AUSTIN, Texas - Hyatt Hotels Corporation (NYSE: NYSE:H) has announced its decision to implement the Oracle (NYSE:ORCL) OPERA Cloud platform as its new property management system (PMS) across its worldwide hotel portfolio, which includes more than 1,000 properties. The move is aimed at standardizing operations and improving data management.
The integration of OPERA Cloud into Hyatt's global operations is expected to enhance efficiency and consistency in guest experiences by providing a unified user interface and processes. Hyatt's Senior Vice President of Global Field Technology Services, Cameron Hammond, emphasized the role of technology in delivering exceptional service and stated that the collaboration with Oracle will empower their colleagues with better data insights.
Oracle's OPERA Cloud PMS, built on Oracle Cloud Infrastructure (OCI), will centralize data for Hyatt, enabling more effective operational planning and personalized guest experiences. The cloud-based system will also afford Hyatt employees the flexibility to assist guests via mobile devices.
Alex Alt, Executive Vice President and General Manager of Oracle Hospitality and Retail, highlighted that OPERA Cloud will provide Hyatt with the necessary tools to deliver superior guest experiences and allow for rapid innovation and customization at the property level through the Oracle Hospitality Integration Platform (OHIP).
This strategic move is part of Hyatt's ongoing commitment to equipping its workforce with seamless and intuitive technology platforms, which are also expected to yield long-term savings for Hyatt owners and operators.
Hyatt Hotels Corporation, headquartered in Chicago, operates a diverse portfolio of properties across six continents, including luxury and lifestyle brands, and manages the World of Hyatt loyalty program. Oracle Hospitality, with over 45 years of industry experience, offers technology solutions to the hospitality sector, focusing on cloud-based systems to enhance profitability and guest satisfaction.
This announcement is based on a press release statement, and it marks a significant step in Hyatt's efforts to leverage technology to improve operational efficiency and guest experiences across its global presence.
In other recent news, Hyatt Hotels Corporation has been making strategic moves, including the sale of the Orlando Hyatt Regency and the acquisition of Standard International. The sale, which aligns with Hyatt's transition towards an asset-light business model, was followed by financial services firms Jefferies, Stifel, and JPMorgan raising their price targets for Hyatt to $152, $151, and $164 respectively. Jefferies and Citi maintained a Hold and Neutral stance on Hyatt respectively, citing recent business moves and macroeconomic conditions.
The acquisition of Standard International is expected to expand Hyatt's brand portfolio and enhance its presence in the lifestyle hotel market. This acquisition includes 21 hotels under management, franchise, and license contracts, and more than 30 signed projects worldwide.
In terms of financial performance, Hyatt has reported a system-wide revenue per available room (RevPAR) increase of 4.7% in the recent quarter. Citi's third-quarter 2024 earnings per share (EPS) estimate for Hyatt has been set at $0.95, and the full-year 2024 EPS estimate has been raised to $4.37. However, the fiscal year 2025 EPS estimate has been adjusted downwards to $4.04. These are the recent developments in Hyatt's strategic and financial landscape.
InvestingPro Insights
As Hyatt Hotels Corporation (NYSE: H) embarks on enhancing its operational efficiency with Oracle's OPERA Cloud platform, investors may find it pertinent to note the company's financial health and market performance. Hyatt's commitment to innovation and efficiency is echoed in its financial metrics and strategic decisions.
With a market capitalization of 14.53 billion USD, Hyatt stands as a significant player in the hospitality industry. The company's impressive gross profit margin of 68.06% over the last twelve months, as of Q2 2024, showcases its ability to manage costs effectively while still generating substantial revenue, which amounted to 6.568 billion USD in the same period. This financial strength may provide the necessary backing for the successful implementation of new technologies like the Oracle OPERA Cloud system.
InvestingPro Tips for Hyatt highlight the company's aggressive share buyback strategy, which can be an indicator of management's confidence in the company's value. Additionally, Hyatt's stock is trading at a low P/E ratio relative to near-term earnings growth, which could suggest that the stock is undervalued in terms of its growth potential.
For investors seeking a deeper dive into Hyatt's performance and strategic outlook, InvestingPro offers additional tips. Currently, there are 11 more tips available, providing a comprehensive view of the company's financial stability, growth prospects, and market position. Visit https://www.investing.com/pro/H for an in-depth analysis and further insights.
While the upcoming integration of OPERA Cloud into Hyatt's operations is a forward-looking step, it is also supported by the company's solid financial foundation and strategic management decisions, offering investors potential assurance in Hyatt's future trajectory.
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