Investing.com --Evercore ISI upgraded Hyatt Hotels (NYSE:H) to "outperform" from "in-line" citing an attractive entry point following the stock’s post-earnings selloff and underperformance relative to larger lodging peers.

The brokerage noted that Hyatt shares have lagged large-cap hotel brands by about 15 percentage points year-to-date and approximately 30 percentage points over the past 12 months. Despite asset sales creating a headwind to 2025 EBITDA growth, Evercore sees Hyatt benefiting from a higher mix of fee-based revenue.

The firm attributed some of the stock's recent weakness to concerns over Hyatt’s ongoing asset disposal program, which includes over $2 billion in planned sales. However, Evercore said it has gained confidence that Hyatt may not retain Playa Hotels&Resorts’ owned real estate for long, as the company has received interest from potential buyers following a successful acquisition of Playa.

“We have become more comfortable with the idea that the Playa owned assets might not sit in Hyatt’s hands for very long as the company,” analyst at Evercore said.

Private equity and third-party management firms have grown more receptive to the all-inclusive resort space post-pandemic, according to Evercore’s industry checks. Hyatt has indicated that Playa’s assets could transition to a fully fee-based model by the end of the year.

Hyatt shares trade at about 13 times estimated 2026 enterprise value-to-EBITDA, compared with an average of 17 times for large-cap lodging peers. Evercore kept its price target unchanged at $175.

“In our view, recent pullback vs. peers has in part been driven by the complexity of another >$2b asset sell-down program”

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