Hyatt is on its way to joining Hilton & Marriott as the 'best blue chip stocks' in the hotel space

Travel Industry Overview - Travel industry is experiencing a turbulent period due to macro uncertainty, but there's cautious optimism in the lodging sector [1] - Forward bookings have paused for about four months, around Liberation Day [3] - The 30-day booking window has decreased to approximately 20 days, indicating last-minute booking trends [3] - Luxury travel is holding up, while weakness is observed at the lower end [4] - Inbound tourism from Mexico and Canada remains weak, potentially due to a weaker dollar [5] International Travel Impact - International travelers account for a low to mid-single-digit percentage (3-5%) of US hotel stays, but certain resorts and gateway cities have a higher percentage [7] - Fewer outbound travels from Americans are expected, with more domestic holidays [8] - Inbound travel, characterized by longer stays, is expected to decline through the rest of 2025 [9] Lodging Stock Picks and Strategy - Hyatt is the top lodging pick, with a "buy" rating despite being down this year and over the past 12 months [9] - Hyatt is in the "fifth or sixth inning" of becoming asset-light, similar to Marriott and Hilton [11] - Hyatt is focusing on wellness and luxury customers, particularly in North America [12] - Hyatt has the biggest pipeline of new properties compared to its competitors [13] - Marriott and Hilton are rated neutral because their upside is already captured, and a resurgence in travel fundamentals is needed for further growth [14] - Hyatt is expected to close an acquisition of a Caribbean Mexican all-inclusive company for over $1 billion [15]