H
Hyatt Hotels Corporation - Ordinary Shares - Class A
Consumer, Event Driven/Special Sit
01/23/2023
Presented
| Date | 01/17/2023 |
| Price | $104.47 |
| Market Cap | $11.19B |
| Ent Value | $11.39B |
| P/E Ratio | 89.54x |
| Book Value | $32.05 |
| Div Yield | 0% |
| Shares O/S | 107.12M |
| Ave Daily Vol | 760,864 |
| Short Int | 7.93% |
Current
| Price | $151.58 |
| Market Cap | $15.21B |
| Hyatt Hotels Corp. engages in the development and management of resort and hotel chains. It operates through the following segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME/SW Asia Management and Franchising, and Apple Leisure Group. The Owned and Leased Hotels segment offers hospitality services and hotels. The Americas Management and Franchising segment consists of properties located in the United States, Latin America, Canada, and the Caribbean. The ASPAC Management and Franchising segment consists of the management and franchising of properties located in Southeast Asia, Greater China, Australia, South Korea, Japan, and Micronesia. The EAME/SW Asia Management segment consists of its management and franchising of properties located primarily in Europe, Africa, the Middle East, India, Central Asia, and Nepal. The Apple Leisure Group segment consists of management and marketing of primarily all-inclusive resorts within the AMR Collection in Latin America The company was founded by Thomas Jay Pritzker in 1957 and is headquartered in Chicago, IL. |
Publicly traded companies mentioned herein: Hilton Worldwide Holdings Inc (HLT), Hyatt Hotels Corp (H), Marriott International Inc (MAR)
Highlights
The presenter is long shares of Hyatt Hotels Corp (H), a midsize hotel brand owner and operator with just under 300k total rooms, which is 20% – 25% the size of Marriott and Hilton. On top of the company’s legacy hotel brands, it acquired Apple Leisure Group (ALG) in 2021 for $2.7B, adding a portfolio of all-inclusive resort brands. Hyatt is a high-quality asset within lodging that has been obscured by its ownership of hotels, causing it to trade at a discount to peers despite the presenter’s belief that it is a better growth asset over the long term. It is now transitioning to an asset light model, which he expects to drive a rerating in the stock over the next two years as well as a capital return opportunity. On top of that, there is a tailwind from the growth in the all-inclusive resort business that could accelerate unit growth. Based on these opportunities, he models a 20% IRR over the next three years.
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