Bank of America just raised its EUR/USD forecast
Investing.com - Hyatt Hotels (NYSE:H) stock, with a market capitalization of $13.85 billion, is rising after Truist Securities reiterated its Buy rating and $140.00 price target following the company’s announcement to divest its Playa owned real estate portfolio. According to InvestingPro data, the stock currently trades at a P/E ratio of 17.97x.
Hyatt plans to sell the portfolio for $2.0 billion to Tortuga, a joint venture between KSL Capital Partners (WA:CPAP) and Rodina, while maintaining long-term management contracts. The announcement comes less than two weeks after Hyatt completed its acquisition of Playa for approximately $2.6 billion. With a debt-to-equity ratio of 1.33, the company operates with moderate leverage levels.
The divestiture timeline significantly outpaces Hyatt’s original goal of selling the Playa real estate by the end of 2027. Market expectations had been for individual property sales spread over the next year rather than a single transaction.
Truist Securities notes that while the real estate sale itself doesn’t represent "massive upside," the completion of the deal—expected by the end of 2025 pending regulatory approval in Mexico—will remove several downside risks to Hyatt stock.
The transaction supports Hyatt’s strategy to maintain its position as a "growing, low leverage asset-lite company," which Truist believes will positively impact investor sentiment despite the current macroeconomic volatility.
In other recent news, Hyatt Hotels has announced significant developments concerning its acquisition and subsequent sale of Playa Hotels & Resorts’ real estate portfolio. Hyatt completed the acquisition of Playa Hotels & Resorts for $2.6 billion, adding 15 all-inclusive resorts across Mexico, the Dominican Republic, and Jamaica to its portfolio. Shortly after, Hyatt entered into a definitive agreement to sell the entire real estate portfolio acquired from Playa for $2 billion to Tortuga Resorts, a joint venture between KSL Capital Partners and Rodina. The transaction includes a $200 million preferred equity interest retained by Hyatt and is expected to close before the end of 2025. This sale aligns with Hyatt’s strategy to divest $2 billion in assets by 2027. Analysts at Bernstein reiterated an Outperform rating for Hyatt, while Citi maintained a Neutral rating, viewing the transaction positively due to its size and swift execution. Stifel raised its price target for Hyatt to $149 from $130, maintaining a Hold rating. Hyatt expects to earn $60 to $65 million of Adjusted EBITDA by 2027 as a result of these transactions.
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