In this article, we discuss the 5 best stock picks of Mason Hawkins’ Southeastern Asset Management. If you want to see more of the top holdings of the hedge fund, check out 10 Best Stock Picks of Mason Hawkins’ Southeastern Asset Management.
5. Hyatt Hotels Corporation (NYSE:H)
Southeastern Asset Management’s Stake Value: $312,401,000
Percentage of Southeastern Asset Management’s 13F Portfolio: 5.24%
Number of Hedge Fund Holders: 38
Hyatt Hotels Corporation (NYSE:H) was founded in 1957 and is headquartered in Chicago, Illinois. It operates as a hospitality company in the United States and internationally, via Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME/SW Asia Management and Franchising, and Apple Leisure Group segments.
Securities filings for the fourth quarter of 2021 reveal that Mason Hawkins’ Southeastern Asset Management owned 3.25 million shares of Hyatt Hotels Corporation (NYSE:H), worth $312.4 million, representing 5.24% of the total 13F portfolio. The hedge fund cut its Hyatt Hotels Corporation (NYSE:H) stake by 21% in the December quarter.
On March 23, Truist analyst Patrick Scholes raised the price target on Hyatt Hotels Corporation (NYSE:H) to $111 from $106 and kept a Buy rating on the shares. The analyst stated that the combination of the Apple Leisure Group acquisition and the $2 billion worth of planned asset disposals is a “game changer” in how he values Hyatt Hotels Corporation (NYSE:H).
According to Insider Monkey’s Q4 data, Hyatt Hotels Corporation (NYSE:H) was found in the public stock portfolios of 38 hedge funds, compared to 37 funds in the earlier quarter. Gabriel Plotkin’s Melvin Capital Management is the biggest shareholder of the company, with 4.95 million shares worth $474.70 million.
Here is what Baron Partners Fund has to say about Hyatt Hotels Corporation (NYSE:H) in its Q4 2021 investor letter:
“Higher inflation made many of the Fund’s investments in Real/Irreplaceable Assets more valuable. Hyatt Hotels Corp. has used its strong financial positioning to acquire assets in the faster growing leisure travel segment. It has also divested assets at favorable prices while retaining lucrative management contracts.
Shares of global hotelier Hyatt Hotels Corp. increased as the company continued to pivot towards a more asset-light business and greater focus on leisure with the acquisition of Apple Leisure Group. The acquisition increases the company’s leisure exposure from 25% to 50% of its business. Together with the planned sale of $2 billion of owned real estate over the next two years, this acquisition should result in a business that is 80% fee-based and 20% owned-based. Hyatt plans to use proceeds from the sale of owned assets to pay down debt incurred to complete the acquisition.”
