company was founded in 1927 by J. Willard and Alice S. Marriott.
Hilton’s diversified portfolio with 11 world-class brands
Hilton’s goal is to serve any customer, anywhere in the world, for any lodging need that they have. The company has a portfolio of 11 world-class brands. Hilton’s portfolio allows it to accomplish this goal.
Hilton’s hotel room composition by brand and chain scale
Hotel companies, like Hilton, expand their operations based on the demand for accommodations by location. They also expand based on customer preference for the level of service offerings.
Hilton expanded segments with low capital investment
Hilton expanded its operations in segments that require less capital investment. These include the Management and Franchise segment and the Timeshare segment.
Why Marriott’s timeshare segment spun off
Marriott completed the spinoff of its timeshare segment to Marriott Vacations Worldwide Corporation (or MVW) in 2011. MVW is now operating as an independent company.
Why a Strengthening US Dollar Will Hurt the US Hotel Industry
The US dollar’s strength compared to currencies that are widely used in international trade is measured by the Trade Weighted Dollar Index.
Analysts’ Recommendations for Hyatt ahead of 3Q17 Results
Analyst views Of the 22 analysts tracking Hyatt (H), two analysts (9.1%) have a “strong buy” rating on the stock, and three analysts (13.6%) have a “buy” rating. These analysts were surveyed by Reuters. Only one analyst has changed the rating from “strong buy” to “buy” after the company’s 2Q17 earnings. Sixteen analysts (72.7%) maintained […]
What Are Investors Willing to Pay for Hyatt Stock?
Current valuation Hyatt (H) is trading at a forward EV-to-EBITDA[1. enterprise value to earnings before interest, tax, depreciation, and amortization] multiple of 11.2x. The current valuation is lower than its average valuation of 12.2x since January 2010. Peer comparison Hyatt is trading at one of the lowest multiples among its peers. Wyndham Worldwide (WYN) is trading […]
What You Should Know about Hyatt’s Leverage Ratio
Hyatt’s debt Hyatt’s (H) total debt increased from $1.6 billion at the end of 2016 to $1.7 billion at the end of 1Q17. Its debt remained constant at $1.7 billion at the end of 2Q17. Hyatt’s debt has fluctuated from $1.3 billion to $1.7 billion for the past five years, thanks to its routine acquisitions […]
How Hyatt’s Credit Card Data Breach Could Impact Its Growth Plans
Second breach in two years On October 12, 2017, Hyatt revealed that its payment system had been breached. There was unauthorized access detected in 41 hotels in 11 countries, exposing customer credit card information at these locations. About 50% of these hotels were located in China. *Other affected countries and territories include Brazil, Colombia, Guam, Indonesia, […]
Hyatt Increases Guidance for Its Key Metrics
Hyatt’s RevPAR (revenue per available room) for 2Q17 rose 2.4% in constant dollars and 2.9% year-over-year in constant currency terms across its systemwide properties.
Hyatt Stock Underperforms in 2017
Hyatt (H), which is expected to report its 3Q17 results on November 2, is the only major hotel stock to fall in October. Hyatt stock has fallen 0.74% month-to-date.
What Marriott’s Key Metrics Suggest for 2017
Marriott’s RevPAR for 2Q17 rose 2.2% YoY in constant dollars across its worldwide properties. Its North America RevPAR rose 0.9% YoY in constant dollars.
Marriott on the Street: What the Analysts Recommend
Of the 28 analysts tracking Marriott, five (17.9%) have a “strong buy” recommendation, while nine (32.1%) have a “buy,” and 13 (46.4%) have a “hold.”
What’s Priced into Marriott’s Valuation Multiple Now?
Marriott is now trading at a forward EV-to-EBITDA multiple of 15.5x, compared with its average historical valuation of 13.9x since January 2008.
How Marriott’s 3Q17 Earnings Guidance Disappointed Analysts
In 2Q17, Marriott International’s (MAR) operating income grew 59% YoY (year-over-year) to $620 million.
