Chicago, IL – April 1, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Hyatt Hotels Corp. H, Marriott International, Inc. MAR, Choice Hotels International, Inc. CHH and Hilton Worldwide Holdings Inc. HLT.

Here are highlights from Monday’s Analyst Blog:

Hyatt Hotels Corp. is poised to benefit from solid improvement in revenue per available room (RevPAR), strong leisure travel demand and unit expansion efforts. Also, its focus on a loyalty program and strategic acquisitions bodes well. However, a volatile macroeconomic environment is a concern.

Let’s delve deeper.

Hyatt is gaining from strong demand for leisure travel, along with growth in business transient and group travel. The company reported system-wide RevPAR growth of 5% in the fourth quarter of 2024 and 4.6% for the full year. The luxury segment continues to drive performance, with high-end consumers prioritizing travel. Leisure transient revenues increased 4% in the fourth quarter, while business transient revenues gained 10%, reflecting strong demand from corporate travelers. Group bookings remain resilient, with a 2025 group pace for U.S. full-service managed properties up 7% compared to 2024. Business transient revenues increased 12% year over year, benefiting key urban markets like New York, Washington, D.C. and Seattle.

The World of Hyatt loyalty program continues to be key growth driver. Membership reached a record 54 million at 2024-end, a 22% increase from the previous year. Hyatt’s co-branded credit card spending grew 18% year over year in 2024, further enhancing customer engagement and revenue potential. The company’s strategic focus on delivering unique guest experiences is strengthening brand loyalty and increasing market share.

Hyatt continues to demonstrate strong growth prospects, supported by its strategic acquisitions and an expanding global footprint. The company’s focus on asset-light growth, driven by franchise and management agreements, has bolstered its revenue streams while minimizing operational risks. Additionally, its acquisition of Dream Hotel Group and Apple Leisure Group has strengthened its presence in the luxury and leisure segments, catering to the rising demand for premium travel experiences.

Hyatt’s robust development pipeline remains a key growth driver, with a significant number of properties expected to open in high-demand markets. The company’s expansion in Europe, the Middle East and Asia positions it well to capitalize on international travel recovery. Notably, its growing all-inclusive resort portfolio and expansion into lifestyle brands align with evolving consumer preferences, further enhancing its long-term revenue potential.

Hyatt — which shares space with Marriott International, Inc., Choice Hotels International, Inc. and Hilton Worldwide Holdings Inc. in the Zacks Hotels and Motels industry — faces uncertainties in financial markets due to liquidity constraints. Rising interest rates have made financing conditions in certain regions more challenging, potentially impacting the company’s development pipeline.

As of Dec. 31, 2024, Hyatt had approximately 720 hotels (138,000 rooms) under contract, but projects not yet under construction face risks related to regulatory approvals and securing financing. Delays or cancellations could affect net room growth, while consumer demand for newly developed hotels remains uncertain. Given the ongoing macroeconomic pressures, the company remains cautious as further challenges could limit access to cash and hinder new financing arrangements.

Marriott is benefiting from steady global travel demand and strategic portfolio expansion. In the fourth quarter of 2024, global RevPAR increased 5% year over year, driven by a 3.2% rise in the average daily rate (ADR) and a 1.2% increase in occupancy. Also, increased business transient demand and leisure transient RevPAR added to the upside. The company stated global group revenues (at the end of 2024) were tracking 6% higher for 2025 and 10% higher for 2026, driven by increases in both room nights and ADR.

Choice Hotelscontinues to benefit from unit expansion, franchising initiatives and the integration of Radisson Americas brands. Strategic partnerships and an enhanced rewards program further strengthen its position. The company’s growing scale has created new business development opportunities for franchisees, while investments in technology — such as an upgraded website and mobile apps — have improved booking conversions and operational efficiency.

Business travel trends remain strong in early 2025, supported by increased group bookings and corporate travel demand. Revenues from digital channels are accelerating, particularly mid-week and in corporate-managed segments. Meanwhile, enhancements to the Choice Privileges program, including extended booking windows and improved room redemption options, have boosted engagement and occupancy levels. Looking ahead, Choice Hotels expects growth to be driven by organic expansion into higher-revenue markets, rising effective royalty rates and additional revenue streams from its expanded footprint.

Hilton is benefiting from a solid improvement in RevPAR on the back of increased occupancy rates and ADR. Strong demand for leisure travel, along with growth in business transient and group travel, supported the performance. Also, its focus on unit expansion, hotel conversions and loyalty programs bodes well. Owing to strong trends in leisure occupancy and steady growth in business transient and group segments, Hilton expects RevPAR growth to be between 2% and 3% in 2025. For 2025, Hilton expects net unit growth to be in the range of 6-7%.

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Marriott International, Inc. (MAR) : Free Stock Analysis Report

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