Benzinga | Dec 14, 2021 11:05AM EST

Hyatt Hotels Trading At 'Unjustified' Discount, Set To Grow More Than Peers: Analyst

Hyatt Hotels Corporation (NYSE:H) is the fastest growing hotel group and its stock is currently trading at "an unjustified discount," according to a Bernstein Research analyst.

The Hyatt Hotels Analyst: Richard Clarke initiated coverage of Hyatt Hotels with an Outperform rating and a price target of $105.

The Hyatt Hotels Thesis: The company has doubled the number of hotel rooms since its IPO in 2009 and has grown from 7 to 23 portfolio brands, Clarke said in the initiation note.

"While Hyatt has just ~1% hotel market share today, it accounts for ~4% of the global development pipeline, 15% of global luxury hotel rooms (>20% of the pipeline), and over 1/3 of Asia Pacific's luxury & upscale hotel pipeline," he wrote.

"In the last five years, Hyatt delivered an organic net system growth CAGR of >7%," ahead of Hilton Hotels Corporation's (NYSE:HLT) 6% and Marriott International Inc's (NASDAQ:MAR) +5% CAGR, the analyst mentioned.

"This has continued through the pandemic, with Hyatt set to grow fastest in 2021, and has a current pipeline >40% of its existing footprint, also the highest among peers, meaning growth outperformance is set to continue," he further said.

H Price Action: Shares of Hyatt Hotels had risen by 2.34% to $84.56 at the time of publication Tuesday.

Related Link: Official Groundbreaking Ceremony for Hyatt House and the Marriott AC Hotel at the Red Cedar Development

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