Morningstar Rating

Stock Research and Analysis

by Dan Wasiolek

Bulls Say

Hyatt is well positioned to benefit from the increasing presence of the next-generation traveler through emerging brands Hyatt Place and Hyatt Hotel.
Since 2009 and through 2014 industry supply is up by mid-single digits while demand is up over 20% supporting an elongated cycle of strong RevPAR growth.
Hyatt is only 20% and 40% the room size of Marriott and Starwood, respectively, and is seeing good expansion into international markets like Asia-Pacific with 2014 room growth of 11.3% the region represents 16% and 31% of total rooms and pipeline. Read more 

Bears Say

Independent hotels and home and vacation rentals present an increasing competitive threat, and the advancement of technology and its use by next-generation travelers increases the access to and awareness of these properties.
Hyatt’s ROIC has averaged in the low single digits the last five years, significantly lower than ROICs for key competitors.
The Pritzker family owns 58% of shares outstanding and 75% of voting interest, making it nearly impossible for minority shareholders to dictate change at the company. Read more 

Management

Hyatt, founded by Jay Pritzker in 1957, is still under significant influence from the Pritzker family. CEO Mark Hoplamazian has been at the helm since December 2006 and also serves as vice president of the Pritzker Organization, an advisory firm run   Read more 

Profile

Hyatt is an operator of 587 owned, managed, and franchised properties across 11 upscale luxury brands as of year-end 2014. Luxury brands are Park Hyatt, Andaz, and Grand   Read more 

When Dividend Yield Isn't Enough 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.