Asia FX dithers as dollar steadies before Powell speech; yen muted after CPI data
On Wednesday, Bernstein SocGen Group maintained its positive stance on Hyatt Hotels Corporation (NYSE:H), reiterating an Outperform rating and a price target of $173.00. With the stock currently trading at $138.57, analysts see potential upside, with price targets ranging from $145 to $201. According to InvestingPro data, the company maintains a "GOOD" overall financial health score. The announcement came in light of Hyatt’s introduction of a new brand, Hyatt Select, which targets the Upper Midscale segment in the Americas.
Hyatt Select is designed as a conversion-focused select service brand and marks the company’s third venture into the Upper Midscale market following Hyatt Studios, which opened its first property on February 18, 2025, and UrCove, aimed specifically at the Chinese market. The new brand aims to cater to short stays for business or leisure travelers in secondary or tertiary markets, where Hyatt’s current presence is minimal. This expansion comes as Hyatt maintains solid financials, with a gross profit margin of 42.5% and annual revenue of $3.3 billion.
This strategy mirrors similar moves by competitors such as Hilton’s Spark, Marriott’s Four Points Flex/City Express, and IHG’s Garner, which have all targeted conversion opportunities from smaller brands across the Americas. Hyatt’s strong loyalty programs, brand recognition, and commercial engines give it an edge in attracting conversions from these smaller peers.
Hyatt Select is positioned slightly above its competitors’ offerings in the same category, reflecting the company’s intention to fill a wider ’white space’ in its portfolio. Additionally, the brand could provide a rebranding solution for some of the older Hyatt Place & Hyatt House hotels, which may not meet the Upscale brand standards but could transition to the Upper Midscale brand instead of exiting the Hyatt system altogether.
In other recent news, Hydro One Limited (TSX:H) reported a steady increase in its fourth-quarter 2024 earnings, with basic earnings per share (EPS) rising to $0.33 from $0.30 in the same quarter last year. The company’s full-year EPS reached $1.93, up from $1.81 in 2023, with net income growing by 6.5% for the year. Hydro One achieved $150 million in productivity savings and completed major infrastructure projects ahead of schedule and under budget. The company has revised its EPS outlook for 2027 upwards, anticipating an annualized growth rate of 6-8%, driven by ongoing infrastructure projects and potential growth from nuclear infrastructure initiatives.
Additionally, Hydro One announced an agreement to purchase a 48% interest in the East West High Transmission line for $257 million, which is expected to be accretive to earnings and enhance its support for electrification efforts in Northern Ontario. The transaction is anticipated to close in the first half of 2025. Analysts from Jefferies LLC and RBC Capital Markets have shown interest in Hydro One’s productivity gains and strategic acquisitions, reflecting cautious optimism about the company’s financial trajectory. Hydro One’s management has expressed confidence in maintaining momentum, with plans to file its next joint rate application in the fall of 2026. These developments highlight Hydro One’s proactive approach to growth and operational efficiency, despite broader economic uncertainties.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.