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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.33
H's Cash to Debt is ranked higher than
57% of the 790 Companies
in the Global Lodging industry.

( Industry Median: 0.81 vs. H: 0.33 )
H' s 10-Year Cash to Debt Range
Min: 0.22   Max: 1.04
Current: 0.33

0.22
1.04
Equity to Asset 0.58
H's Equity to Asset is ranked higher than
71% of the 775 Companies
in the Global Lodging industry.

( Industry Median: 0.54 vs. H: 0.58 )
H' s 10-Year Equity to Asset Range
Min: 0.55   Max: 0.71
Current: 0.58

0.55
0.71
Interest Coverage 3.58
H's Interest Coverage is ranked higher than
52% of the 534 Companies
in the Global Lodging industry.

( Industry Median: 12.77 vs. H: 3.58 )
H' s 10-Year Interest Coverage Range
Min: 0.88   Max: 8.95
Current: 3.58

0.88
8.95
F-Score: 8
Z-Score: 2.40
M-Score: -3.04
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 5.57
H's Operating margin (%) is ranked higher than
62% of the 778 Companies
in the Global Lodging industry.

( Industry Median: 8.95 vs. H: 5.57 )
H' s 10-Year Operating margin (%) Range
Min: 1.47   Max: 10.3
Current: 5.57

1.47
10.3
Net-margin (%) 4.95
H's Net-margin (%) is ranked higher than
69% of the 778 Companies
in the Global Lodging industry.

( Industry Median: 5.85 vs. H: 4.95 )
H' s 10-Year Net-margin (%) Range
Min: -1.29   Max: 7.25
Current: 4.95

-1.29
7.25
ROE (%) 4.34
H's ROE (%) is ranked higher than
65% of the 741 Companies
in the Global Lodging industry.

( Industry Median: 6.81 vs. H: 4.34 )
H' s 10-Year ROE (%) Range
Min: -0.86   Max: 7.89
Current: 4.34

-0.86
7.89
ROA (%) 2.53
H's ROA (%) is ranked higher than
66% of the 781 Companies
in the Global Lodging industry.

( Industry Median: 3.40 vs. H: 2.53 )
H' s 10-Year ROA (%) Range
Min: -0.6   Max: 4.34
Current: 2.53

-0.6
4.34
ROC (Joel Greenblatt) (%) 4.99
H's ROC (Joel Greenblatt) (%) is ranked higher than
58% of the 781 Companies
in the Global Lodging industry.

( Industry Median: 13.58 vs. H: 4.99 )
H' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 1.33   Max: 11.02
Current: 4.99

1.33
11.02
Revenue Growth (%) 9.10
H's Revenue Growth (%) is ranked higher than
82% of the 602 Companies
in the Global Lodging industry.

( Industry Median: 5.50 vs. H: 9.10 )
H' s 10-Year Revenue Growth (%) Range
Min: -10   Max: 9.1
Current: 9.1

-10
9.1
EBITDA Growth (%) 24.00
H's EBITDA Growth (%) is ranked higher than
87% of the 498 Companies
in the Global Lodging industry.

( Industry Median: 7.40 vs. H: 24.00 )
H' s 10-Year EBITDA Growth (%) Range
Min: -23.7   Max: 24
Current: 24

-23.7
24
EPS Growth (%) 64.90
H's EPS Growth (%) is ranked higher than
94% of the 418 Companies
in the Global Lodging industry.

( Industry Median: 7.70 vs. H: 64.90 )
H' s 10-Year EPS Growth (%) Range
Min: -47.3   Max: 64.9
Current: 64.9

-47.3
64.9
» H's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

H Guru Trades in Q1 2013

Jim Simons 50,700 sh (New)
Third Avenue Management 353,337 sh (New)
Ron Baron 5,804,741 sh (+7.68%)
Steven Cohen 207,512 sh (+2.03%)
Manning & Napier Advisors, Inc 95,580 sh (+0.74%)
Mario Gabelli 62,800 sh (unchged)
Kyle Bass Sold Out
» More
Q2 2013

H Guru Trades in Q2 2013

Jim Simons 134,500 sh (+165.29%)
Manning & Napier Advisors, Inc 159,120 sh (+66.48%)
Third Avenue Management 491,399 sh (+39.07%)
Ron Baron 5,925,502 sh (+2.08%)
Mario Gabelli 60,800 sh (-3.18%)
Steven Cohen 14,378 sh (-93.07%)
» More
Q3 2013

