Truist Reiterates Buy Rating on Hyatt Hotels (H) Following Playa Divestment

Truist Securities analyst C. Patrick Scholes reiterated a Buy rating and $140.00 price target on Hyatt Hotels (NYSE: H).

The analyst commented: "Quickly back to asset-lite with $8/sh potential accretion; This morning, Hyatt announced plans to divest the Playa owned real estate portfolio for $2.0B to Tortuga, a joint venture of KSL Capital Partners (private, well-regarded private equity in greater travel and leisure space) and Rodina (private, a Mexican family office) while retaining long-term management contracts. Impressively, this announcement comes less than two weeks after Hyatt completed the acquisition of the former PLYA for ~ $2.6B and long before H's goal of divesting the PLYA real estate by YE 2027. While not a “done deal” at this moment, an announcement to sell all of the real estate this soon after the closing is quicker than we and investors would have expected as the general expectation was that the company would sell the hotels individually over the next year. As discussed further, the real estate sale itself does not represent massive upside (the real estate is just one part of the overall transaction) however the completion --expected by the end of 2025 following regulatory approval in Mexico-- will quickly remove several downside risks to Hyatt stock and support investor sentiment on Hyatt maintaining its status as a growing, low leverage assetlite company. While we/investors assumed Hyatt had long been engaged in discussions for divesting the PLYA assets, there was of course no certainty that Hyatt could sell the assets particularly in a time of macro volatility."

For an analyst ratings summary and ratings history on Hyatt Hotels click here. For more ratings news on Hyatt Hotels click here.

Shares of Hyatt Hotels closed at $139.65 yesterday.

You May Also Be Interested In

• Redwood AI acquires Quantum.IQ in an all-share deal
• Bitwise partners with Superstate to explore tokenized ETF shares
• BIO-key posts 13% revenue gain and narrower Q2 net loss