Marriott’s Revenue Is Now Expected to Go This Way in 2017
In 2Q17, Marriott’s revenues grew 49% YoY to $5.8 billion, compared with $3.9 billion in 2Q16, due to higher fee revenues and RevPAR and room growth.
Wall Street Analysts’ Ratings for Marriott before Its 2Q17 Earnings
According to a Reuters consensus of 28 analysts tracking Marriott (MAR), five analysts have a “strong buy” recommendation on the stock, and nine analysts have a “buy” recommendation on the stock.
Marriott International’s Valuation: What Is Priced In?
Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 15.6x.
Why Investors Should Pay Attention to Marriott’s Debt Levels
Total debt on Marriott’s balance sheet increased from $3.8 billion at the end of 2014 to $4.1 billion at the end of 2015 and $8.2 billion at the end of 4Q16.
Can Marriott Improve Its Margin after the Starwood Acquisition?
For fiscal 2017, Marriott’s EBITDA is expected to rise 44.3% to ~$3.1 billion.
Marriott’s Revenues Could Grow 25% despite Hotel Industry Slowdown
For 2Q17, Marriott’s total fee revenues are expected to increase to $820 million–$835 million.
What Marriott’s Key Metrics Suggest ahead of Its 2Q17 Results
During the second quarter, Marriott (MAR) added 17,000 rooms, including 6,400 rooms internationally and 3,300 rooms from competitors.
What Analysts Recommend for Hyatt Ahead of Its 2Q17 Results
Analyst views According to Reuters, of the 22 analysts tracking Hyatt (H), three analysts (13.6%) have a “strong buy” rating on the stock, two analysts (9.1%) have a “buy” rating, 16 analysts (72.7%) have a “hold” rating, and one analyst (4.5%) has a “sell” rating. There are no “strong sell” ratings on the stock. Analyst […]
How Hyatt’s Valuation Compares
Current valuation Hyatt (H) currently trades at a forward EV-to-EBITDA multiple of 15.1x. Hyatt’s valuation is significantly higher than its average valuation since January 2010 of 13.0x. Peer comparison Hyatt’s valuation is among the highest in its peer group. Marriott International (MAR) has a multiple of 15.3x, Hilton Worldwide Holdings (HLT) is trading at a […]
What You Should Know About Hyatt’s Leverage Ratio
Increasing debt Hyatt’s growth has been partly organic and partly inorganic. The inorganic growth has been supported by debt. Hyatt’s current debt is similar to that seen in 2014, at $1.4 billion. It fell to $1.0 billion at the end of 2015. Prior to 2014, its debt was even lower, at $1.3 billion in 2013 and […]
Could Hyatt’s Revenue Growth Translate to Profit Growth?
Analyst estimates In 2Q17, analysts expect Hyatt’s (H) EBITDA (earnings before interest, tax, depreciation, and amortization) to fall 4.9% YoY (year-over-year) to $215.9 million. EBITDA are expected to fall another 3.0% YoY in the third quarter to $186.3 million. Growth is expected to resume in the fourth quarter, with EBITDA rising 18.1% YoY to $174.9 million. […]
What Analysts Expect for Hyatt’s Revenue Growth in 2017
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 […]
Analyzing Hyatt’s Key Metrics Ahead of Its 2Q17 Results
Revenue per available room A hotel’s operational efficiency is measured by its RevPAR (revenue per available room), which is calculated by dividing a hotel’s total guest room revenue by its room count. The two main factors driving a hotel’s RevPAR are its occupancy rates and average daily rates. In 1Q17, Hyatt’s RevPAR fell 4.7% YoY […]
How Hyatt Stock Has Performed in 2017
Hyatt will report its 2Q17 earnings on August 3, 2017. In this series, we’ll assess Hyatt’s performance based on key metrics and look at analyst estimates for Hyatt’s 2Q17 performance,
Wyndham Worldwide: Analysts’ Ratings and Target Prices
Ten analysts currently have active coverage on Wyndham Worldwide (WYN) stock. Of these analysts, 20% have “strong buy” recommendations on the stock.
