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.
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,
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.
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.
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 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.
One of Trump’s highly criticized policies was a complete ban on Muslims entering the United States. However, a complete ban on a race or religion is impossible to implement politically.
Marriott (MAR) stock has had a volatile year, which was expected with the acquisition of Starwood Hotels. MAR stock rose 6.2% in 1Q16, fell 6.6% in 2Q16, and rose 1.3% in 3Q16.
TRIP’s airlines platform will allow users not only to be able to book flights, but also to provide reviews, drawing on its highly successful feature of user experiences.
On April 29, 2015, Starwood put itself up for sale. On August 29, 2015, Anbang offered to buy it at a 20% all-cash premium deal on its last closing price.
Unique visitor growth flat TripAdvisor’s (TRIP) average monthly unique visitors grew by 13.2% YoY (year-over-year) to 351 million users, as compared to 2Q15. This is much slower than the 22% average growth seen in the past four quarters. Keep in mind that from 3Q15, the company started using its own log files to calculate unique […]
The Marriott–Starwood deal holds immense significance for Marriott International because the combined entity of Marriott International and Starwood Hotels and Resorts Worldwide would create the world’s largest lodging company.
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.
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.
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.
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.
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.
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.
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%.
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.
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.
In 2014, Wyndham spent $652 million to purchase 8.6 million shares at an average price of $75.8, which was the equivalent of 7.3% of market capitalization.
Improved operating metrics have resulted in a steady growth in Wyndham Worldwide’s total revenues, with all three segments growing over the past five years.
Vacation unit sales rely on disposable income available to customers. The stable US economy and growing household incomes have positive impacts on Wyndham.
Wyndham Worldwide’s Wyndham Exchange and Rental segment is its most geographically diversified business segment, with a presence in over 100 countries.
In 2014, the US accounted for two-thirds of the rooms in Wyndham Worldwide’s total portfolio, followed by the Asia-Pacific at 16.5% and Europe at 8.2%.
Wyndham had the lowest occupancy rate among peers in fiscal 2014. Its larger presence in the economy and midscale segments accounts for the difference.
