Hyatt Stock Price Struggles As The Luxury Hotel Giant Withdraws 2020 Guidance Amid Coronavirus Outbreak

Shares of the luxury hotel giant Hyatt Hotels Corp. trade nearly 23% lower compared to the record highs set only two weeks ago as the company prepares for the impact of the coronavirus outbreak.

Fundamental analysis: 2020 guidance withdrawn

The Chicago-based company announced it is forced to withdraw its 2020 guidance, shared with the investors only two weeks ago, as it faces difficulties to make financial projections.

Hyatt, as well as other hotel giants, is expected to take a big hit given the serious travel restrictions imposed in North America, Europe, and Asia.

On February 20, the hotel giant said it expects the full-year 2020 RevPAR (revenue per available room) growth to come between -0.5% to 1.5%, while the net rooms growth was expected between 6.5% and 7%.

Technical analysis: Approaching key support

Looking at the price action, the company has lost almost a quarter of its value in the last 15 days on the back of the coronavirus outbreak. As a result, the price action is now approaching the crucial short-term support, located in the $68 - $72 range.

As seen in the picture below, the price is threatening to breach the 100 weekly moving average around the $76.50 mark, which would be a bearish development.

The area around the $70 handle consists of three different layers of support, and it is likely to play an important role. If the coronavirus outbreak slows down and the risk appetite improves, this level can also be seen by investors as an opportunity to get back in and play the long side again.

Summary

Hyatt stock price trades almost 23% lower, compared to the record high set two weeks ago, amid the coronavirus outbreak, which also prompted the hotel giant to withdraw its 2020 guidance.