Should Dividend Investors Buy Wyndham Stock?
On July 21, 2017, Wyndham Worldwide (WYN) had a closing price of $103.1 and an indicated dividend yield of 2.3%, the highest among its peers.
Can Wyndham’s Profitability Improve in 2017?
After Wyndham’s fall in 1Q17, Wall Street analysts expect it to clock EBITDA (earnings before interest, tax, depreciation, and amortization) of 2.4% year-over-year to $349.3 million.
Goldman Sachs on Marriott: Annual Sales Growth to Improve 15.6%
Marriott International has provided a return of 22.5% so far in this year.
What Falling Gas Prices Mean for the Hotel Industry
After rising steadily from August 2016 to December 2016, crude oil prices have been falling in 2017.
Average Daily Rate Will Drive US Hotel Industry Growth
The average daily rate (or ADR) measures the average room price paid in the market. In 1Q17, the ADR rose 2.5% year-over-year (or YoY) to $124.27.
US Hotel Industry Supply to Outpace Demand in 2017
The US hotel industry saw its largest revenue fall of 14% year-over-year (or YoY) in 2009. Since then, recovery has been steep.
What Investors Are Willing to Pay for Marriott International
Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 14.5x.
Chart in Focus: Marriott’s Dividend Payout in 2017
Marriott (MAR) has an indicated dividend yield of 1.8%, which is the lowest among its peers.
Should Investors Pay Attention to Marriott’s Debt?
Marriott (MAR) generated $1.6 billion from its cash flow from operations in 2016.
Marriott’s 2017 Revenues Could Grow 25% despite Industry Slowdown
Analysts estimate that Marriott’s (MAR) 1Q17 revenues could grow 40.1% year-over-year to $5.3 billion.
Looking at Hyatt’s Valuation ahead of Its 1Q17 Earnings
Hyatt (H) currently trades at a forward EV-to-EBITDA multiple of 10.2x.
How Has Hyatt Stock Performed in 2017 So Far?
Hyatt (H) stock has had a volatile ride so far in 2017. After falling in January and February, its stock rose in March and April. Hyatt will report its 1Q17 earnings on May 4, 2017.
How Hilton’s Valuation Compares to Peers
Hilton (HLT) currently trades at a forward EV-to-EBITDA multiple of 17.6x.
How Hilton’s Long-Term Debt Is Trending
The hotel sector is capital intensive, and companies in the industry normally carry high debt.
What to Expect from Hilton’s Dividends in 2017
Hilton (HLT) started paying dividends in mid-2015.
How Hilton’s Key Metrics Look ahead of 1Q17 Earnings
A hotel’s operational efficiency is measured by its RevPAR (revenues per available room), which is calculated by dividing a hotel’s total guest room revenue by its room count.
Why Hotel Investors Should Follow Construction Pipeline Data
According to STR Global’s US Construction Pipeline Report for January 2017, rooms under contract rose 16.1% to reach 576,000 rooms in 4,763 hotel properties.
Will Average Daily Rates Drive Hotel Industry Growth in 2017?
ADR (average daily rate) measures the average room price paid in the market. In 2016, the ADR rose 3.1% year-over-year (or YoY) to $123.97, slower than the 4.4% rise it recorded in 2015.
How Has the Hotel Industry Performed in 2017?
In January 2017, the Baird/STR Hotel Stock Index rose 0.5% to close at 3,723. The index recorded a great performance in 2016 as well.
What a Strong US Dollar Means for the US Hotel Industry
The strength of the US dollar measured against currencies that are widely used in international trade is measured by the Trade Weighted Dollar Index.
Why Economic Growth Is Important for the US Hotel Industry
A booming economy allows people to spend money on discretionary items such as air travel, so hotel revenues are higher during economic growth and lower during economic contraction.
What You Need to Know about the US Hotel Industry Performance
The hotel industry is largely driven by the growth of the general economy, which instills spending confidence in both businesses and households.
