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 […]
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 […]
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 […]
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’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 (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.
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.
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.
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.
Marriott (MAR) is scheduled to report its 2Q17 earnings on August 7. Analysts expect Marriott’s 2Q17 revenues to grow 43.7% year-over-year to $5.6 billion.
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 […]
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 […]
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 […]
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. […]
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 […]
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 […]
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,
For the last four quarters, Wyndham Worldwide’s (WYN) revenue growth has averaged ~0.7% year-over-year (or YoY). In 2016, its revenue growth averaged 1.1%.
Wyndham has the lowest valuation among its peers. Hyatt Hotels has the next lowest valuation of 11.1x, followed by International Continental Hotels Group.
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.
Of the 29 analysts tracking Hilton stock, 79.3% (or 23 analysts) have “buy” ratings, 13.8% (or four analysts) have “hold” ratings, and 6.9% (or two analysts) have “sell” ratings on the stock.
Marriott’s consensus 12-month target price is $97.10. The current target price indicates a 1.5% return potential on the company’s April 28, 2017, closing price of $95.60.
Marriott (MAR) is expected to report its 1Q17 earnings on May 8, 2017. Analysts expect Marriott’s 1Q17 revenues to grow 40.1% year-over-year to $5.3 billion.
According to Reuter’s consensus, out of the 22 analysts tracking Hyatt (H), three analysts have a “strong buy” recommendation on the stock, while two analysts have a “buy” recommendation.
Hyatt’s net debt-to-EBITDA ratio was 5.6x at the end of 2014, and it fell to 5.4x at the end of 2015. Hyatt’s net debt-to-EBITDA ratio rose to 6.1x at the end of 2016.
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.
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.
According to the University of Michigan Consumer Sentiment Index, consumer confidence for February 2017 surged to 95.7%, 4.0 percentage points higher than in February 2016.
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.
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.
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.
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.
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.
On February 15, 2017, Marriott International (MAR) reported its results for the fourth quarter of 2016. It beat analysts’ estimates for revenue and EPS.
For 2016, analysts are estimating Marriott’s (MAR) EBITDA to rise 21.0% to $2.1 billion. Some of the growth might be attributed to the Starwood acquisition.
In 3Q16, Wyndham’s (WYN) adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin rose slightly to 26.7% from 26.2% in 3Q15.
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