Hotel chain Hyatt (H) reports second-quarter results on Tuesday as pent-up travel demand comes up against higher prices. Hyatt shares and other travel stocks rose on Monday.
The company reports that more analysts are trying to understand travel trends beyond the Labor Day peak, as rising prices could steer people away from the holidays.
Estimates: Wall Street expects Hyatt to earn six cents a share, up from a loss a year ago. Sales jumped 106% to $1.367 billion. Revenue per available room was estimated at $149.20.
Results: To be submitted before the open.
Hyatt Stock, Travel Stock
Hyatt stock edged up 0.5% to 85.19 in the stock market today, hitting resistance near the 200-day line. The shares have a composite rating of 55. The EPS rating is 38.
Among other travel documents, Marriott International (MAR) added 0.8%. hilton (HLT) edged up 0.3%. Expedia (EXPE) increased by 2.8%. All three have released quarterly results over the past two weeks.
The price of staying in a hotel room has risen this year, with more people resuming travel and hotel staff harder to find.
“Not long-term” visibility
At a conference in June, Hyatt said 40% of its hotels were geared towards luxury, lifestyle and resort hotels. Business travel to major US cities rebounded. But beyond the summer, the longer-term demand around this time was harder to gauge.
“Beyond the summer, right now, the visibility is not so long-term,” CFO Joan Bottarini told the 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 in a note last week said upscale hotels in the United States, which were benefiting more from the recovery in business and group travel, continued to outperform low-end hotels. Lower-end hotels, which benefited from a return to leisure travel, therefore had tougher year-over-year comparisons, he said.
He also said that particularly popular leisure destinations, like those in Florida, had recently shown signs of cooling. The spike in room rates, he said, likely cost some guests dearly. He also said Europe had re-emerged as a vacation spot following a rollback in travel restrictions and a more favorable exchange rate.
Demand in China, he said, was improving, despite travel restrictions.
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