H Guru Trades in Q3 2013

Murray Stahl 7,416 sh (New)
Ron Baron 6,262,514 sh (+5.69%)
Manning & Napier Advisors, Inc 167,074 sh (+5%)
Mario Gabelli 60,800 sh (unchged)
Third Avenue Management 490,229 sh (-0.24%)
Jim Simons 98,500 sh (-26.77%)
Steven Cohen 6,104 sh (-57.55%)
» More
Q4 2013

H Guru Trades in Q4 2013

Paul Tudor Jones 6,356 sh (New)
Steven Cohen 21,469 sh (+251.72%)
Jim Simons 165,600 sh (+68.12%)
Murray Stahl 10,656 sh (+43.69%)
Ron Baron 6,464,255 sh (+3.22%)
Mario Gabelli 60,800 sh (unchged)
Third Avenue Management 489,323 sh (-0.18%)
Manning & Napier Advisors, Inc 157,964 sh (-5.45%)
» More
» Details

Insider Trades

Latest Guru Trades with H

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2012-09-30 Add 10.42%0.12%$33.74 - $41.51 $ 54.245%5174796
Mario Gabelli 2012-09-30 Add 23.62%$33.74 - $41.51 $ 54.245%62800
Richard Perry 2012-06-30 Sold Out 0.04%$35.38 - $43.74 $ 54.240%0
Richard Perry 2012-03-31 New Buy0.04%$37.83 - $44.1 $ 54.239%18400
Mario Gabelli 2011-09-30 Add 604%0.01%$31.01 - $43.25 $ 54.251%52800
George Soros 2011-06-30 Sold Out $38.92 - $45.26 $ 54.228%0
Mario Gabelli 2011-06-30 Add 50%$38.92 - $45.26 $ 54.228%7500
Jean-Marie Eveillard 2011-03-31 Sold Out $41.35 - $49.57 $ 54.217%0
Mario Gabelli 2011-03-31 New Buy$41.35 - $49.57 $ 54.217%5000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Hyatt Hotels Corporation

Ron Barons Comments on Hyatt Hotels Corporation - Aug 02, 2013

After graduating from Harvard University, Mark Hoplamazian earned his MBA in 1989 from the University of Chicago's Booth School of Business. At Booth, Mark became friendly with Tom Pritzker, who then recruited Mark as a young executive for The Pritzker Organization. When no one in the Pritzkers' heavily Jewish family office could pronounce or spell Mark's Armenian Christian last name, Tom nicknamed him "Steinberg." The Pritzker Organization's flagship investment then, as now, was Hyatt Hotels Corporation (H).

Early in Mark's career, Jay Pritzker, Tom's dad and the founder of that organization, asked Mark to take part in a meeting between Sam Zell, who at the time was Itel Corporation's Chairman, and Jay. Soon after that meeting began, Mark hesitantly asked Sam a pointed question. After Sam answered, Jay asked Mark to leave the room.About an hour later, after Jay's meeting with Sam had ended, Jay called Mark and asked him to come back. When Mark returned to Jay's office, he apologized for asking what he thought was a dumb and embarrassing question. Jay responded with what Mark still considers the most valuable business advice of his career, "There is no such thing as a dumb question." Jay explained that because Sam's answer to Mark's question was so contrary to what he had expected, it enabled Jay to invest in Itel at an exceptionally attractive price. This was since Jay believed Itel needed the proceeds from a Pritzker investment to unwind a disadvantageous deal that Sam had made previously with Michael Dingman.

After working for the Pritzker family for more than seventeen years, Mark clearly understood the culture of that family's organization. It was not surprising, as a result, that in 2006 Mark was appointed Hyatt Hotel Corp.'s CEO. This was although the talented executive had no prior direct hotel operating experience. "Not growing up in the hotel business was a huge advantage," Mark explained. It enabled him to travel for almost nine months meeting the managers of the geographically diverse, 483 unit, Hyatt Hotel chain and ask them what were "ostensibly dumb questions." He obviously learned that early lesson from Jay well that "there is no such thing as a dumb question."

