What’s Happening With Hyatt’s Stock?
Hyatt Hotels Corporation stock (NYSE: H) has had a strong run recently, gaining 10% over the past month, outpacing the broader S&P 500’s 3% return and peer Marriott International’s (NASDAQ: MAR) 7% gain. But after a rally like that, the key question is: what’s next?
A major catalyst came on June 30, when Hyatt announced a $2B sale of Playa Hotels’ real estate to Tortuga Resorts. While offloading assets may seem concerning, Hyatt retained long-term management contracts, transforming the deal into a high-margin, recurring revenue stream. The move underscores Hyatt’s shift toward an asset-light model, in line with broader industry trends favoring fee-based income over capital-heavy ownership. That shift boosts capital efficiency and appeals to investors. That said, those seeking growth with less volatility than individual stocks might explore the High Quality portfolio, which has outpaced the S&P 500 with returns exceeding 91% since inception.
Q1 Earnings: Mixed Headlines
In Q1 2025, Hyatt posted adjusted earnings per share of $0.46, beating expectations despite flat revenue. RevPAR (revenue per available room) rose 5.7%, and net rooms increased by 10.5%, driving fee income higher. However, reported net income dropped 96% year-over-year, largely due to tough comparisons as last year included gains from asset sales and elevated interest expenses.
- Pay Less, Gain More: ABNB, BKNG Top Hyatt Hotels Stock
- ABNB, BKNG Look Smarter Buy Than Hyatt Hotels Stock
- Better Bet Than Hyatt Hotels Stock: Pay Less To Get More From CCL
- What’s Next For Hyatt Stock?
- More Room Left For Hyatt Stock Gains After 15% Growth This Year?
- Up 14% This Year As Travel Demand Holds Up, Will Hyatt Stock See Further Gains?
Despite the noise, the market focused on the fundamentals. Hyatt repurchased $149 million in stock and reaffirmed its commitment to the asset-light model.
Guidance: Slight Trim, But Growth Still Intact
Management nudged down full-year RevPAR guidance to 1–3%, reflecting a more cautious view of global travel trends. Still, Hyatt maintained its full-year adjusted EBITDA outlook of $1.08 to $1.135 billion, representing 6–12% growth. Looking ahead, investors will focus on key indicators: stability in RevPAR, macro signals around consumer travel demand, and the strength of Hyatt’s fee pipeline.
The Bigger Picture
Valuation-wise, Hyatt trades at a P/E of 19.2 and P/S of 2.2, both lower than Marriott’s 31.3 P/E and 3.1 P/S, suggesting more reasonable pricing. Over the past three years, Hyatt has delivered 22.8% annualized revenue growth, outpacing Marriott’s 18.3% and the S&P 500’s 5.5%. Profitability, however, remains a drag. Hyatt’s operating margin sits at 7.2%, less than half of Marriott’s 15.4%, and its operating cash flow margin is 8.2% vs. Marriott’s 10.3%.
On resilience, Hyatt fell 33.2% during the 2022 inflation shock and 60.6% during the Covid selloff, showing higher sensitivity to downturns than the S&P 500. Still, with strong room growth, a move to an asset-light model, and solid liquidity of $1.8B in cash and a 12.9% cash-to-assets ratio, Hyatt could have more upside, especially if travel momentum holds through 2025. Also, see our analysis on Hyatt Valuation.
Bottom Line
Hyatt’s rally reflects growing confidence in its asset-light transition and expanding fee income. While margins lag Marriott’s, its valuation, growth profile, and capital flexibility make it worth watching.
Investing in a single stock can be risky. For those looking for growth with lower volatility, diversified portfolios like the Trefis High Quality portfolio offer a compelling alternative. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
Invest with Trefis Market-Beating Portfolios