Manika. Pretty good set of numbers here. Yes, Paul, It's a good set of numbers.I think there has been improvement across all of the metrics. There's also been a one time gain, you know, that boosted the net profit. But, you know, the investors were well aware of that.The more interesting thing to look for is what this new Year will bring for Indian hotels in terms of its continued room capacity expansion, its continued expanding footprint and its focus on its budget hotel range, which goes by the brand name ...

Core Insights - Hyatt reported a fourth-quarter system-wide RevPAR growth of 4%, driven primarily by luxury brands, with leisure transient RevPAR increasing about 6% year over year, including 9% growth across luxury brands [3] - The company emphasized a strong performance in international markets and luxury travel, with a notable increase in World of Hyatt membership, which grew to over 63 million, up 19% year over year [6][7] - Hyatt's asset-light strategy is accelerating, with expectations for asset-light earnings to reach approximately 90% by 2026, supported by the ~$2 billion sale of 14 Playa hotels [5][14] Revenue Performance - In the U.S., RevPAR rose 0.5%, with full-service RevPAR up 2% while select-service RevPAR declined due to softened business transient demand [1] - Group RevPAR increased by 3%, aligning with management's expectations and benefiting from a favorable U.S. calendar [2] - For the full year, gross fees rose 9% to $1.198 billion, with organic gross fees growing nearly 8% on a compounded annual basis from 2017 through 2025 [15] Development and Growth - Hyatt achieved net rooms growth of 7.3% in 2025, marking industry-leading growth for the ninth consecutive year, with a record development pipeline of about 148,000 rooms [8][10] - The U.S. experienced its strongest year of signings in five years, with 50% of signings in markets where Hyatt previously had no brand presence [10] - New brands such as Hyatt Select and Hyatt Studios are gaining traction, contributing to the overall growth strategy [11] Financial Outlook - For 2026, management guided to system-wide RevPAR growth of 1% to 3%, with net rooms growth expected at 6% to 7% and gross fees projected between $1.295 billion and $1.335 billion [19] - Adjusted EBITDA is anticipated to be in the range of $1.155 billion to $1.205 billion, representing 13% to 18% growth after adjustments [19] - The company plans to return $325 million to $375 million to shareholders through repurchases and dividends [19] Strategic Initiatives - The company is focusing on deeper relationships in portfolio deals, preferring management or franchise agreements over simple affiliations [12] - Hyatt's asset-light transactions, including the sale of hotels and long-term management agreements, are designed to strengthen its position in luxury all-inclusive offerings [13] - Management plans to update its definition of Adjusted EBITDA starting in Q1 2026 to align with peers and the evolving strategy [18]

Core Insights - The earnings season has shifted focus from AI-related tech stocks to traditional industry leaders, which have been rewarded by the market for their favorable Q4 reports, reasonable valuations, and respectable dividends [1] Group 1: McDonald's (MCD) - McDonald's stock reached a 52-week high of $333 after exceeding Q4 expectations, driven by loyalty and digital engagement improvements [2] - Global comparable sales increased by 6% year-over-year in Q4, with U.S. comparable sales rising by 7%, indicating strong demand [3] - Systemwide sales to loyalty members grew by 20% year-over-year, with active users up by 19%, reflecting recurring demand [3] - MCD is close to becoming a Dividend King, having increased its dividend for 49 consecutive years [3] Group 2: T-Mobile US (TMUS) - T-Mobile's shares surged by 9% after surpassing Q4 expectations, with an additional 2% increase the following day [5] - The company reported industry-leading net customer additions of 2.4 million, including 962,000 postpaid phone net adds, marking an industry best [6] - TMUS has a forward P/E valuation of 18X, which is attractive compared to the industry average of 13X [7] Group 3: Marriott International (MAR) - Marriott's stock increased by 7% following mixed Q4 results, which included a slight EPS miss but a revenue beat and strong forward guidance [8] - Worldwide RevPAR increased by 2% in Q4, driven by 6% growth in international markets, with a 2026 RevPAR growth outlook of 1.5%-2.5% [9] - MAR trades at a forward P/E of 30X, slightly above the broader market but near its decade-long median of 24X [10] - The company has raised its dividend by 25.67% over the last five years, maintaining a low payout ratio of 27% [11]

Core Viewpoint - Hyatt Hotels Corporation is experiencing positive market sentiment following its Q4 2025 earnings call, with a notable increase in stock price and strong investor interest in the company's growth prospects [2][5]. Financial Performance - Hyatt's stock price increased to $172.34, reflecting a rise of approximately 2.20% or $3.71 following the Q4 2025 earnings call [2][5]. - The stock has fluctuated between $168.01 and $180.53, with the highest price over the past year being $180.53 and the lowest at $102.43, indicating significant appreciation over time [3]. Market Position - Hyatt's market capitalization is approximately $16.37 billion, showcasing its substantial presence in the hospitality industry [4][5]. - The trading volume today is 1,288,716 shares, indicating active investor engagement and confidence in the company's future performance [4][5]. Analyst Insights - Stifel Nicolaus set a price target of $170 for Hyatt, which represents a slight decrease of -0.17% from the stock's price of $170.29 at that time [1][5].