Hyatt Hotel's managers' answers to Mark's questions have enabled him to create competitive advantage for Hyatt by offering its guests difficult to replicate services. They have even created a sub-brand, Andaz, which in the Tibetan language means, "as you like it"…and just as clearly reflects the Hyatt culture. Hotels have become a mature and cyclical business in the United States. Hyatt, with the best balance sheet in its industry and a significantly smaller "footprint" than its competitors Hilton, Marriot and Starwood, has grown its units by about 25% since Mark was appointed CEO. About 40% of the new Hyatt hotels are managed properties located in India and China. India and China are clearly hotel growth markets since each nation has a small fraction of the hotel rooms in America. This is although both countries have about four times the population of our country. Mark's efforts are also having an impact on the company's core business customers. His efforts to train his staff to provide "as you like it" services to their guests are beginning to receive very favorable reviews from its business guests and increase their lengths of stay. This is quite important to the chain's profitability since it will cost them less to put "heads in beds."

From Ron Baron's second quarter 2013 commentary.
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Ron Baron Comments on Hyatt - Apr 24, 2013

Hyatt (H) continuously invests in room renovations to keep its properties among the most attractive in the lodging industry in terms of quality and amenities. The company is also making expensive "key money" and infrastructure investments to expand its managed portfolio of world class hotels in China and India.We think those investments offer the company a large growth opportunity.

From Ron Baron’s Baron Funds first quarter 2013 investor letter.


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Baron Funds Comments on Hyatt Hotels - Aug 24, 2012

From Baron Funds' second quarter commentary:

Hyatt Hotels Corp. (H), a global lodging company with brands including Park Hyatt, Andaz, and Grand Hyatt, declined 13.0% in the second quarter. The company's expenses were above analysts' expectations due to the company's recent acquisitions and growth initiatives. Revenue per available room increased 8.3% in the first quarter while margins improved 220 basis points. RevPar in the second quarter gained 7.6% which we regard as consistent with these results and shows Hyatt's core business remains strong. We continue to believe that Hyatt's spending related to the company's growth initiatives will ultimately improve profitability. We like its opportunities to expand throughout Asia with franchisees and management contracts. Costs to build and operate iconic, urban hotel properties in Asia are much less than it would cost to build and operate such properties in America. Rooms are also much cheaper. Management recently initiated a $200 million share repurchase program since it regards its share price as unusually attractive.At present, Hyatt shares are valued for 11 times current year estimated EBITDA and at a substantial discount to replacement cost of its properties. Its shares are also at levels substantially below that of private hotel transactions. (David Baron)

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Top Ranked Articles about Hyatt Hotels Corporation

Ron Barons Comments on Hyatt Hotels Corporation
After graduating from Harvard University, Mark Hoplamazian earned his MBA in 1989 from the University of Chicago's Booth School of Business. At Booth, Mark became friendly with Tom Pritzker, who then recruited Mark as a young executive for The Pritzker Organization. When no one in the Pritzkers' heavily Jewish family office could pronounce or spell Mark's Armenian Christian last name, Tom nicknamed him "Steinberg." The Pritzker Organization's flagship investment then, as now, was Hyatt Hotels Corporation (H). Read more...
Ron Baron Comments on Hyatt
Hyatt (H) continuously invests in room renovations to keep its properties among the most attractive in the lodging industry in terms of quality and amenities. The company is also making expensive "key money" and infrastructure investments to expand its managed portfolio of world class hotels in China and India.We think those investments offer the company a large growth opportunity. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 41.60
H's P/E(ttm) is ranked lower than
57% of the 596 Companies
in the Global Lodging industry.

( Industry Median: 21.40 vs. H: 41.60 )
H' s 10-Year P/E(ttm) Range
Min: 35.91   Max: 304.54
Current: 41.6

35.91
304.54
P/B 1.80
H's P/B is ranked higher than
61% of the 727 Companies
in the Global Lodging industry.

( Industry Median: 1.74 vs. H: 1.80 )
H' s 10-Year P/B Range
Min: 0.99   Max: 1.8
Current: 1.8

0.99
1.8
P/S 2.10
H's P/S is ranked lower than
55% of the 824 Companies
in the Global Lodging industry.

( Industry Median: 1.53 vs. H: 2.10 )
H' s 10-Year P/S Range
Min: 1.3   Max: 2.43
Current: 2.1

1.3
2.43
PFCF 38.00
H's PFCF is ranked lower than
60% of the 467 Companies
in the Global Lodging industry.

