Does Hyatt survive? Or acquire?

Old Mar 12, 20, 1:30 pm
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Does Hyatt survive? Or acquire?

As travel stocks (and everything else) get hammered, Hyatt is down 15+% today (way more than competitors). Given its size, one has to wonder, will it survive this or get acquired (god i hope not), or maybe the opposite. Could it make an acquisition based on declining prices and the likely medium term impact on the industry?
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Old Mar 12, 20, 1:47 pm
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Originally Posted by antonius66 View Post
As travel stocks (and everything else) get hammered, Hyatt is down 15+% today (way more than competitors). Given its size, one has to wonder, will it survive this or get acquired (god i hope not), or maybe the opposite. Could it make an acquisition based on declining prices and the likely medium term impact on the industry?

pump the brakes......
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Old Mar 12, 20, 1:56 pm
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looks like last year they had $766M in net income and $1.4B in ebitda. I think they'll survive this.
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Old Mar 12, 20, 2:12 pm
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Well, I meant survive more as in do they get acquired, which has been a persistent rumor for years (but defeated I think solely by the Pritzkers), NOT as in do they go under. I also do wonder if maybe they could use this chance to make a purchase also. However, not for nothing, but a lot of companies easily can make a healthy profit one year and go bust the next. Lot more to it than just what they made last year...this year will most likely see substantial pain for many companies in many industries, especially travel, and a short or medium term cash crunch and possible upcoming debt service, etc could doom a few (which I think we will see). As I said though, I really did not mean is Hyatt going under...I meant independence.

Also, given many international companies suffering and China forcing some of its state owned/partially controlled conglomerates being forced to pare their positions, could previous targets be back on the block? Radisson, Melia, etc?
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Old Mar 12, 20, 4:44 pm
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Honestly, the stock looks very attractive in the current $50 range. I'm buying here.
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Old Mar 12, 20, 7:02 pm
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Hopefully they can load up on debt, buy Marriott, spin off all the legacy mediocre MarriottCo brands to pay off said debt, keep the legacy Starwood ones, toss the entire Marriott C-Suite, win back long term SPG loyals with great benefits and CS.

voila! New hotel powerhouse.

is that too much to ask?
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Old Mar 12, 20, 7:05 pm
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It's kind of early and premature to be expecting Hyatt to fail. In three months' time, we're all going to laugh at what's going to be the biggest overreaction in the history of the world.
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Old Mar 12, 20, 7:07 pm
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Originally Posted by lsquare View Post
It's kind of early and premature to be expecting Hyatt to fail. In three months' time, we're all going to laugh at what's going to be the biggest overreaction in the history of the world.
I hope your right but clearly your a) not a scientist or medical person and b) not reading or understanding the data. This is a very serious crisis and wishing it away or minimizing it doesnít help anyone.
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Old Mar 12, 20, 7:18 pm
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Hyatt isnít going to fail, be acquired, or acquire anyone.

Hyatt is really a family business controlled by the Pritzkers of Chicago. Yes itís publicly traded but my understanding is that the family maintains control through voting rights, special classes of stock, etc. This is similar to how Rupert Murdoch controls his companies while they are also publicly traded.

Bottom line is the Pritzkers will do what is necessary to keep the company afloat. They wonít sell or risk losing control (they wanted to buy Starwood and reportedly walked away when it would have required them to give up control of the Company). As for acquiring others, I really think they are too conservative in this highly uncertain environment to do that. Itís not like they need more brands...

What IS possible is that some Hyatt franchisees (who own and in some cases operate Hyatt-branded properties) COULD go under. THAT could result in many many closed or rebranded Hyatt hotels.... of course the same could happen with Marriott and Hilton which could lead to more Hyatt properties.
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Old Mar 12, 20, 7:55 pm
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Yeah, take a look at some of the stocks of these companies that own and run a bunch of hotels of varying brands. They're verging on penny stock territory.
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Old Mar 12, 20, 9:29 pm
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Hyatt ought to try to buy Loews Hotels. I think that would be a good fit. Pretty upscale brand and I donít think it really fits in with Loewsí other businesses (insurance, oil rigs, pipelines, and packaging manufacture).
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Old Mar 12, 20, 9:30 pm
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Originally Posted by lsquare View Post
It's kind of early and premature to be expecting Hyatt to fail. In three months' time, we're all going to laugh at what's going to be the biggest overreaction in the history of the world.
Isn't it almost 3 months out from initial outbreak in China? Is anyone laughing at what have transpired there an overreaction? I shudder to think what might happen 3 months from now if countries don't take what appear to be drastic measures.

LAX
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Old Mar 12, 20, 10:33 pm
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Originally Posted by LAX View Post
Isn't it almost 3 months out from initial outbreak in China? Is anyone laughing at what have transpired there an overreaction? I shudder to think what might happen 3 months from now if countries don't take what appear to be drastic measures.

LAX
Why aren't we doing this every year with the flu then?
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Old Mar 12, 20, 10:47 pm
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Originally Posted by lsquare View Post
It's kind of early and premature to be expecting Hyatt to fail. In three months' time, we're all going to laugh at what's going to be the biggest overreaction in the history of the world.
Originally Posted by lsquare View Post
Why aren't we doing this every year with the flu then?
With this kind of confidence I assume you've moved all your investments into call options on S&P 500 for July.
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Old Mar 12, 20, 11:53 pm
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Originally Posted by lsquare View Post
It's kind of early and premature to be expecting Hyatt to fail. In three months' time, we're all going to laugh at what's going to be the biggest overreaction in the history of the world.
Gee Donald, I wish I could believe that...
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