Hyatt Shares Extend Rally for Second Day as Investors Bet on Resilient Luxury Travel Demand Before Earnings

NEW YORK — Shares of Hyatt Hotels rose more than 2% on Friday, extending a two-day rally as investors bet on resilient demand for luxury travel ahead of the company's third-quarter earnings report later this month.

Hyatt shares were up $4.04, or 2.39%, at $172.95 as of 12:15 p.m. Eastern time on the New York Stock Exchange.

The gain follows a 5.36% jump on Thursday, when the stock closed at $168.91, up from $160.32. Over the two sessions, the shares have risen about 8%.

Hyatt did not release any major company news on Friday.

Analysts positive

Recent analyst actions have been largely positive. Freedom Broker initiated coverage this week with a Buy rating and a $192 price target, while Bernstein also issued a Buy rating.

Earlier in October, Morgan Stanley raised its target to $211 from $209 with an Overweight rating, and Mizuho lifted its target to $222 from $221 with an Outperform rating. Susquehanna lowered its target to $180 from $185.

Analysts have a consensus Moderate Buy rating, with an average price target of about $198, according to MarketBeat.

Luxury demand resilient

Hyatt has focused on upscale and luxury hotels, a segment that has held up well despite economic uncertainty. Morningstar analysts have said demand for Hyatt's luxury and lifestyle brands remains resilient despite headwinds from the conflict involving Iran and security concerns in Mexico, a key resort market.

Higher-income travelers have continued to spend on premium travel, supported by strong stock markets and asset prices.

Delta partnership

Hyatt announced in September a long-term loyalty partnership with Delta Air Lines that will allow eligible elite members of World of Hyatt and Delta SkyMiles to earn rewards across both programs. The collaboration is expected to launch in the coming months.

Hyatt CEO Mark Hoplamazian said at the time that exceptional travel is about "creating memorable experiences throughout the full travel journey."

The partnership followed the end of Hyatt's loyalty relationship with American Airlines.

Shares still below highs

Despite the recent rally, Hyatt shares remain below their 52-week high of $206.86. The stock has traded as low as $134.18 over the past year.

Hyatt's price-to-earnings ratio is elevated because of low reported earnings, reflecting the company's transition toward an asset-light business model focused on managing and franchising hotels rather than owning them.

Hyatt is scheduled to report third-quarter results on Oct. 29 before the market opens. Investors will watch for trends in revenue per available room, a key industry measure, as well as the company's outlook for the holiday season and 2027.