Tag: Hyatts

  • Hyatt’s Stock Up 20%, What’s Next?


    Hyatt Hotels Corporation stock (NYSE: H) has gained close to 19% since the beginning of 2024, compared to a 22% return of the S&P 500 over the same period. In comparison, its peer Marriott International (NASDAQ:MAR) stock is up about 24% over the same period. So what is happening with Hyatt Stock?

    Hyatt’s Q3 2024 performance reflected mixed signals for the hospitality industry. Its total revenues remained flat year-over-year (y-o-y) at $1.6 billion in Q3 2024, with comparable system-wide all-inclusive resorts experiencing a 0.9% decline in Net Package revenue per available room (RevPAR). While the company reported a 3% year-over-year (y-o-y) increase in comparable system-wide RevPAR, this growth rate decelerated compared to the previous quarters. The company’s comparable system-wide RevPAR grew 4.7% y-o-y in Q2 2024 and 5.5% y-o-y growth in Q1 2024. Despite regional challenges, particularly in Greater China, Hyatt’s European operations drove growth in Q3. The company also achieved net room growth of 4.3% during the quarter. Looking ahead, Hyatt forecasts continued growth, with projected RevPAR increases of 3.0% to 4.0% and net room growth of 7.75% to 8.25% for FY 2024. In addition, the company’s adjusted EBITDA is expected to land in a range of $1.10 billion to 1.12 billion in FY 2024 compared to $1.03 billion in FY 2023. Separately, if you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.

    Hyatt’s business model is centered on fee-based revenue, licensing, and services, leveraging its brand and intellectual property through partnerships with third-party owners and franchisees. The company’s growth strategy is yielding results, with 16 new hotels and 2,589 rooms added in Q3 2024. Hyatt’s pipeline has expanded 10% y-o-y to 135K rooms, positioning the company for continued growth. In line with its strategic objectives, Hyatt expects fee-based revenues to drive earnings, targeting over 80% of earnings from fees by 2025. For FY 2024, the company forecasts fee-based revenues of $1.085 billion to $1.11 billion, representing a 13% increase at the midpoint.

    Overall, H stock performance over the last 4-year period has been far from consistent and has largely been as volatile as the S&P 500. Returns for the stock were 29% in 2021, -6% in 2022, 45% in 2023, and 21% in 2024. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, is less volatile. And it has comfortably outperformed the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.

    It is helpful to see how its peers stack up. Check out how Hyatt’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.

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    Hyatt’s Stock Up 20%, What’s Next?

    After a significant jump in Hyatt’s stock price, investors are left wondering what’s next for the hospitality giant. With travel restrictions easing and a surge in demand for leisure travel, Hyatt has seen a boost in bookings and revenue.

    But will this upward trend continue? Analysts are optimistic about Hyatt’s future prospects, citing strong consumer confidence and a rebound in corporate travel. Additionally, the company’s focus on sustainable practices and innovative technology solutions has positioned them well for long-term success.

    However, challenges still remain, including ongoing concerns about the Delta variant and potential supply chain disruptions. It will be crucial for Hyatt to navigate these obstacles while continuing to adapt to the changing landscape of the travel industry.

    Overall, the future looks promising for Hyatt, but only time will tell if they can sustain this momentum. Investors should keep a close eye on the company’s performance and industry trends to gauge what’s next for Hyatt’s stock price.

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  • A Chat with Hyatt’s Mark Benson


    Aerial view of Secrets Tulum Resort & Beach Club.

    As we look ahead to 2025, the all-inclusive industry continues to evolve, presenting new opportunities and innovations that reshape the landscape of vacation experiences. In a recent interview with Recommend, Mark Benson, Associate VP of Sales & Strategy for Hyatt’s Inclusive Collection, shared insights into emerging trends that will transform how travelers experience all-inclusive resorts and how travel advisors can best take advantage of Hyatt’s offer.

    New Destinations and All-Inclusive Resort Concepts

    Mark Benson moderating a travel trends panel during the recent Confidant Connect LIVE held at Secrets Tulum Resort & Beach Club.

    According to Benson, one of Hyatt’s primary trends for 2025 is the development of new destinations and resort concepts. “For us and our brands, the trend is certainly new destinations, new resorts, new builds,” Benson explains. This focus on expansion and innovation reflects the industry’s ongoing commitment to meeting changing traveler preferences and expectations.

    Over the past five to six years, Benson’s company has been dedicated to creating what he calls “shiny things on the hill.” This metaphor encapsulates their strategy of developing standout properties and experiences that capture travelers’ imaginations.

    Reinventing the All-Inclusive

    As the travel industry moves forward, there’s a growing emphasis on experiential offerings within the all-inclusive model. Benson notes, “And by experiential I don’t mean sort of jumping off cliffs and paragliding and whatever, but experiential in different, different ways to enjoy an all-inclusive vacation.”

    Rendering of Il Mare at Dreams Curaçao Resort, Spa & Casino.

    One of the most intriguing developments Benson shared is the recent launch of Il Mare, a groundbreaking concept that promises to redefine the all-inclusive experience. Opened in December 2024, Il Mare is described as “a series of 52 individual bungalows” that will be integrated into the Dreams Curaçao Resort, Spa & Casino as a resort within a resort.

