What’s Happening With Hyatt Stock?

Hyatt stock has rallied by almost 24% year-to-date, outperforming the broader S&P500 which remains up by about 17% over the same period. There are a couple of trends driving the recent price appreciation for Hyatt stock. Travel and leisure demand has remained robust, despite concerns about the global economy. Over Q2 2023, Hyatt saw its comparable system-wide revenue per available room increase by a solid 15% year-over-year, driven by rising occupancy levels and higher average room rates. The company’s operations in Asia were the biggest drivers of growth, led by China, which eased its Covid-19-related travel restrictions late last year. The North American business also saw revenue grow by about 5%, led by strong leisure travel demand, as people continue to prioritize spending on experiences over goods. Business travel demand has also been strong with the large convention hotels also seeing a rebound. Overall, Hyatt saw its adjusted earnings for Q2 2023 rise to $$0.82 per share, compared to $0.46 in the year-ago quarter.

Notably, H stock had a Sharpe Ratio of 0.5 since early 2017, which is lower than the figure of 0.6 for the S&P 500 Index over the same period. Compare this with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.