For everyone experiencing this issue, here are a couple of things to keep in mind and some possible ways to shorten the time of the processing.
This is unique so far to Sierra. Under Sierra it will happen on every Apple device you own and upgrade to current OSs. In High Sierra, it need only happen on 1 device and the meta data will be shared with your other devices. I suggest you have your fastest device to analyze your photos.
Photos is attempting to do many different things like categorizing objects and facial recognition. This is very processor intensive and in order to group things and to create all the meta-data, Photos goes through your library multiple times. The larger your library, the more times it will repeat the process. As it finds new faces, it has to analyze and compare to other faces for possible matches. Rinse and repeat, rinse and repeat… Photos doesn't just go through all your Photos just once!
One way to cut down the time it takes, is to split your library. You should do this before installing Sierra. You can move your Photos library to an external drive, split into 2 or more libraries and only have Photos analyze 1 library. How many of us have 10 year old photos that don't need to be in current library. You can move this to an external drive and not have them indexed by Photos. You can start a new internal library and the time it takes to analyze photos as you take them is very short. You can export photos and keep copies on external drives or on a cloud server like Dropbox or Amazon, etc…
A strong, very strong warning for all users of iCloud Photo Library. If you simply delete photos in your iCloud Photo Library, all copies of your photos will be deleted. (They are temporarily held in a "Recently Deleted" folder for 30 days but then are permantely deleted) This means if you are running out of room on your iPhone and delete photos it will eventually delete them from your iCloud library, your computer and everything else tied to your iCloud Photos Library.
OK I have done my best to warn you!
As to the precent of CPU used, how can it be 150-700%?? Macs with Intel processors are capable of using multiple cores and each core is capable of running 2 threads each. If you have a 2 core Mac Mini, it has a maximum of 400% CPU usage. If you have a computer with 4 cores, the maximum is 800%.
The Giga Hertz (GHz) plays a role here as well.The higher the GHz the faster the processor. However, as the computer reaches a certain temperature, it will self throttle (slow down) to limit the heat inside, therefore, making sure to apply some external cooling will help speed up intensive processes. You can see this in Activity Monitor located in your Utilities Folder.
Best I can say is split your library, or just wait and leave your computer plugged in and on, no sleep at night.
Having said all this, is it possible that your computer will get hung up? Unfortunately, yes, but it is very difficult to tell when it happens. You may have corrupted files that trips up the Mac. About the only way I know of figuring out if your Mac is hung is to go into Activity Monitor, select the process and take multiple samples to see if it is just looping on a file.
Hope this helps, Greg