Hyatt Hotels Corporation (H): Among Nicholas J. Pritzker's Stock Picks with Huge Upside Potential

We recently published an article titled Billionaire Nicholas J. Pritzker's 8 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Hyatt Hotels Corporation (NYSE:H) stands against Nicholas J. Pritzker's other stock picks with huge upside potential.

Nicholas J. Pritzker is the chairman and co-founder of Tao Capital Partners, a San Francisco-based venture capital firm established in 2013. A prominent American entrepreneur and member of the influential Pritzker family, Nicholas Pritzker is widely recognized for his business acumen and leadership within both the family’s ventures and his own independent endeavors. He previously served as Chairman and CEO of the Hyatt Development Corporation and is associated with the Pritzker family's substantial business interests, including ownership stakes in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey includes studies at Reed College, Lake Forest College, and the London School of Economics, followed by earning a J.D. from the University of Chicago.

At Tao Capital Partners, Pritzker oversees a firm that strategically focuses on investments in technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, and hospitality. Although he holds the role of chairman, Nicholas Pritzker is not the portfolio manager of the firm. Instead, that position is held by Matthias Brachtel, who is responsible for managing the firm’s investment portfolio and making critical financial decisions. Under their leadership, Tao Capital has established a reputation for backing innovative and sustainable ventures, emphasizing long-term positive impacts alongside financial returns.

Tao Capital Partners follows a disciplined investment philosophy, targeting sectors poised for growth and transformation. The firm’s investments include companies within the technology and transportation industries, as well as those focused on healthcare, education, sustainable food, and clean energy solutions. This diversified approach reflects the firm’s commitment to not only achieving financial gains but also fostering advancements in critical global sectors.

As of Q4 2024, Tao Capital Partners reported managing $143.28 million in 13F securities across ten core holdings. The firm’s commitment to sustainable and impactful investment aligns with Nicholas Pritzker’s broader vision of leveraging capital to drive positive change. Pritzker’s guidance continues to shape the firm’s strategic direction, while Matthias Brachtel’s portfolio management expertise ensures the optimization of returns within the chosen sectors. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio aimed at fostering sustainable growth.

Our Methodology

For this article, we searched through Tao Capital’s Q4 2024 13F filings to identify billionaire Nicholas J. Pritzker's stock picks with the highest upside potential. We compiled the equities with upside potential higher than 2% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

Hyatt Hotels Corporation (NYSE:H)

Number of Hedge Fund Holders as of Q4: 35

Tao Capital’s Equity Stake: $10.99 Million

Upside Potential as of May 8: 16.31%

Hyatt Hotels Corporation (NYSE:H), headquartered in Chicago, Illinois, is a global hospitality company known for managing and franchising luxury hotels, resorts, and vacation properties. As of the first quarter of 2025, Hyatt has continued to strengthen its market position with notable financial achievements and strategic moves.

For Q1 2025, Hyatt Hotels Corporation (NYSE:H) reported net income attributable to the corporation of $20 million, while adjusted net income stood at $46 million. Diluted earnings per share (EPS) came in at $0.19, with adjusted diluted EPS of $0.46, reflecting the company’s ability to generate positive earnings despite fluctuating economic conditions. Demonstrating shareholder commitment, Hyatt repurchased approximately 1.1 million shares of Class A common stock, amounting to $149 million.

Operationally, Hyatt witnessed a comparable system-wide hotels revenue per available room (RevPAR) increase of 5.7% compared to Q1 2024, signaling a steady recovery in guest demand and stronger pricing power. Additionally, Hyatt Hotels Corporation (NYSE:H) achieved net rooms growth of 10.5%, underlining its ongoing expansion in both domestic and international markets. These metrics reflect the successful implementation of Hyatt’s strategic growth initiatives, bolstering its position as a leader in the luxury hospitality segment.

The company’s increasing appeal among institutional investors is evident, as hedge fund interest rose significantly by the end of Q4 2024. A total of 35 hedge funds held stakes in Hyatt, compared to 22 in the previous quarter, with combined holdings valued at $577 million, according to Insider Monkey's database. Notably, Hyatt Hotels Corporation (NYSE:H) forms 7.66% of Pritzker's highly concentrated portfolio, highlighting its perceived long-term value and growth potential.

With a price target of $144.92 and an upside potential of 17.01%, Hyatt Hotels Corporation (NYSE:H) is among billionaire Nicholas J. Pritzker's stock picks with huge upside potential, supported by its consistent earnings growth, shareholder-friendly strategies, and expanding global presence.

Nightview Capital stated the following regarding Hyatt Hotels Corporation (NYSE:H) in its Q4 2024 investor letter:

“Travel and entertainment are transforming as consumers prioritize experiences over material goods. This isn’t a return to pre pandemic norms—it’s a reinvention of how we connect, explore, and enjoy life. Travelers seek uniqueness and personalization, while entertainment blends digital and physical realms to create new experiences. The companies leading this evolution are redefining tradition through innovation, delivering unforgettable moments to a new generation. These businesses are not just adapting—they’re shaping the future of the experience economy.

Hyatt Hotels Corporation (NYSE:H): Core Opportunity: Hyatt’s transition to an asset-light model makes it well positioned for flexibility and stable, long-term growth. By selling properties at premium multiples and reinvesting in brand acquisitions, Hyatt is increasing its global footprint and strengthening its portfolio.

Competitive Advantage:

Loyalty Leadership: The World of Hyatt program has grown to 46 million members, a 22% YoY increase in 2024, with 30% more members per hotel than competitors.

Luxury Focus: Expanding soft brands allows Hyatt to maintain each hotel’s unique identity while benefiting from its extensive distribution network…” (Click here to read the full text)

Overall H ranks 6th among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. While we acknowledge the potential of H as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than H but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.