Hyatt's Stock Up 20%, What's Next?

Core Insights - Hyatt Hotels Corporation stock has increased nearly 19% since the start of 2024, underperforming compared to the S&P 500's 22% return and Marriott International's 24% increase during the same period [1] Financial Performance - In Q3 2024, Hyatt's total revenues were flat year-over-year at $1.6 billion, with a 0.9$1.10 billion and $1.12 billion for FY 2024, up from$1.03 billion in FY 2023 [1] Business Model and Growth Strategy - Hyatt's business model focuses on fee-based revenue, licensing, and services, leveraging its brand through partnerships with third-party owners and franchisees [2] - The company added 16 new hotels and 2,589 rooms in Q3 2024, with its pipeline expanding 10% year-over-year to 135,000 rooms [2] - Hyatt aims for over 80% of its earnings to come from fee-based revenues by 2025, forecasting fee-based revenues of $1.085 billion to$1.11 billion for FY 2024, representing a 13% increase at the midpoint [2] Stock Performance Analysis - Over the last four years, Hyatt's stock performance has been volatile, with returns of 29% in 2021, -6% in 2022, 45% in 2023, and 21% in 2024 [3] - The Trefis High Quality Portfolio has outperformed the S&P 500 with less volatility, indicating a more stable investment option compared to Hyatt's stock [3]