Baron Partners Fund on Hyatt Hotels Corporation

Hyatt benefited from accelerating revenue per available room and stronger franchisee interest in its brands during the quarter. These trends are translating into improving earnings and cash flow. Baron also highlights Hyatt's robust balance sheet and continued share repurchases. Despite recent gains, the company trades at a meaningful valuation discount to peers with a similar mix of fee-based operations. The fund therefore continues to view the shares as attractive.