Here’s What’s Currently Priced into Marriott’s Valuation Multiple
Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 15.8x. It’s significantly higher than its average valuation of 13.9x since January 2008.
Innovation Is the Name of the Game for Marriott
Eventually, artificial intelligence will allow Marriott to make customized recommendations to customers based on what they have shared with Marriott.
Marriott’s Profitability in 2017: Could It Improve?
For 2016, Marriott”s (MAR) operating income rose 14.0% to $2.2 billion. Some of the growth can be attributed to the consolidation of Starwood’s financials with Marriott’s.
Do Marriott’s Key Metrics Suggest a Buoyant 2017?
Marriott’s RevPAR for 4Q16 rose 0.80% in constant dollars across its worldwide properties.
Vail Resorts: Exceptional Takes Time, According to Baron
Baron Capital began investing in Vail Resorts in 1997, and it owns a ~15%–20% stake in the company. According to Ron Baron, this investment has returned ~50%–75%.
What Do Analysts Recommend for Marriott ahead of 4Q16 Results?
According to a Reuters consensus, of the 28 analysts tracking Marriott (MAR), five of them (18.0%) have a “strong buy” for the stock.
What Are Investors Willing to Pay for Marriott International?
Marriott (MAR) currently trades at a forward EV-to-EBITDA multiple of 15.8x. Its valuation has been significantly higher than its average valuation.
What Do Marriott’s Key Metrics Suggest ahead of 4Q16 Results?
For 3Q16, Marriott and Starwood Hotels & Resorts together added 17,600 rooms, taking the total to 4,554 properties and 777,000 timeshare resorts.
What Are Analysts Estimating for Marriott Stock in 4Q16?
Marriott (MAR) will report its 4Q16 earnings on February 16, 2017, after the market opens. Analysts are expecting revenue to rise 33.9% YoY.
How Could Expedia’s Instant Booking Partnership Affect Priceline?
Priceline (PCLN) was the first OTA (online travel agent) to become part of TripAdvisor’s Instant Booking platform, joining it in late 2015.
What Do Marriott’s Key Metrics Suggest ahead of 3Q16 Results?
Marriott’s (MAR) RevPAR for 2Q16 rose 2.9% across its worldwide properties. North America RevPAR rose 3.2% due to a 2.2% rise in ADR.
How Will the Marriott-Starwood Merger Impact Consumers?
According to Marriott’s (MAR) CEO, Arne Sorensen, Starwood’s (HOT) guest loyalty program was a “central, strategic rationale for the transaction.”
Marriott-Starwood Merger Creates the World’s Largest Hotel Chain
The Marriott-Starwood merger creates the world’s largest hotel chain. Spanning across 110 countries, it will have more than 5,700 properties.
Why Did Starwood Sell Itself?
The last two years have been marked by turmoil for Starwood Hotels (HOT). Starwood’s properties include brands like the Sheraton, Westin, St. Regis, and W hotels.
What Does a Strong US Dollar Mean to the US Hotel Industry?
The strong dollar has created challenging headwinds for the hotel industry, and tourists may look for alternative tourist destinations. It also affects the length of the stay for international tourists and how they spend their money.
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.
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.
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.
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.
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.
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.
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.
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.
Hyatt’s Leverage and Coverage Ratios
The total debt for Hyatt has increased from $2,112 million in 2010 to $3,512 million in 2014. Its net debt increased from -$863 million in 2010 to $575 million in 2014.
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%.
Investor’s Must Know: Why Hyatt Is Buying Back Shares
Hyatt repurchased $445 million of its own stocks in 2014. The company bought back about 7.7 million shares, which accounted for 5.5% of the total outstanding shares, at an average price of $57.8.
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.
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.
Driven by Strong US Performance, Hyatt Grew Its Revenue
Hyatt’s (H) improving operating metrics have resulted in a strong growth in revenue. The company’s total revenue has grown from $3,527 million in 2010 to $4,415 million in 2014.
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.
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.