Core Insights - The Indian Hotels Company (IHCL) reported a 51% increase in consolidated third-quarter net profit to ₹954 crore from ₹632 crore a year earlier, with revenue from operations rising 12% to ₹2,842 crore [7] - The profit includes exceptional items, notably a ₹327 crore profit from the sale of a joint venture stake and a ₹37 crore impact from new labour codes [7] - The quarter marked the fifteenth consecutive quarter of record performance, achieving an EBITDA of ₹1,134 crore and an EBITDA margin of 39.1% [7] Financial Performance - The hotel segment generated ₹2,579 crore in revenue, contributing to the best-ever segmental quarterly EBITDA of ₹1,050 crore [7] - Revenue growth was bolstered by a 17% increase in airline and institutional catering and a 31% rise in new businesses [7] Growth Strategy - IHCL continued its growth momentum in FY26 with 239 signings, expanding its portfolio to 617 hotels, and opened 120 hotels through strategic partnerships and acquisitions [4][7] - Under the Accelerate 2030 initiative, IHCL acquired a controlling stake in wellness brand Atmantan and a 51% stake in Brij, a boutique experiential leisure offering, along with scaling the Ginger brand through acquisitions [5][7] Financial Position - As of December 31, IHCL had a gross cash balance of ₹3,877 crore, positioning the company for sustained performance through a diversified top line across brands, geographies, and contract types [6][7] - The company maintains a robust pipeline of projects, with the number of rooms in operations matching the pipeline [6]

Group 1 - The vacation-rental platform is expanding its operations into the hotel industry, which it previously aimed to disrupt [1]

Core Viewpoint - Airbnb forecasts first-quarter revenue between $2.59 billion and $2.63 billion, exceeding Wall Street estimates of $2.53 billion, driven by demand for premium rentals despite a decline in cost-conscious customer bookings [1] Financial Performance - In the fourth quarter, Airbnb reported earnings per share of 56 cents, down from 73 cents a year earlier, with quarterly revenue of $2.78 billion, surpassing expectations of $2.71 billion [1] Revenue Projections - The company anticipates revenue growth of "at least low double-digits" for 2026, while analysts project a growth rate of 10.24% [1] Market Strategy - Airbnb has launched a new segment for booking services like private chefs and yoga instructors to compete with hotels, where half of the experiences booked in the fourth quarter were not linked to accommodation [1] - The company is expanding its offerings by partnering with boutique and independent hotels in cities with limited rental supply, such as New York and Madrid, to increase its total addressable market [1] Industry Context - Other travel companies, including Marriott and United Airlines, are also seeing strong performance from high-end travelers, while lower-end customers face challenges due to inflation and economic uncertainty [1]

Core Insights - Airbnb indicates strong demand from premium travelers, contrasting with budget-conscious customers pulling back, reflecting a K-shaped economy in the U.S. [1] - The company forecasts first-quarter revenue exceeding Wall Street estimates, leading to a 6% increase in share price in after-market trading [2] Revenue and Financial Performance - Airbnb projects revenue between $2.59 billion and $2.63 billion for the upcoming quarter, surpassing analysts' average estimate of $2.53 billion [5] - The company reported earnings per share of 56 cents in the fourth quarter, down from 73 cents a year earlier, with quarterly revenue of $2.78 billion, exceeding expectations of $2.71 billion [6] Strategic Initiatives - Airbnb launched a new segment in May 2025, allowing customers to book additional services like private chefs, enhancing competition with hotels [3] - The company is expanding its offerings by partnering with boutique and independent hotels in cities with limited rental supply, aiming to increase its total addressable market [4] Future Outlook - Airbnb anticipates revenue growth of "at least low double-digits" for 2026, aligning with analysts' estimates of approximately 10.24% [5] - The firm does not expect growth in adjusted core profit margins this year due to ongoing reinvestments in marketing, product, and technology [5]

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Core Insights - Hyatt Hotels Corporation reported fourth-quarter 2025 results with earnings exceeding estimates but revenues falling short, leading to a 1.5% decline in shares during pre-market trading [1] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $1.33, significantly above the Zacks Consensus Estimate of 29 cents, compared to 42 cents in the same quarter last year [2] - Revenues reached $1,789 million, slightly below the consensus estimate of $1,793 million, but represented an 11.7% year-over-year increase [2] Revenue Breakdown - Owned and Leased revenues were $423 million, up from $264 million year-over-year [3] - Distribution revenues decreased by 13.7% year-over-year to $177 million, while other revenues fell to $4 million from $11 million in the prior-year quarter [3] Fee Structure - Gross fees increased by 4.5% year-over-year to $307 million, with base management fees rising 8.1%, incentive management fees up 13%, and franchise fees advancing 3.8% [4] - Net fees for the quarter were $290 million, compared to $281 million in the prior-year quarter [5] Operating Metrics - Adjusted EBITDA for the quarter was $292 million, a 14.6% increase year-over-year, but below the model prediction of $324.4 million [6] - Adjusted EBITDA in Management and Franchising was $240 million, up from $219 million year-over-year, but also below the model prediction of $266.4 million [6] Segment Performance - The Owned and Leased segment's adjusted EBITDA was $85 million, compared to $57 million in the prior-year quarter, exceeding the model prediction of $66.4 million [7] - The Distribution segment's adjusted EBITDA fell to $7 million from $20 million year-over-year, missing the model prediction of $38.3 million [7] Balance Sheet and Liquidity - As of December 31, 2025, Hyatt reported cash and cash equivalents of $813 million, up from $749 million in the previous quarter, with total liquidity at $2.3 billion [10] - Total debt decreased to $4.3 billion from $6 billion in the previous quarter [10] Growth Outlook - Hyatt added 8,253 rooms to its system in Q4, with a pipeline of approximately 148,000 rooms, reflecting a 7% year-over-year increase [11] - For 2026, gross fees are projected to be between $1.295 billion and $1.335 billion, with adjusted EBITDA expected in the range of $1.155 billion to $1.205 billion [12][13]