- Hyatt Hotels Corp H shares are down Thursday morning following its mixed Q1 performance. The company said its outlook remains optimistic, citing favorable booking trends.
- H reported first-quarter FY23 sales of $1.68 billion, up 31.4% year over year, beating the consensus of $1.58 billion.
- Adjusted EPS of $0.41 missed the analyst consensus of $0.48.
- Owned and leased hotels segment results were led by continued recovery from group and business travel. Additionally, strong operating performance led to improved margins for the comparable set of properties.
- Comparable system-wide RevPAR increased 42.9% Y/Y, while comparable owned and leased hotels RevPAR increased 52.9%.
- Net Rooms Growth was approximately 7.0% in Q1, and the pipeline of executed management or franchise contracts was about 117,000 rooms.
- At quarter-end, Hyatt Hotels' total liquidity was approximately $2.5 billion, with $1.05 billion of cash and equivalents and short-term investments.
- "During the quarter, the recovery in Asia Pacific was particularly remarkable with broad improvements across the region. We continue to experience favorable booking trends and our outlook remains optimistic," said CEO Mark Hoplamazian.
- Outlook: Hyatt expects FY23 capital expenditure to be $200 million. The company currently expects to grow net rooms by approximately 6%. It expects system-wide constant RevPAR to grow 12%-16% (prior view 10%-15%).
- Price Action: H shares are trading lower by 2.67% at $114.97 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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