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Bear of the Day: Hyatt Hotels Corporation (H)

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Key Takeaways

  • Hyatt's EPS outlook took a turn for the worse after it offered disappointing guidance on May 1.
  • Its negative post-Q1 EPS revisions are part of a longer-term trend that began in early 2024.
  • H faces slowing growth against a difficult-to-compete stretch and a changing macroeconomic backdrop.

Hyatt Hotels Corporation ((H - Free Report) stock has tumbled 16% in 2025 despite its recent rebound alongside the broader market.

Hyatt’s bottom-line outlook took a turn for the worse after it offered disappointing guidance on May 1. 

The global hotel and hospitality icon’s earnings outlook has tanked over the last year as it faces a difficult-to-compete against stretch and a quickly changing macroeconomic backdrop.

Hyatt: What’s Going On with the Hotel Giant

Hyatt is a global hospitality powerhouse headquartered in Chicago, managing and franchising over 1,450 hotels and all-inclusive properties in 79 countries across six continents.

The company operates under tons of different brands, and it’s expanded through acquisitions, including its planned expansion into the Caribbean and Mexico via its planned purchase of Playa Hotels & Resorts N.V.

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Hyatt has also gone full steam ahead on an asset-light business model. The strategy is to own fewer physical properties to focus on earning money by managing and franchising the hotels and resorts.

The company posted booming growth after its Covid downturn despite competition from Airbnb and others. That said, Hyatt is facing slowing growth against a difficult-to-compete stretch and a quickly changing macroeconomic backdrop.

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Image Source: Zacks Investment Research

Hyatt’s consensus fiscal 2025 earnings estimate has dropped from $2.59 a share to $2.00 since it reported its Q1 results on May 1, with its 2026 outlook sliding to $3.14 from $3.91. The recent downward earnings revisions have earned Hyatt a Zacks Rank #5 (Strong Sell).

Stay Away from Hyatt Stock for Now?

Hyatt’s negative post-Q1 revisions are part of a longer-term trend that began in early 2024.

That said, the company’s long-term outlook likely remains intact, and H stock has crushed its Hotels and Motels segment over the past decade.

The question in the near term is should investors buy Hyatt even though its earnings outlook continues to tank.

The short answer is that investors and traders should likely stay away from the Hotel giant for now since there are plenty of other stocks and industries thriving amid the current economic environment. 


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