Shares of global hotelier Hyatt Hotels Corp. (H, Financial) increased in the fourth quarter on news that the company sold two assets while retaining the management contracts. Hyatt continues to execute on its asset-light strategy and use the proceeds from the sales for share repurchases, a sign it sees value in its stock. Hyatt expects that two-thirds of EBITDA will be generated from fees and one-third from owned properties upon completion of an expected $1.5 billion in asset sales over the next two years. The company also has a strong balance sheet and trades at an attractive valuation.
From Ron Baron (Trades, Portfolio)'s Baron Partners Fund fourth-quarter 2019 shareholder letter.
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