Hyatt Hotels: Recession Fears Could Prove Overdone

Mark Dockray profile picture
Mark Dockray
950 Followers

Summary

  • Hyatt's recovery is progressing nicely, with most regions now reporting RevPar in excess of pre-COVID levels despite subdued occupancy rates.
  • Focus is now turning to a potential recession, but with some recovery-driven growth left in the system RevPar might not weaken as much as in past cycles.
  • With the firm also looking at 6-7% annual room count growth, earnings growth looks set to be robust for the foreseeable future.

Hyatt UK

tupungato/iStock Editorial via Getty Images

I had mixed views on Hyatt (NYSE:H) when I first covered the lodging giant at the end of Q1'22. While I felt the business was making the right moves with respect to its

Chart
Data by YCharts

Hyatt Hotels Managed and Franchised Room Count Growth

Data Source: Hyatt Annual & Quarterly Reports

Long-Term Annual Change In RevPar

Source: IHG 2021 Annual Report

This article was written by

Mark Dockray profile picture
950 Followers
I like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on 'The UK Income Investor'.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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