Barron’s Wants Long Term Investors To Check In At Hyatt
November 02, 2009 7:25 AM
As Hyatt gets ready to go public, Barron’s wants long term investors to have a look at its shares. Hyatt’s strong balance sheet, under exploited brand and potential for growth make’s it an ideal stock to own for the long term.
Hyatt is expected to go public this week, offering 38 million shares priced between $ 23 and $ 26 a share. If the shares are rated at $24.50 - midpoint of this range - then, Hyatt would be valued at $ 4.1 billion. However, this is much below that its two famous listed competitors - Starwood Hotels and Resorts Worldwide (NYSE: HOT) and Marriott International (NYSE: MAR).
Hyatt’s book value is more than $26 a share. Barron’s also states that due to the current recession, as fewer guests are checking in to the hotel industry, it may continue struggling into next year. So, investors may have to be patient in expecting great returns for their investment.
