S&P flips Hyatt Hotels view to positive

S&P said it changed its outlook on Hyatt Hotels Corp. to positive from negative and affirmed all its ratings.

“The positive outlook reflects an accelerating recovery in RevPAR and EBITDA during the first quarter of 2022 and into the second quarter, and results at ALG that are pacing ahead of our previous assumptions, which could help reduce leverage below the 3.75x upgrade threshold over the next couple of years,” the agency said in a press release.

Additionally, S&P noted Hyatt's asset sales is in line with its expectations and will likely result in debt repayment later this year. Year to date, Hyatt has sold or contracted to sell properties that would generate $812 million of gross proceeds compared with a $2 billion asset disposition plan through 2024.

“In our view, the current pace of sales is key to reducing leverage to a level commensurate with the current rating,” the agency said.

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