Hyatt Hotels Reports Adj. Profit In Q4

Hospitality major Hyatt Hotels Corp. (H), on Thursday, reported fourth quarter net income attributable to company of $294 million compared to a loss of $29 million, last year. Profit per share was $2.69 compared to a loss of $0.26. Net income in the fourth quarter included a non-cash benefit of $250 million due to the release of a valuation allowance on U.S. federal and state deferred taxes.

Adjusted net income attributable to Hyatt was $278 million compared to a loss of $306 million, previous year. Adjusted profit per share was $2.55 compared to a loss of $2.78. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.33, for the quarter. Analysts’ estimates typically exclude special items. Adjusted EBITDA increased to $232 million from $112 million, previous year. Apple Leisure Group or ALG contributed $43 million of adjusted EBITDA in the fourth quarter.

Fourth quarter total revenues increased to $1.59 billion from $1.08 billion, prior year. Analysts on average had estimated $1.52 billion in revenue. Adjusted revenues were $857 million compared to $584 million.

Comparable system-wide RevPAR increased 2.4% in the fourth quarter, compared to the same period in 2019. Excluding Greater China, system-wide RevPAR increased 6.6% in the fourth quarter.

For 2023, the company estimates system-wide RevPAR growth in a range of 10% to 15%. Net rooms growth is projected to be approximately 6.0%.

In the fourth quarter, 57 new hotels or 10,784 rooms joined Hyatt’s system. As of December 31, 2022, the company had a pipeline of executed management or franchise contracts for approximately 580 hotels or approximately 117,000 rooms, inclusive of ALG’s pipeline contribution of approximately 20 hotels or approximately 8,000 rooms.

As of December 31, 2022, the company has total debt of $3.113 billion. Total liquidity was approximately $2.6 billion.

Early in the month, Hyatt completed the acquisition of the Dream Hotel Group. The acquisition included 12 lifestyle hotels, with another 24 signed long-term management agreements for hotels to be opened in future.

The hotel chain also recently announced the planned rebranding of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch as Grand Hyatt Scottsdale Resort & Spa in late 2024. This will mark the first Grand Hyatt hotel in Arizona.

The hotel’s owner Xenia Hotels and Resorts, is expected to invest around $110 million to fully transform the property into a Grand Hyatt hotel, following a long renovation.

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