Longleaf Partners Sees Bright Future in Hyatt Hotels Corp. (H)

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund added 1.91% in the fourth quarter, roughly in line with the Russell 2000’s 2.14% return. For the year, the Fund returned 11.18%, falling short of the Russell 2000, which returned 14.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Small-Cap Fund Commentary, in its Q4 2021 investor letter, mentioned Hyatt Hotels Corporation (NYSE: H) and discussed its stance on the firm. Hyatt Hotels Corporation is a Chicago, Illinois-based hospitality company with a $9.5 billion market capitalization. H delivered a -9.27% return since the beginning of the year, while its 12-month returns are up by 23.30%. The stock closed at $87.01 per share on January 21, 2022.

Here is what Longleaf Partners Small-Cap Fund Commentary has to say about Hyatt Hotels Corporation in its Q4 2021 investor letter:

“Hyatt (30%, 1.56%; 25%, 1.10%), the global hotel franchisor and owner, was the top contributor in the fourth quarter and among the largest contributors for the year. The company is once again cash profitable, even though its Group/Business bookings are less than half of 2019 levels. Revenues from leisure travelers, however, are up more than 20%, with pricing as high as 40% YOY for Hyatt’s most popular destination resorts. CEO Mark Hoplamazian made two great sales above our appraisal values this year, helping to grow our appraisal of the consolidated company value by 27%. We expect more proceeds to come in next year and earnings growth to accelerate back towards normalized levels with COVID reopening.”

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Our calculations show that Hyatt Hotels Corporation (NYSE: H) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. H was in 37 hedge fund portfolios at the end of the third quarter of 2021, compared to 23 funds in the previous quarter. Hyatt Hotels Corporation (NYSE: H) delivered a 4.74% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on H in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.