Ron Baron Comments on Hyatt Hotels Corp

- By Holly LaFon

Shares of global hotelier Hyatt Hotels Corp. (NYSE:H) increased in the quarter after the company announced plans to sell $1.5 billion of hotels over the next three years and become more of a fee-based business. We think these sales could increase Hyatt's fee business from 50% to 60% and improve stability overall. Management plans to use the proceeds to repurchase shares, which we believe should add value for shareholders. We think Hyatt has a strong balance sheet. (David Baron)

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From Ron Baron (Trades, Portfolio)'s Partners Fund 2018 shareholder letter.

This article first appeared on GuruFocus.

• Warning! GuruFocus has detected 3 Warning Sign with H. Click here to check it out.

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