    Benson adds, “The bungalows are exclusive. If you’re staying in other parts of the resort, you can’t come in. They have their own restaurant, swimming pool, beach area, etc.” Il Mare will offer guests access to all the amenities of Dreams Curacao and the other Hyatt property next door, Zoetry Curaçao Resort & Spa, while providing elevated privacy and personalized services, but not vice versa. “Bookings are through the roof,” he emphasizes.

    Similarly, Secrets Tulum Resort & Beach Club recently opened Casa Zamna, a 21-room “boutique enclave” at the resort’s beach club. The concept is the same: Secrets guests can go to the beach club but don’t have access to Casa Zamna’s restaurant or separate beach area, but Casa Zamna guests are welcome to everything Secrets offers.

    “Another great example is at Dreams Sapphire Riviera Cancun. We’ve just opened a section there called Indigo, which is, again, a resort within a resort. But what is so significant is that we’ve got 10 all-inclusive villas. These are great for families; they have two bedrooms and can sleep up to eight people. And again, you have all the benefits of an all-inclusive resort, but you’ve got your own villa.”

    Creating Something New

    “[The resort within a resort] offers a different angle for an all-inclusive vacation while still having all the benefits of the resort. So, you know, we’re creating our new trends,” Benson adds. And there’s more.

    Rendering of the Spa pool at Secrets Baby Beach Aruba.

    “Going into Aruba is creating something completely new. There are a handful of all-inclusive resorts, as you know, in the north of Aruba, around Eagle Beach and Palm Beach, but there’s nothing in the south of the island. We’re breaking completely new ground. We couldn’t have opened an all-inclusive resort in the north of the island because the government doesn’t allow any more all-inclusive resorts. A couple are there already, but they want to keep it as an EP destination. But in the south, in Baby Beach, we got permission and can build an all-inclusive resort because it’s a little bit more isolated. It will create a completely new market for Aruba, which is one we’re very excited about. So, again, we’re a trendsetter.”

    “To summarize, what we’re doing is expanding, being very faithful to our brand footprints and developing within that new brands, new concepts and new ways to enjoy your vacation. Your clients will always see something new, year after year. You need to reinvent and refresh yourself. Within the coming year we’ll be opening a new angle on existing resorts.”

    Luxury Continues to Trend

    As the positive response to the premium resort within a resort brand shows, luxury sales are not slowing down. “There’s always that element of the high-end luxury market, which is more impervious to economic, political, or social issues. It tends to be self-sustaining during a crisis,” explains Benson.

    “It’s the one that survives if you like. And even after the pandemic, when we started opening the hotels, we were filling up from the top down. We weren’t filling from the bottom up. [We have] very healthy ADRs and can increase rates against demand and maintain them. And, remember: The cost of running an all-inclusive—a luxury all-inclusive—is very different than a luxury EP resort. We’ve been able to maintain the standard and deliver on that extra that we promised. We’ve done excellently and still fill very much from the top down.”

    Selling the Many Faces of Hyatt’s Inclusive Collection

    If you’re an advisor who’s just now dipping your toes into Hyatt’s Inclusive Collection, it might seem a bit daunting at first, but know you’re not alone.  ”We have ten brands in total,” says Benson. “Ten brands are a lot of brands. Each of those brands has its own strong identity. I think the way that we differentiate the brands is really how we approach the advisor and the training for each brand. There are undoubtedly similarities between what we offer and what some of our competitors offer, but not all of them.”

    Benson explains that advisor education is key to brand differentiation—and sales. “That’s fundamental to our success. The Confidant Learning program, the training modules within that on all our individual brands, the fun interactive training, not droning through and answering questions.”

    The best way to start? In a nutshell: “Pick your brand, specialize in that, learn it. Get all the training resources you can. In the case of us, we’ve got extensive training resources. And find out who your BDM is. Go to their webinars, go to their cocktail events. Use the resources that are there for you to use. And FAM trips, absolutely the FAM trips. And? Learn that market. Know geography. Buy a globe, buy an atlas. Learn the globe, learn everything, even if it’s countries that you’re not going to be sending people to. You want to give that impression that you really know what you’re talking about, so look and learn about the countries on the map.”

    For more information, visit hyattinclusivecollection.com/en/travel-advisors/.



    Recently, I had the opportunity to sit down and chat with Mark Benson, the Senior Vice President of Global Operations for Hyatt Hotels Corporation. We talked about the challenges and successes of the hospitality industry, as well as what sets Hyatt apart from other hotel chains.

    Mark shared insights into how Hyatt is constantly evolving and adapting to meet the changing needs and preferences of their guests. He emphasized the importance of providing exceptional customer service and creating memorable experiences for every guest who walks through their doors.

    We also discussed Hyatt’s commitment to sustainability and how they are working to reduce their environmental impact through initiatives such as reducing water usage and waste, and using renewable energy sources.

    Overall, it was a fascinating and enlightening conversation with Mark Benson, and it’s clear that Hyatt is dedicated to providing top-notch hospitality experiences while also being mindful of their impact on the environment. I can’t wait to see what innovative ideas and initiatives they come up with next!

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