One-glance verdict
Within fair range
$114.06 our estimate vs market $171.96
Wall Street consensus: $196.44 (72.2% higher than our fair-value estimate)
51% above our estimate
Fundamentals snapshot
Hyatt Hotels Corporation
H · NYQ · Consumer Cyclical · Lodging
Current price
$171.96
52-week range
$134.18 - $206.86
Market cap
$16.20B
Balance sheet
Stretched
1.51x Concerning
Net debt $3.90B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.7% last year.
- Reward Free cash flow was positive in 9/10 years.
- Risk Stock trades 549.0% above its 5-year average P/E.
- Risk Net debt grew 62.7% over 3 years.
What this company does
Hyatt Hotels Corporation
Hyatt Hotels Corporation is like a big hotel company that owns, manages, and licenses hotels and vacation spots under many familiar names you see when you travel. Most of its money comes from fees it earns when its hotels are managed or franchised (meaning other people own and run the hotels but pay Hyatt to use its brand and systems), which helps create predictable income. This model is important because it means Hyatt doesn't have to spend as much of its own money to build new hotels, allowing it to focus on growing its brands and guest services.
How the company got here
Hyatt Hotels Corporation started in 1957 when Jack and Donald Pritzker bought the Hyatt House motel near Los Angeles International Airport. They quickly expanded, focusing on creating memorable guest experiences. A major turning point was going public in 1962, which provided capital for further growth and acquisitions. Over the decades, Hyatt has strategically acquired and developed brands to cater to different traveler needs, evolving from a single motel to a global hospitality powerhouse.
What it actually does
Hyatt operates hotels and resorts around the world, offering a place for people to stay when they travel for business or leisure. Think of it as providing rooms, food, and services for travelers. They manage many of these properties themselves, while also partnering with owners who use the Hyatt name and standards for their own hotels. Hyatt makes money from guests paying for rooms, food, and other services, as well as fees from managing and franchising hotels.
Management and Franchising
This is a major part of Hyatt's business where they lend their well-known brand names (like Grand Hyatt or Hyatt Regency) to hotel owners. Hyatt provides expertise in running the hotel, marketing, and customer service, and in return, the owners pay Hyatt fees. This segment is significant because it allows Hyatt to grow its presence globally without directly owning every property, spreading the risk and capital investment.
Owned and Leased
In this segment, Hyatt directly owns or leases the hotels and resorts themselves. This means Hyatt takes on more financial responsibility for the property's operations, maintenance, and performance. While this can lead to higher profits if the hotels do well, it also means greater risk if the properties underperform. This part of the business gives Hyatt direct control over the guest experience and operational efficiency.
Distribution
This segment focuses on the systems and services that help guests book their stays and manage reservations across Hyatt's vast network of properties. It includes the technology behind their website and app, as well as the World of Hyatt loyalty program. The loyalty program encourages repeat business by rewarding frequent guests with points they can use for free nights or other perks, fostering customer loyalty.
What management is betting on now
Hyatt is focused on expanding its portfolio of brands, particularly in the luxury and lifestyle segments, to attract a wider range of travelers. They are also investing in their loyalty program, World of Hyatt, to deepen relationships with guests and encourage repeat bookings. Additionally, Hyatt is prioritizing growth in select-service and extended-stay brands, which tend to be more resilient during economic downturns and offer consistent returns.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-64.00M
FY2024 Q4
$184.00M
FY2025 Q1
$123.00M
FY2025 Q2
$-111.00M
FY2025 Q3
$-89.00M
FY2025 Q4
$236.00M
FY2026 Q1
$77.00M
FY2026 Q2
$28.00M
Revenue
$1.83B
Net income
$110.00M
Diluted EPS
1.14
Operating cash flow
$50.00M
Free cash flow
$28.00M
Fetching…
Sources
Revenue
$1.75B
Net income
$38.00M
Diluted EPS
0.40
Operating cash flow
$100.00M
Free cash flow
$77.00M
Fetching…
Sources
Revenue
$1.79B
Net income
$-20.00M
Diluted EPS
-0.20
Operating cash flow
$313.00M
Free cash flow
$236.00M
Fetching…
Sources
Revenue
$1.79B
Net income
$-49.00M
Diluted EPS
-0.51
Operating cash flow
$-20.00M
Free cash flow
$-89.00M
Fetching…
Sources
Revenue
$1.81B
Net income
$-3.00M
Diluted EPS
-0.03
Operating cash flow
$-67.00M
Free cash flow
$-111.00M
Fetching…
Sources
Revenue
$1.72B
Net income
$20.00M
Diluted EPS
0.19
Operating cash flow
$153.00M
Free cash flow
$123.00M
Fetching…
Sources
Revenue
$1.60B
Net income
$-56.00M
Diluted EPS
-0.37
Operating cash flow
$235.00M
Free cash flow
$184.00M
Fetching…
Sources
Revenue
$1.63B
Net income
$471.00M
Diluted EPS
4.63
Operating cash flow
$-21.00M
Free cash flow
$-64.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $114.06 vs current price $171.96
Wall Street consensus is the average analyst price target: $196.44 (72.2% higher than our fair-value estimate).
Our most-likely fair value is $114.06 a share — about 33.7% away from today's price of $171.96, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $3.9B. Interest coverage 1.5x.
Net debt
$3.90B
Interest coverage
1.51x
Hyatt Hotels Corporation's profit covers its interest bill about 1.5 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
H
BASELINE
Hyatt Hotels Corporation
Total debt $4.51B Interest coverage 1.51x This is the baseline the peer rows are being compared against.
Total debt $17.77B Interest coverage 5.12x +239% vs H Carries about 3.4x more debt cushion than H.
Total debt $14.02B Interest coverage 4.34x +187% vs H Carries about 2.9x more debt cushion than H.
Total debt $4.55B Interest coverage 6.23x +312% vs H Carries about 4.1x more debt cushion than H.
Total debt $12.34B Interest coverage 1.93x +28% vs H Carries about 1.3x more debt cushion than H.
What you should know
The case for and against H
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.7% last year.
-
Free cash flow was positive in 9/10 years.
-
Dividend yield is 0.3% with 9-year payout history.
Risks
-
Stock trades 549.0% above its 5-year average P/E.
-
Net debt grew 62.7% over 3 years.
-
Insider ownership is only 3.4% (peer median: 10.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
212.30x
Forward P/E
35.36x
P/B
4.90x
P/S
4.79x
EV/EBITDA
24.50x
PEG ratio
1.09x
Profitability
How much profit each dollar creates
Gross margin
43.4%
Operating margin
16.7%
Net margin
2.3%
ROE
2.2%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
1.24x
Current ratio
0.62x
Quick ratio
0.52x
Total debt
$4.51B
Total cash
$606.00M
Growth
How the business has been compounding
Revenue TTM
$7.15B
Revenue 5Y CAGR
23.7%
EPS TTM
0.81
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$443.00M
Free CF TTM
$159.00M
FCF margin
2.2%
Dividend
Shareholder payout
Yield
0.4%
Payout ratio
74.1%
Last ex-div date
2026-08-27