10 Best Hospitality Stocks to Buy According to Hedge Funds

7. Hyatt Hotels Corporation (NYSE:H)

Number of Hedge Fund Investors: 35

Hyatt Hotels Corporation (NYSE:H) is ranked seventh on our list of the Best Hospitality Stocks. It is an established name in the global hospitality industry that offers a variety of luxury, leisure, and all-inclusive brands internationally. Its collection of brands includes well-known names including Andaz, Grand Hyatt, and Park Hyatt. By placing itself across multiple market categories to serve a diversified customer, the company strategically concentrates on growing its reach through acquisitions and brand diversification. Its recent priorities include expanding its portfolio through acquisitions and increasing its market share in the all-inclusive industry, catering to both business and leisure guests. Important success factors include a diverse brand portfolio, strategic market positioning, and a balanced revenue model between management, franchising, and ownership.

Hyatt Hotels Corporation (NYSE:H) had a remarkable surge in membership in Q4 of 2024, with World of Hyatt hitting 54 million members (a 22% YoY growth) and co-branded credit card expenditure climbing by 18% YoY. Major U.S. metropolitan markets benefited from a 12% rise in business transient revenue, which drove RevPAR’s 5% Q4 growth and 4.6% year-over-year growth. Park Hyatt London and Grand Hyatt Deer Valley were among the new luxury and lifestyle hotels that opened. The company anticipates a 2%-4% spike in RevPAR and a 6%-7% surge in net rooms by 2025. Gross fees increased 17% to $294 million in Q4, while adjusted EBITDA reached 20%, boosted by $2.9 billion in total liquidity.

The firm has been accelerating its expansion through selective acquisitions and a focus on asset-light operations. Hyatt Hotels Corporation (NYSE:H) intends to strengthen its presence in the all-inclusive market by purchasing Playa Hotels & Resorts. Furthermore, it aims to maintain its asset-light approach by selling owned assets to raise $2 billion in cash by 2027.