Hyatt (H) is trading at price-to-earnings multiples between two and three times those of its peers. There are many exciting events which pertain to the company. Most recently the company announced the opening of Hyatt Place Delray Beach in Palm Springs and Hyatt Regency Chongqing in Southwest China. These developments are associated with growth domestically and globally. Despite the rollout of exciting new properties, Hyatt has not delivered growth where it matters: earning and sales growth. Over the past five years the company has suffered a -10% compound annualized earnings growth rate while only achieving a 1.3% CAGR for sales. Moreover, even if rosy analyst estimates are correct and Hyatt's earnings growth pulls ahead of its peers, such growth would have to be sustained for too many years to validate its high price-to-earnings multiple. The high price multiples of Hyatt stock should dissuade investors from buying until its
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