JP Morgan Is a Bit More Enthused About Hyatt
Skift Take
- Financial markets showed mixed performance with the DJIA, Nasdaq, and S&P 500 rising while the 10-year treasury yield also increased.
- JP Morgan expressed optimism about Hyatt's future, anticipating growth in RevPAR and an asset-light business model.
- Various hotel-related developments were reported, including property sales, renovations, and new openings, with several companies expanding their portfolios.
The DJIA rose 87 points, the Nasdaq was up 156, the S&P 500 rose 30 points, and the 10-year treasury yield was up .03 to 4.29%. Lodging stocks were mixed. BHR was up 7%, but that was the only big gainer. SOND was down -8%, AHT was down -6%, and SHCO was down -5% today.
JP Morgan reported on investor meetings they held with Hyatt. JPM said they came away incrementally enthused about Hyatt and its multi-year opportunities and transformation to an increasingly asset-light business model. Hyatt said the seasonally driven transition to group and individual business transient travel mix is starting in the U.S. and should replace leisure for the balance of 3Q23 and 4Q23, accelerating RevPAR growth relative to the summer. U.S. group occupancy is currently at 1,000 basis points below 2019 levels. In the near to medium term, Hyatt conveyed confidence in sustaining above-peer net rooms growth and growing fees
