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- Comparable system-wide hotels RevPAR increased 5.5% compared to the same period in 2023
- Comparable system-wide all-inclusive resorts Net Package RevPAR increased 11.0% compared to the same period in 2023
- Net Rooms Growth was approximately 5.5%
-
Net Income was
$522 million and Adjusted Net Income was$75 million
-
Diluted EPS was
$4.93 and Adjusted Diluted EPS was$0.71
-
Adjusted EBITDA was
$252 million
- Pipeline of executed management or franchise contracts was approximately 129,000 rooms
-
Repurchased approximately 2.5 million shares of Class A and Class B common stock for an aggregate purchase price of
$388 million
- Full year comparable system-wide hotels RevPAR is projected to increase 3% to 5% on a constant currency basis compared to full year 2023
-
Full year Net Income is projected between
$1,135 million and$1,195 million
-
Full year Adjusted EBITDA is projected between
$1,150 million and$1,190 million and is in line with previously provided 2024 Outlook when adjusting for$30 million of reduced Adjusted EBITDA due to transactions
-
Full year Capital Returns to Shareholders is projected between
$800 million and$850 million
Segment Results and Highlights
(in millions) |
|
Three Months Ended |
|
|
|||||||
|
|
2024 |
|
2023 |
|
Change (%) |
|||||
Management and franchising |
|
$ |
203 |
|
|
$ |
184 |
|
|
10.2 |
% |
Owned and leased |
|
|
60 |
|
|
|
71 |
|
|
(16.5 |
)% |
Distribution |
|
|
39 |
|
|
|
58 |
|
|
(31.7 |
)% |
Overhead |
|
|
(51 |
) |
|
|
(46 |
) |
|
(9.0 |
)% |
Eliminations |
|
|
1 |
|
|
|
1 |
|
|
(33.0 |
)% |
Adjusted EBITDA |
|
$ |
252 |
|
|
$ |
268 |
|
|
(5.9 |
)% |
-
Management and franchising: Results in the first quarter were driven by solid demand across all customer segments. Regional highlights include strong outbound travel from
Greater China , benefiting markets such asJapan ,Thailand , andSouth Korea . Leisure demand was strong inMexico and theCaribbean for hotels and all-inclusive resorts. European all-inclusive properties produced impressive Net Package RevPAR growth driven by high demand for resorts in theCanary Islands . Inthe United States , RevPAR was up approximately 2%, excluding the impact of Easter, reflecting normalized growth.
-
Owned and leased: Adjusted EBITDA in the first quarter decreased by 9% compared to the first quarter of 2023, when adjusted for asset dispositions. The decline was driven by difficult comparisons to 2023, including the
Super Bowl inPhoenix , higher real estate taxes, higher wages, and transaction costs related to asset sales in process.
-
Distribution: The segment performance was impacted by challenging year-over-year comparisons particularly due to
ALG Vacations which lapped a strong quarter in the previous year.
Openings and Development
In the first quarter, 12 new hotels (or 2,425 rooms) joined Hyatt's portfolio. Notable openings included
As of
Transactions and Capital Strategy
In addition to the completion of the transaction that resulted in the Company selling 80% of the entity that owns the
-
Sold
Park Hyatt Zurich onApril 4, 2024 ,Hyatt Regency San Antonio Riverwalk onApril 23, 2024 , andHyatt Regency Green Bay onMay 1, 2024 to unrelated third parties for combined proceeds of$535 million at a 14.7x multiple. The Company entered into long-term management agreements forPark Hyatt Zurich andHyatt Regency San Antonio Riverwalk , and a long-term franchise agreement forHyatt Regency Green Bay . In connection with the Park Hyatt Zurich transaction, the Company provided approximately$45 million of seller financing.
-
Signed a purchase and sale agreement for an asset that, upon closing, would generate gross proceeds that exceed the remaining portion of the Company's
$2.0 billion asset sell-down commitment.
- As previously disclosed, another asset remains in the marketing process.
As of
On
Balance Sheet and Liquidity
As of
-
Total debt of
$3,055 million .
-
Pro rata share of unconsolidated hospitality venture debt of
$457 million , substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
-
Total liquidity of approximately
$2.3 billion with$794 million of cash and cash equivalents and short-term investments, and borrowing availability of$1,496 million under Hyatt's revolving credit facility, net of letters of credit outstanding.
