Market Overview

Hyatt Hotels Is Late In Its Move To Asset-Light Status, Raymond James Says

Hyatt Hotels Is Late In Its Move To Asset-Light Status, Raymond James Says

During its first investor day in three years, Hyatt Hotels Corporation (NYSE: H) announced plans to sell assets. While the move is positive ,the company’s peers Hilton Hotels (NYSE: HLT) and Marriott International Inc (NASDAQ: MAR) have already achieved asset-light status, according to Raymond James.

The Analyst

Raymond James' William A. Crow maintains a Market Perform rating on Hyatt Hotels.

The Thesis

In a bid to shift toward an asset-light model, Hyatt Hotels announced a new three-year disposition target of $1.5 billion, Crow said in a Thursday note. 

The hotel chain intends to use the disposition proceeds to acquire asset-light platforms as well as for share repurchases, the analyst said.

Even with this move, the focus remains on high-end consumers and on personalizing guest experiences to drive brand loyalty and revenue, Crow said. 

Although Hyatt's plans are positive, the company and its stock are likely to be impacted by a slowing U.S. and global economy, Crow said. 

“We also remain less excited about Hyatt’s ongoing investments in wellness and 'experiential' businesses, at least until we better understand the economic benefits to Hyatt shareholders." 

Raymond James hopes for greater visibility into Hyatt's disclosures and outlook, as “relatively little guidance has historically led to volatility around quarterly earnings," the analyst said. 

Price Action

Hyatt Hotels shares were down 0.77 percent at $72.48 at the time of publication Friday. 

Related Links:

10 Biggest Price Target Changes For Tuesday

Analyst Downgrades Hyatt Hotels Amid Slowing Global Economy 

Latest Ratings for H

Feb 2019MaintainsHoldHold
Jan 2019DowngradesOutperformMarket Perform
Jan 2019DowngradesBuyNeutral

View More Analyst Ratings for H
View the Latest Analyst Ratings

Posted-In: hotels Raymond James William CrowAnalyst Color Reiteration Travel Analyst Ratings General Best of Benzinga


Related Articles (H + HLT)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

The Esports ETF Continues To Benefit From Shifting Video Game Industry

50 Stocks Moving In Friday's Mid-Day Session