Susquehanna has revised its price target for Hyatt (H, Financial) shares, decreasing it from $155 to $145, while maintaining a Neutral rating. This adjustment follows an evaluation of the company's first-quarter performance as the summer travel season approaches. Despite the price target reduction, demand for travel remains strong as the critical period nears, providing a stable outlook for Hyatt's operations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Hyatt Hotels Corp (H, Financial) is $143.54 with a high estimate of $198.00 and a low estimate of $112.00. The average target implies an upside of 6.97% from the current price of $134.19. More detailed estimate data can be found on the Hyatt Hotels Corp (H) Forecast page.
Based on the consensus recommendation from 23 brokerage firms, Hyatt Hotels Corp's (H, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hyatt Hotels Corp (H, Financial) in one year is $154.20, suggesting a upside of 14.91% from the current price of $134.19. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hyatt Hotels Corp (H) Summary page.
H Key Business Developments
Release Date: May 01, 2025
- RevPAR Growth: 5.7% system-wide for the quarter.
- Luxury Brand RevPAR: Increased over 8%.
- Business Transient RevPAR: Increased 12% in the quarter.
- Group RevPAR: Increased 9% in the quarter.
- Net Rooms Growth: 10.5% during the quarter.
- Pipeline Rooms: Approximately 138,000 rooms, a 7% increase over last year.
- Loyalty Program Members: Increased by over 2 million, totaling approximately 56 million members, a 22% increase over the past year.
- Gross Fees: $307 million, up 16.9%.
- Adjusted EBITDA: $273 million, a 24% increase after adjusting for assets sold in 2024.
- Share Repurchase: Approximately $149 million of Class A common stock repurchased.
- Total Liquidity: Approximately $3.3 billion, including $1.8 billion in cash and cash equivalents.
- Full Year RevPAR Outlook: 1% to 3% growth expected.
- Net Rooms Growth Outlook: 6% to 7% driven by organic growth.
- Adjusted Free Cash Flow Outlook: $450 million to $500 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hyatt Hotels Corp (H, Financial) reported a strong RevPAR growth of 5.7% for the first quarter, driven by luxury brands and business transient travel.
- The company achieved a net room growth of 10.5% during the quarter, with significant new signings and openings, including the Venetian Resort Las Vegas.
- Hyatt's World of Hyatt loyalty program saw a 22% increase in membership, adding over 2 million members in the first quarter.
- The introduction of the Hyatt Select brand aims to expand offerings in the upper mid-scale segment, targeting secondary and tertiary markets.
- Hyatt Hotels Corp (H) maintained a strong balance sheet with total liquidity of approximately $3.3 billion, supporting future growth and acquisitions.
Negative Points
- Hyatt Hotels Corp (H) adjusted its full-year RevPAR growth outlook to a range of 1% to 3%, indicating a potential slowdown in growth for the remainder of the year.
- The company experienced a slowdown in short-term leisure and business transient bookings in the United States, particularly affecting upscale brands.
- There is macroeconomic uncertainty impacting future booking activity, with mixed indicators for RevPAR growth in international markets compared to the United States.
- Hyatt Hotels Corp (H) faces challenges in completing property sales, with some transactions not expected to close this year due to market conditions.
- The company is experiencing slower booking activity at lower chain scales, impacting distribution segment performance.
