We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hyatt Strong on Expansion & Miraval Buyout Amid Macro Woes
Read MoreHide Full Article
Hyatt Hotels Corporation’s (H - Free Report) strong developmental pipeline, consistent expansion plans, extensive international exposure and attempt toward expanding beyond traditional hotel are major growth drivers.
However, lingering political uncertainties in international markets pose a threat to profits.
Recently, this leading global hospitality company announced third-quarter 2017 results. Adjusted earnings per share of 26 cents beat the Zacks Consensus Estimate of 17 cents by 52.9%. However, earnings were down 44.7% year over year from 47 cents due to natural disasters and the Jewish Holiday timing.
Net revenues of $1.12 billion rose 2.8% year over year on the back of higher management and franchise fees, increased other revenues as well as a rise in other revenues from managed properties, partially offset by lower contribution from owned and leased hotels. The top line also surpassed the Zacks Consensus Estimate of $1.09 billion by more than 2%.
Key Growth Drivers
Hyatt’s strong differentiated brand portfolio and exceptional personalized service have helped the company gain traction globally through both its managed and franchised hotels.As of Sep 30, 2017, the company's portfolio included 739 properties in 57 countries under 13 premier brands.
In addition to domestic lands, Hyatt is consistently trying to expand its presence in the Asia-Pacific, Europe, Africa, Middle East and Latin America regions.
Interestingly, the company has experienced net rooms' growth between 6% and 7% for ten consecutive quarters. With plans of opening at least 60 hotels, 2017 is set be another year of record openings.
Also, the company continues to rapidly expand the Hyatt Place and Hyatt House brands globally, reflecting its robust momentum in the fast-growing select service category.
Meanwhile, the acquisition of Miraval in January has helped Hyatt expand beyond traditional hotel stays into the swiftly growing space of wellness, which goes well with high-end travelers. Though Miraval’s operations are likely to contribute meaningfully to Hyatt's overall earnings starting 2019, the initial response has been positive as well.
In fact, post the Miraval acquisition, the company’s shares have rallied 28.9% to date compared with the industry’s growth of 19.6%.
Moreover, Hyatt is continuously devising new plans to enhance guest experience and drive occupancy in order to survive in a tough economic environment. In first-quarter 2017, Hyatt launched a loyalty program World of Hyatt — a platform for guest engagement. The company is witnessing higher level of guest satisfaction owing to the enhancement of its loyalty program which is helping the company gain market share and add customers.
Concerns
Macroeconomic concerns in several international markets might spell trouble for the company. In the Middle East, political unrest, lower government spending, new hotels and a tough oil market continue to hurt tourism.
Moreover, given a substantial exposure in the international markets, the company is vulnerable to fluctuations in exchange rates like other hotel companies including Marriott International, Inc. (MAR - Free Report) , Hilton Worldwide Holdings (HLT - Free Report) and Wyndham Worldwide Corporation . Notably, Hyatt has been witnessing a decline in international inbound travel owing to a stronger dollar.
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Hyatt Strong on Expansion & Miraval Buyout Amid Macro Woes
Hyatt Hotels Corporation’s (H - Free Report) strong developmental pipeline, consistent expansion plans, extensive international exposure and attempt toward expanding beyond traditional hotel are major growth drivers.
However, lingering political uncertainties in international markets pose a threat to profits.
Recently, this leading global hospitality company announced third-quarter 2017 results. Adjusted earnings per share of 26 cents beat the Zacks Consensus Estimate of 17 cents by 52.9%. However, earnings were down 44.7% year over year from 47 cents due to natural disasters and the Jewish Holiday timing.
Net revenues of $1.12 billion rose 2.8% year over year on the back of higher management and franchise fees, increased other revenues as well as a rise in other revenues from managed properties, partially offset by lower contribution from owned and leased hotels. The top line also surpassed the Zacks Consensus Estimate of $1.09 billion by more than 2%.
Key Growth Drivers
Hyatt’s strong differentiated brand portfolio and exceptional personalized service have helped the company gain traction globally through both its managed and franchised hotels.As of Sep 30, 2017, the company's portfolio included 739 properties in 57 countries under 13 premier brands.
In addition to domestic lands, Hyatt is consistently trying to expand its presence in the Asia-Pacific, Europe, Africa, Middle East and Latin America regions.
Interestingly, the company has experienced net rooms' growth between 6% and 7% for ten consecutive quarters. With plans of opening at least 60 hotels, 2017 is set be another year of record openings.
Also, the company continues to rapidly expand the Hyatt Place and Hyatt House brands globally, reflecting its robust momentum in the fast-growing select service category.
Meanwhile, the acquisition of Miraval in January has helped Hyatt expand beyond traditional hotel stays into the swiftly growing space of wellness, which goes well with high-end travelers. Though Miraval’s operations are likely to contribute meaningfully to Hyatt's overall earnings starting 2019, the initial response has been positive as well.
In fact, post the Miraval acquisition, the company’s shares have rallied 28.9% to date compared with the industry’s growth of 19.6%.
Moreover, Hyatt is continuously devising new plans to enhance guest experience and drive occupancy in order to survive in a tough economic environment. In first-quarter 2017, Hyatt launched a loyalty program World of Hyatt — a platform for guest engagement. The company is witnessing higher level of guest satisfaction owing to the enhancement of its loyalty program which is helping the company gain market share and add customers.
Concerns
Macroeconomic concerns in several international markets might spell trouble for the company. In the Middle East, political unrest, lower government spending, new hotels and a tough oil market continue to hurt tourism.
Moreover, given a substantial exposure in the international markets, the company is vulnerable to fluctuations in exchange rates like other hotel companies including Marriott International, Inc. (MAR - Free Report) , Hilton Worldwide Holdings (HLT - Free Report) and Wyndham Worldwide Corporation . Notably, Hyatt has been witnessing a decline in international inbound travel owing to a stronger dollar.
Hyatt currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>