Hyatt Earnings Due, As These Travel Destinations Show Signs Of Cooling Off

Hotel chain Hyatt (H) reports second-quarter earnings on Tuesday, as pent-up travel demand runs into higher prices. Hyatt stock and other travel stocks were up on Monday.

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The company reports as more analysts try to get a read on travel trends beyond the Labor Day peak, amid concerns that rising prices could turn people away from vacationing.

Hyatt Earnings

Estimates: Wall Street expects Hyatt to earn six cents per share, up from a loss a year ago. Sales were seen jumping 106% to $1.367 billion. Revenue per available room was seen coming in at $149.20.

Results: Due before the open.

Hyatt Stock, Travel Stocks

Hyatt stock edged up 0.5% to 85.19 in the stock market today, hitting resistance near the 200-day line. Shares have a 55 Composite Rating. The EPS Rating is 38.

Among other travel stocks, Marriott International (MAR) added 0.8%. Hilton (HLT) edged up 0.3%. Expedia (EXPE) rose 2.8%. All three have reported quarterly results in the past couple of weeks.

The price of a hotel room stay has risen over this year, with more people resuming travel and hotel staffing harder to come by.

Visibility ‘Not That Long-Term’

During a conference in June, Hyatt said that 40% of its hotels were geared toward luxury, lifestyle and resort hotels. Business travel to larger U.S. cities has rebounded. But beyond summer, longer-term demand at that time was tougher to gauge.

“Beyond summer, right now, visibility is not that long-term,” CFO Joan Bottarini said at that conference. “So what we can say is the visibility that we do have is very strong and healthy, particularly on the rate side.”

Truist Securities travel stocks analyst Patrick Scholes, in a note last week, said higher-end hotels in the U.S., which benefited more from the revival of business and group travel, continued to outperform lower-end ones. Lower-end hotels, which have benefited from a comeback in leisure travel, thus had more difficult year-over-year comparisons, he said.

He also said that particularly popular leisure destinations, like those in Florida, had shown recent signs of cooling off. Spiking room rates, he said, likely priced out some customers. He also said Europe has reemerged as a vacation spot following a rollback in travel restrictions and a more friendly exchange rate.

Demand in China, he said, was improving, despite travel restrictions.

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