Shares of Hyatt Hotels Corp. (H), a global lodging company, increased in the second quarter after reporting strong earnings growth driven by an uptick in group business bookings. Groups comprise 45% of the company’s domestic bookings. Hyatt has also benefited from the sale of non-core assets, generating excess cash that Hyatt has used to accelerate share repurchases and purchase underperforming quality assets in new locations. We think Hyatt’s growth in units and increased revenue per available room (RevPAR) are not yet reflected in its share price. (David Baron)
From Ron Baron (Trades, Portfolio)’s Baron Funds Second Quarter 2014 Report.
