Marriott, Wyndham Hotels and Hyatt roll out Q4 results for hotel companies this week, with their stocks near buy points. Analysts will be closely watching room night forecasts, as well as revenue per available room growth. Meanwhile, Hyatt on Monday announced it agreed to purchase all-inclusive resort operator Playa.
Hyatt Hotels on Monday reported it agreed to purchase the remaining outstanding shares of Playa Hotels & Resorts, which owns and operates a number of all-inclusive resorts in Mexico, the Dominican Republic and Jamaica. Prior to Monday's announcement, Hyatt owned a 9.4% stake in Playa.
Hyatt plans to pay $13.50 per share, or about $2.6 billion, including about $900 million of debt, net of cash. The hotel giant said the acquisition provides an opportunity to secure long-term management agreements for its all-inclusive properties, Hyatt Ziva and Hyatt Zilara. The deal will also expand Hyatt's distribution channels, including ALG Vacations and Unlimited Vacation Club, to Playa's portfolio, offering additional benefits to guests at Playa hotels.
Hyatt said it remains committed to its asset-light model and intends to find third-party buyers for Playa's owned properties. Once the transaction closes, Hyatt expects to realize at least $2 billion of proceeds from asset sales by the end of 2027. The company predicts asset-light earnings to exceed 90% on a pro forma basis in 2027.
Hyatt expects to fund the transaction with new debt financing and expects to pay down over 80% of the new debt financing with proceeds from asset sales. The transaction is expected to close later this year, subject to approval from Playa shareholders and regulators.
For Hyatt's earnings Thursday, analysts expect a 17% earnings increase to 75 cents per share on a slight decline in revenue to $1.655 billion.
Hyatt shares eased 1% Monday. H stock is trading below a 168.20 buy point for a cup base, also matching its record high. Hyatt flashed an early entry Thursday, following earnings from rival Hilton Worldwide.
PLYA stock swung 2.3% higher Monday. The move pushed shares to all-time highs and cleared the previous record of 13.15 from Feb. 6.
Marriott
Marriott early Tuesday is expected to report a 33% decline in earnings to $2.39 per share on 5% revenue growth to $6.4 billion.
MAR stock is trading in a buy zone, above a 295.45 buy point for a flat base. Marriott shares broke out Thursday and hit a record high of 307.52 on Friday. Shares inched up Monday.
Wyndham Hotels
FactSet predicts Wyndham Hotels late Wednesday will report a 9% increase in earnings while revenue grows 7%.
WH stock is trading above a 105.16 buy point for a flat base, after breaking out in late January.
The current buy zone, which stretches 5% beyond the buy point, extends to 110.41.
Wyndham shares eased less than 1% Monday.
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