Originally Posted by
Tino
My point is that Hyatt is burning cash at a tremendous rate, so I am surprised that they are not trying to raise money more quickly.
Their 1Q earnings will be released at 4 pm today, so we will see how badly they are bleeding cash, potential property closures/sales, etc. It's going to be grim.
That is exactly right. Selling points is like selling stamps: you get income today for services you don't have to provide until some point in the future. It is especially profitable right now, because Hyatt reimburses the franchisees a lot more when the hotel is full, and hotels aren't full right now.
I'm surprised that Hyatt is not offering a bigger deal. 30%? No way am I interested in buying at that price.