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Investing.com -- JPMorgan initiated coverage of Hyatt with an Overweight rating, saying the hotel operator has room for its valuation to climb as it moves toward a more asset-light model and delivers some of the fastest unit growth among large lodging C Corps.
The bank set a $178 price target, implying about 15% upside.
The brokerage said Hyatt trades at roughly 14x forward EV/EBITDA, a discount of 2 to 4 turns to larger peers Marriott and Hilton.
Analysts expect that gap to close as Hyatt lifts its mix of fee-based earnings to more than 90 percent by 2027, which they said should improve free cash flow conversion.
They also highlighted Hyatt’s industry leading net unit growth of 6 to 7 percent a year, with 2026 likely to land at the upper end of that range.
JPMorgan expects Hyatt to continue selling owned hotels over time. It values that portfolio at about $2 billion, excluding the Playa stake, and said ongoing sales should support capital returns.
Analysts also flagged Hyatt’s heavy exposure to luxury and upper upscale rooms and its international footprint, arguing that high-end and overseas travel demand should remain stronger than domestic averages.
The bank expects US RevPAR to rise in the low single digits in 2026. It cited easier comparisons in the second quarter, demand tied to the 2026 World Cup, potential pro consumer policies ahead of the midterm elections and limited new supply.
JPMorgan’s year end 2026 target is based on a blended 14x multiple of 2027 EBITDA plus about $5 a share of additional value tied to Hyatt’s equity stakes.
Its estimates call for 2026 RevPAR growth of 2.1 percent, net unit growth of 6.4 percent and adjusted EBITDA of $1.26 billion.
"We believe Hyatt’s recent credit card renewal could be a driver of fee upside for years to come," analyst at JPM