During the first quarter, the Company repurchased a total of 528,427 shares of Class A common stock for approximately
The Company's board of directors has declared a cash dividend of
2024 Outlook
The Company is providing the following outlook for the 2024 fiscal year reflecting the sales of
|
|
Full Year 2024 vs. 2023 |
System-Wide Hotels RevPAR1 |
|
3% to 5% |
Net Rooms Growth |
|
5.5% to 6.0% |
(in millions) |
|
Full Year 2024 |
Net Income |
|
|
Gross Fees |
|
|
Adjusted G&A Expenses2 |
|
|
Adjusted EBITDA2 |
|
|
Capital Expenditures |
|
Approx. |
Free Cash Flow2 |
|
|
Capital Returns to Shareholders3 |
|
|
1 |
RevPAR is based on constant currency whereby previous periods are translated based on the current period exchange rate. RevPAR percentage for 2024 vs. 2023 is based on comparable hotels. |
|
2 |
Refer to the tables on schedule A-9 for a reconciliation of estimated Net Income attributable to |
|
3 |
The Company expects to return capital to shareholders through a combination of cash dividends on its common stock and share repurchases. |
|
No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2024 Outlook. The Company's 2024 Outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that Hyatt will achieve these results. |
Conference Call Information
The Company will hold an investor conference call this morning,
Participants are encouraged to listen to a simultaneous webcast of the conference call, which may be accessed through the Company's website at investors.hyatt.com. Alternatively, participants may access the live call by dialing: 800.715.9871 (
A replay of the call will be available for one week beginning on
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include statements about our plans, strategies, outlook, occupancy, the amount by which the Company intends to reduce its real estate asset base, the expected amount of gross proceeds from the sale of such assets, and the anticipated timeframe for such asset dispositions, the number of properties we expect to open in the future, pace and booking trends, the expected timing and payment of dividends, RevPAR trends, our expected Adjusted G&A Expense, our expected capital expenditures, our expected net rooms growth, our expected system-wide RevPAR, our expected one-time integration-related expenses, financial performance, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the rate and pace of economic recovery following economic downturns; global supply chain constraints and interruptions, rising costs of construction-related labor and materials, and increases in costs due to inflation or other factors that may not be fully offset by increases in revenues in our business; risks affecting the luxury, resort, and all-inclusive lodging segments; levels of spending in business, leisure, and group segments, as well as consumer confidence; declines in occupancy and average daily rate; limited visibility with respect to future bookings; loss of key personnel; domestic and international political and geopolitical conditions, including political or civil unrest or changes in trade policy; hostilities, or fear of hostilities, including future terrorist attacks, that affect travel; travel-related accidents; natural or man-made disasters, weather and climate-related events, such as earthquakes, tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil spills, nuclear incidents, and global outbreaks of pandemics or contagious diseases, or fear of such outbreaks; our ability to successfully achieve certain levels of operating profits at hotels that have performance tests or guarantees in favor of our third-party owners; the impact of hotel renovations and redevelopments; risks associated with our capital allocation plans, share repurchase program, and dividend payments, including a reduction in, or elimination or suspension of, repurchase activity or dividend payments; the seasonal and cyclical nature of the real estate and hospitality businesses; changes in distribution arrangements, such as through internet travel intermediaries; changes in the tastes and preferences of our customers; relationships with colleagues and labor unions and changes in labor laws; the financial condition of, and our relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; risks associated with potential acquisitions and dispositions and our ability to successfully integrate completed acquisitions with existing operations; failure to successfully complete proposed transactions (including the failure to satisfy closing conditions or obtain required approvals); our ability to successfully execute our strategy to expand our management and hotels services and franchising business while at the same time reducing our real estate asset base within targeted timeframes and at expected values; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of our real estate assets; unforeseen terminations of our management and hotels services or franchise agreements; changes in federal, state, local, or foreign tax law; increases in interest rates, wages, and other operating costs; foreign exchange rate fluctuations or currency restructurings; risks associated with the introduction of new brand concepts, including lack of acceptance of new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we operate; our ability to successfully grow the World of Hyatt loyalty program and
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under
Availability of Information on Hyatt's Website and Social Media Channels
Investors and others should note that Hyatt routinely announces material information to investors and the marketplace using
About
Refer to the table on page A-7 of the schedules for a summary of special items impacting Adjusted Net Income and Adjusted Diluted EPS for the three months ended
Note: All RevPAR and ADR percentage changes are in constant dollars. All Net Package RevPAR and Net Package ADR percentage changes are in reported dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page A-5.
HHC-FIN
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509006668/en/
Investor Contacts
-
Adam Rohman , 312.780.5834, adam.rohman@hyatt.com
-
Tara Atwood , 312.780.5713, tara.atwood@hyatt.com
Media Contact
-
Franziska Weber , 312.780.6106, franziska.weber@hyatt.com
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