Hyatt Hotels: All Eyes On Recent M&A (Rating Downgrade)

Summary

• My rating for H is revised from a Buy to a Hold, following a consideration of the company's takeover of Playa Hotels.
• I like how Hyatt will have a larger exposure to all-inclusive hospitality assets and the leisure travel segment with this deal.
• But there are concerns that H could possibly return less capital to shareholders and become more asset-heavy in the near future.