Sep. 24 at 11:15 AM
$H
Hyatt is fundamentally a good business with strong brands, loyal customers, and experienced management. The transformation from asset-heavy to asset-light makes strategic sense and could unlock significant value over time.
However, the current price of
$138.49 appears to assume everything goes perfectly. Our DCF analysis suggests a fair value between
$17.90-
$105.45, with the wide range reflecting the uncertainty inherent in this transformation story.
The Bottom Line: Hyatt could be a compelling investment at the right price, but that price is probably 20-30% below current levels. The debt burden is real, the competition is fierce, and the execution risk is significant.
https://stratafinance.beehiiv.com/p/hyatt
