Raymond James bumps Hyatt rating as $2 bln resort sale eases balance sheet worries
Investing.com -- Raymond James on Tuesday upgraded Hyatt Hotels Corp to Strong buy and lifted its price target to $165, saying a $2 billion deal to offload recently acquired Playa Hotels & Resorts real‑estate assets removes a “significant overhang” on the stock.
Hyatt shares were up about 5% Tuesday at $146 in trading.
Invest in Gold
American Hartford Gold: #1 Precious Metals Dealer in the Nation
Learn More
Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase
Learn More
Thor Metals Group: Best Overall Gold IRA
Learn More Powered by Money.com - Yahoo may earn commission from the links above.RJ said the agreement to sell all 15 Playa resorts to Tortuga Resorts, a joint venture between KSL Capital Partners and Mexico’s Rodina, came sooner than expected, covered the full portfolio and accelerates Hyatt’s target of raising $2 billion from asset sales by 2027.
The deal values the properties at roughly eight times forecast 2024 earnings before interest, tax, depreciation and amortisation and is due to close before year‑end 2025.
Raymond James wrote that the transaction “removes a significant overhang on the stock” and praised management’s execution despite macro‑economic uncertainty.
It called investors’ muted initial reaction “a bit of a head‑scratcher,” arguing progress on disposals was more important than the sale multiple.
The broker noted Hyatt now trades about 2.5 EBITDA turns below Marriott International (NASDAQ:MAR.O) and five turns below Hilton Worldwide (NYSE:HLT) even though more than 90% of Hyatt’s earnings are expected to come from fee‑based, asset‑light operations by 2027.
Hyatt has lagged Marriott by nine percentage points and Hilton by 19 points so far this year, it added.
Following the divestiture, Hyatt’s net purchase price for Playa’s management contracts falls to roughly $555 million, or about nine times projected 2026 EBITDA, with a potential $143 million earn‑out tied to performance.
The company will keep $200 million of preferred equity in the venture and retain 50‑year management agreements on 13 of the resorts, preserving fee income while lightening its balance sheet.
Hyatt bought Playa for $2.6 billion only two weeks ago to expand in the fast‑growing all‑inclusive segment. The swift flip of the bricks‑and‑mortar assets “underscores management’s commitment to an asset‑light strategy,” Raymond James said.
Related articles
Raymond James bumps Hyatt rating as $2 bln resort sale eases balance sheet worries
Nuclear microreactor stocks fall after DOE selects Westinghouse, Radiant for tests
Citi sees upside for Trade Desk into Q2 results, adds on a catalyst watch
这篇报道揭示了Raymond James调整Hyatt酒店的评级，反映了高达20亿美元度假村销售帮助该集团减轻了对其资产负债表的关注，这一举措表明市场对HYATT的财务健康持乐观态度正在转变中。无疑问, Hytt的正向动作对公司信用状况和投资者信心的增强产生了积极影响。
The downgrade by Raymond James in Hyatt's rating signals reassurance amid a successful $2 billion resort sale that reduces balance sheet concerns, indicating strategic progress even with ratings adjustments.
The recent $2 billion sale of legendary resorts by the Managers Group to an undisclosed developer eases balance sheet concerns and highlights Raymond James’ positive adjustment in its rating outlook for Hyatt.
This adjustment in Raymond James' rating of Hyatt Hotels Corporation emphasizes the positive impact that a potential $2 billion resort sale can have on easing investors’ concerns regarding its balance sheet.
The reassessment of Hyatt's rating by Raymond James highlights the significance for investors, as an anticipated $2 billion resort sale helps reduce balance sheet concerns and provides a potential relief to CORPORATE stability.
This Raymond James upgrade of Hyatt's rating following the $2 billion resort sale hints at improved financial stability for a company previously burdened by balance sheet concerns, further signaling positive momentum in their hospitality portfolio.
这是一项值得关注的市场动态，Raymond James将Hyatt酒店的评级上调显示出市场对其2亿美元度假村出售交易的积极反应及对该公司资信状况改善的认可，这可能为房地产市场的复苏信号提供又一支撑点在现代投资者的考量中又增添一重自信和乐观的因素选择在当下进行不良资产重组或卖出以优化资本结构的策略表现得尤为明智而其成效亦显现于资本市场即时反映之上再次印证了灵活适应与反转契机是企业稳健发展的关键行动之一
The downgraded rating by Raymond James on Hyatt reflects positively as the resort's $2 billion sale eases concerns over its balance sheet, suggesting strategic moves to bolster financial stability for both buyer and seller.
