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Investing.com -- Deutsche Bank upgraded Hyatt Hotels (NYSE:H) to Buy from Hold, pointing to a stronger catalyst path than peers in the lodging sector and upside from asset sales, a potential credit card renegotiation, and premium exposure to high-performing segments.
The brokerage said Hyatt stands out as the most attractive name in its coverage universe, supported by a shift toward a more fee-based business model and added contributions from its Playa Hotels & Resorts (NASDAQ:PLYA) stake.
Deutsche Bank (ETR:DBKGn) estimates Playa’s impact at roughly $4 per share and sees further value if Hyatt divests more owned properties.
Analyst Steven Pizzella also flagged a potential renegotiation of Hyatt’s credit card partnership, which could add between $6 and $9 per share.
Analyst expects Hyatt to move closer to a 90% fee-based revenue mix, bringing it more in line with Marriott and Hilton, yet still trading at a discount to both.
Hyatt’s footprint in luxury and urban markets, which have led in revenue per available room (RevPAR) growth, is another point of strength as the broader U.S. lodging recovery moderates.
Among other hotel stocks, Deutsche Bank said it prefers Wyndham over Choice Hotels (NYSE:CHH), citing stronger net unit growth and more favorable valuation.