Hyatt Reports Mixed Q2 Results With Record Fee Revenue, Exceeds Earnings Estimates

Hyatt Hotels Corporation H reported second-quarter 2024 sales of $1.703 billion, missing the consensus estimate of $1.705 billion. Net room growth was approximately 4.6% year-over-year.

Comparable system-wide hotels’ RevPAR increased by 4.7%, and comparable system-wide all-inclusive resorts’ Net Package RevPAR increased by 3% YoY.

“System-wide RevPAR grew by 4.7% and net rooms growth was 4.6%, generating record gross fee revenue of $275 million in the quarter. Our pipeline reached a new record of 130,000 rooms, up 9% year-over-year, reflecting strong developer interest in our brands. We saw continued growth of the World of Hyatt loyalty program, with membership increasing by 21% year-over-year to a record 48 million members,” commented Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt,

Adjusted EBITDA grew 10% to $307 million. Adjusted EPS of $1.53 beats the analyst consensus of $1.17.

Hyatt repurchased 907 thousand Class A common stock shares for $134 million in the second quarter.

Hyatt’s total liquidity of about $3.5 billion with $1.957 billion of cash and cash equivalents and short-term investments, and borrowing availability of $1.496 Billion under Hyatt’s revolving credit facility, net of letters of credit outstanding.

Dividend: The company declared a cash dividend of $0.15 per share for the third quarter of 2024, payable on Sept. 10, 2024, to Class A and Class B stockholders of record as of Aug. 27, 2024.

2024 outlook: The company expects to grow net rooms by 5.5% – 6%. It expects comparable system-wide hotels RevPAR to increase 3% to 4% on a constant currency basis.

The company’s full-year Adjusted EBITDA is projected between $1.135 billion and $1.175 billion; it expects net income of $1.055 billion -$1.115 billion and Free cash flow of $560 million-$610 million.

Price Action: H shares are trading higher by 0.21% at $134.22 at the last check Tuesday.

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