Hyatt Hotels Stock Sinks On Q4 Earnings Miss, Company Eyes Growth In 2025

Hyatt Hotels Corporation H shares are trading lower on Thursday.

The company reported fourth-quarter adjusted earnings per share of 42 cents, missing the street view of 78 cents. Quarterly sales of $1.602 billion missed the analyst consensus estimate of $1.658 billion.

Comparable system-wide hotels Revenue per Available Room, or RevPAR growth was 5.0% in the fourth quarter and 4.6% for the full year of 2024.

Adjusted EBITDA grew 2.4% year over year to $255 million. Adjusted EBITDA increased 20.3% in the quarter, when adjusted for the net impact of asset sales.

In the fourth quarter, 81 new hotels (or 20,721 rooms) joined Hyatt’s portfolio.

Notable openings included Grand Hyatt Deer Valley, Dreams Madeira Resort Spa & Marina, Park Hyatt London River Thames, Thompson Palm Springs, and nine UrCove properties.

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As of December 31, the company had a pipeline of executed management or franchise contracts for approximately 720 hotels (or approximately 138,000 rooms), representing pipeline expansion of approximately 9% year over year.

Hyatt had a total debt of $3.782 billion as of the end of the last year. The company had total liquidity of approximately $2.9 billion with $1.383 billion of cash and equivalents and short-term investments and borrowing availability of $1.497 billion under its revolving credit facility, net of letters of credit outstanding.

On February 10, the company announced it entered into an agreement to acquire all outstanding shares of Playa Hotels & Resorts N.V. for $13.50 per share, or approximately $2.6 billion, inclusive of approximately $900 million of debt.

Dividend: The company has declared a cash dividend of $0.15 per share for the first quarter of 2025. The dividend is payable on March 12 to stockholders of record as of February 28.

Outlook: The company expects FY25 System-Wide Hotels RevPAR growth of 2% – 4%., and net rooms growth of 6% – 7%.

The company is not providing an outlook for capital returns to shareholders at this time due to the pending Playa deal.

Price Action: H stock is down 10.2% to $145.65 at last check Thursday.

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