Hyatt’s Luxury Edge Over Hilton Is Paying Off

Hilton has 3.6 times as many rooms as Hyatt. Yet Hyatt has way more luxury rooms than Hilton.

That inversion is the single biggest reason Hyatt’s stock is the “top pick” of analysts at Barclays, Morgan Stanley, and Deutsche Bank. Their bet: High-income travelers will be the most resilient this year.

The gap is stark. Hyatt had 22% of its rooms in luxury brands as of Dec. 31, while Hilton had just 2.4%, according to Skift’s calculations based on financial filings. 

There are debates over what counts as a luxury brand. If one includes all of Hyatt’s luxury all-inclusive resorts, for instance, the percentage is even higher, making 31% of its rooms “luxury.” See how Skift calculated its numbers, below.

Hilton vs. Hyatt on Luxury

To illustrate Hyatt’s luxury brand strength, Skift compared its pricing power, occupancy, and estimated revenue with Hilton’s. The comparison showed that the competition is fierce. 

Hilton’s brands are