Hotel chain Hyatt (H) reports second-quarter earnings on Tuesday, as pent-up travel demand translates into higher prices. Shares of Hyatt and other travel stocks rose on Monday.
The company reports as more analysts try to read travel trends beyond the Labor Day peak, amid concerns that higher prices could drive people away from vacations.
Ratings: Wall Street expects Hyatt to earn six cents a share, down from a loss a year ago. Sales were seen rising 106% to $1.367 billion. Revenue per available room was seen coming in at $149.20.
Results: Deadline before opening.
Hyatt Stock, Travel Stocks
Hyatt shares rose 0.5% to 85.19 in trading today, hitting resistance near the 200-day line. The stock has a composite rating of 55. The EPS rating is 38.
Among other travel stocks, Marriott International (MAR) added 0.8%. Hilton (HLT) rose 0.3%. Expedia (EXPE) rose 2.8%. All three have reported quarterly results in the past two weeks.
The price of a hotel room stay has risen this year, with more people resuming travel and hotel staff harder to find.
Visibility ‘not so long term’
During a conference in June, Hyatt said 40% of its hotels were geared toward luxury, lifestyle and resort hotels. Business travel to major US cities has rebounded. But beyond the summer, long-term demand at the time was harder to gauge.
“Beyond the summer, right now, the visibility is not that long-term,” CFO Joan Bottarini said at that conference. “So what we can say is the visibility we have is very strong and healthy, especially on the rate side.”
Truist Securities travel stock analyst Patrick Scholes said in a note last week that top-tier hotels in the US, which benefited most from the resurgence in business and group travel, continued to outperform low. Lower-end hotels, which have benefited from a rebound in leisure travel, have thus had tougher year-over-year comparisons, he said.
He also said that particularly popular leisure destinations, such as those in Florida, had shown recent signs of cooling. High room rates, he said, are likely to cost him some customers. He also said Europe has re-emerged as a holiday destination following a rollback of travel restrictions and a friendlier exchange rate.
Demand in China, he said, was improving despite travel restrictions.
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