Hyatt Hotels Corporation (NYSE:H) reported its Q1 results last week, with EPS of ($0.33) coming in better than the consensus estimate of ($0.43). The better-than-expected earnings resulted in Berenberg Bank lifting its forecasts modestly and upgrading the company to hold from sell with a price target of $85 (up from $80).

According to the analysts at Berenberg Bank, the tour operating business acquired with Apple Leisure Group was the main driver of the Q1 EBITDA beat.

While Hyatt optically looked to lag peers’ revenue per available room recovery in Q1, the analysts believe the rapid recovery the company has cited in March and April suggests that this gap will close over the year. The improvements are being driven by a more rapid return of group bookings in the business, a segment where Hyatt is over-indexed.