Hyatt Hotels fee revenues increase by 50% in Q3

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Hyatt Hotels Intrinsic Stock Value – Hyatt Hotels ($NYSE:H) Corporation is an American multinational hospitality company that manages and franchises luxury hotels, resorts, and vacation properties. The company’s headquarters are in Chicago, Illinois. The company attributed the increase to growth in its managed and franchised properties, as well as higher average daily room rates.

Earnings

Hyatt Hotels reported a 50% increase in fee revenues in the third quarter of its fiscal year 2022. The company earned a total of 5379.0 million USD in revenue and 132.0 million USD in net income during the quarter. Compared to the same period last year, this represents a 77.6% increase in total revenue and a 159.5% decrease in net income.

Hyatt Hotels has seen a significant increase in its total revenue over the past three years, reaching from 2066.0 million USD in FY2019 to 5379.0 million USD in FY2022. The company attributes this growth to an increase in demand for hotel rooms globally as well as its expansion into new markets.

Stock Price

The company’s stock price rose 1.6% on Friday on the news. The positive media exposure around Hyatt’s strong performance is likely to continue in the near term, given the company’s strong fundamentals. Hyatt’s managed and franchised properties continue to perform well, and its stock price is reflective of this strength.

VI Analysis – Hyatt Hotels Intrinsic Stock Value

Hyatt Hotels Corporation is an American multinational hospitality company that owns, operates, franchises, and manages hotels, resorts, and vacation properties. The company’s headquarters are in Chicago, Illinois. Its brands include Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt Ziva, and Hyatt Zilara.

VI Peers

Hyatt Hotels Corp and its competitors, InterContinental Hotels Group PLC, Hilton Worldwide Holdings Inc, and Choice Hotels International Inc, are all vying for a piece of the pie in the hotel industry. The competition is fierce, with each company offering unique products and services to appeal to different segments of the market. Hyatt has been able to stay ahead of the competition by constantly innovating and expanding its portfolio of brands.

– InterContinental Hotels Group PLC ($LSE:IHG)

InterContinental Hotels Group PLC, commonly known as IHG, is a British multinational hospitality company headquartered in Denham, Buckinghamshire, England. IHG has over 742,000 rooms and 5,028 hotels across nearly 100 countries. Its brands include Candlewood Suites, Crowne Plaza, Even Hotels, Holiday Inn, Hotel Indigo, Hualuxe, InterContinental, Kimpton Hotels and Resorts and Staybridge Suites.

– Hilton Worldwide Holdings Inc ($NYSE:HLT)

Hilton Worldwide Holdings Inc is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. As of 2022, the company had a market cap of $37.73 billion and a return on equity of -143.8%. Hilton Worldwide Holdings was founded in 1919 and is headquartered in Virginia, United States. The company operates in more than 100 countries and has over 4,700 properties.

– Choice Hotels International Inc ($NYSE:CHH)

Hotels International Inc is a publicly traded company that operates in the lodging industry. The company owns, operates, franchises, and manages a portfolio of hotels and resorts. As of 2022, the company had a market cap of 6.53B and a ROE of 74.18%. The company’s primary business is to generate franchise fees and management fees from its hotel and resort properties. Additionally, the company generates revenue from the sale of hotel rooms, food and beverage, and other services.

Summary

Hyatt has been consistently growing its fee revenues over the past few years. This was driven by strong growth in both management and franchise fees. Investing in Hyatt Hotels can be a good way to gain exposure to the global hospitality industry. The company has a strong brand portfolio and a proven track record of growing its fee revenues.