Hyatt Earnings: Sturdy Travel Demand Underpins Solid Results, While Prudent Asset Sales Continue

We plan to raise our $127 fair value estimate for narrow-moat Hyatt Hotels by a mid-single-digit percentage to reflect strong 2023 results and a 2024 outlook that is more optimistic than we anticipated, buoyed by steady travel demand but slightly moderated by lower net room growth. We suspect solid results and the successful execution of the asset sale strategy, particularly with the disposal of Unlimited Vacation Club, propelled a low-double-digit pop in the stock price, rendering the shares fairly valued.