( Industry Median: 17.64 vs. H: 38.00 )
H' s 10-Year PFCF Range
Min: 27.99   Max: 228.68
Current: 38

27.99
228.68
EV-to-EBIT 41.70
H's EV-to-EBIT is ranked lower than
66% of the 668 Companies
in the Global Lodging industry.

( Industry Median: 18.50 vs. H: 41.70 )
H' s 10-Year EV-to-EBIT Range
Min: 33.1   Max: 153
Current: 41.7

33.1
153
PEG 1.70
H's PEG is ranked higher than
66% of the 330 Companies
in the Global Lodging industry.

( Industry Median: 1.80 vs. H: 1.70 )
H' s 10-Year PEG Range
Min: 0.58   Max: 1.7
Current: 1.7

0.58
1.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.10
H's Price/Tangible Book is ranked higher than
59% of the 624 Companies
in the Global Lodging industry.

( Industry Median: 2.00 vs. H: 2.10 )
H' s 10-Year Price/Tangible Book Range
Min: 1.12   Max: 1.92
Current: 2.1

1.12
1.92
Price/Median PS Value 1.20
H's Price/Median PS Value is ranked higher than
60% of the 727 Companies
in the Global Lodging industry.

( Industry Median: 1.10 vs. H: 1.20 )
H' s 10-Year Price/Median PS Value Range
Min: 0.76   Max: 1.26
Current: 1.2

0.76
1.26
Price/Peter Lynch Fair Value 1.70
H's Price/Peter Lynch Fair Value is ranked higher than
54% of the 174 Companies
in the Global Lodging industry.

( Industry Median: 1.20 vs. H: 1.70 )
H' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.52   Max: 1.52
Current: 1.7

Price/Graham Number 2.00
H's Price/Graham Number is ranked higher than
50% of the 513 Companies
in the Global Lodging industry.

( Industry Median: 1.40 vs. H: 2.00 )
H' s 10-Year Price/Graham Number Range
Min: 1.8   Max: 3.41
Current: 2

1.8
3.41
Earnings Yield (Greenblatt) 2.40
H's Earnings Yield (Greenblatt) is ranked lower than
58% of the 688 Companies
in the Global Lodging industry.

( Industry Median: 5.40 vs. H: 2.40 )
H' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 3
Current: 2.4

0.7
3
Forward Rate of Return (Yacktman) 62.51
H's Forward Rate of Return (Yacktman) is ranked higher than
98% of the 528 Companies
in the Global Lodging industry.

( Industry Median: 3.89 vs. H: 62.51 )
H' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.6   Max: 62.7
Current: 62.51

0.6
62.7

Business Description

Industry: Travel & Leisure » Lodging
Compare: » details
Traded in other countries:1HTA.Germany
Hyatt Hotels Corporation is a Delaware corporation which was founded in 1957.It is a global hospitality company which manages, franchises, owns and develops Hyatt-branded hotels, resorts and residential and vacation ownership properties. As of December 31, 2012, its worldwide portfolio consisted of 500 properties (135,144 rooms and units), including 194 managed properties (69,263 rooms), all of which is operated under management agreements with third-party property owners, 146 franchised properties (24,191 rooms), all of which are owned by third parties that have franchise agreements and are operated by third parties, 95 owned properties (including 2 consolidated hospitality ventures) (24,284 rooms), 3 capital leased properties (1,225 rooms) and 5 operating leased properties (1,840 rooms), 24 managed properties and 8 franchised properties owned or leased by unconsolidated hospitality ventures, 15 vacation ownership properties (963 units) and 10 residential properties (1,102 units), all of which the Company manages and some of which it owns. The Company develops and operates Hyatt-branded timeshare, fractional and other forms of residential or vacation properties. Its full service hotels and resorts operate under five established brands, Park Hyatt, Andaz, Hyatt, Grand Hyatt and Hyatt Regency. Its two select service brands are Hyatt Place and Hyatt House. The Company develops, sells and manages vacation ownership properties in select locations as part of the Hyatt Residence Club. Hyatt, Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt Place, Hyatt House, Hyatt Residence Club, Hyatt Vacation Club, Hyatt Gold Passport, Hyatt Resorts and related trademarks, logos, trade names and service are the property of Hyatt Corporation, a wholly owned subsidiary of Hyatt Hotels Corporation. It is subject to environmental laws and regulations of federal, state, local and foreign governments.

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