Why Hyatt Hotels Shares Are Gaining Today

Hyatt Hotels Corporation H shares are rising on Friday.

The company reported fourth-quarter adjusted earnings per share of 64 cents, beating the street view of 39 cents. Quarterly revenue of $1.66 billion topped the analyst consensus of $1.61 billion.

Comparable system-wide RevPAR increased 9.1% in the fourth quarter, while comparable owned and leased hotels RevPAR increased 5.9%. The growth was driven by the rapid recovery in Greater China and strengthening group demand in the U.S.

Comparable Net Package RevPAR for ALG properties increased 9.2%. The fourth quarter benefited from improved results in Cancun, with Comparable Net Package RevPAR up approximately 10%.

In the fourth quarter, 29 new hotels (or 9,648 rooms) joined Hyatt’s portfolio, inclusive of six hotels in Greater China that converted to a Hyatt brand through a strategic relationship with an affiliate of Mumian Hotels. 

As of December 31, 2023, the company had a pipeline of executed management or franchise contracts for approximately 650 hotels (approximately 127,000 rooms).

The company exited the quarter with a total debt of $3.06 billion and $896 million of cash and equivalents.

Outlook: Hyatt Hotels expects FY24 system-wide RevPAR to grow 3% to 5%. The company sees net room growth of 5.5% to 6% in FY24.

Hyatt Hotels expects FY24 net income to be approximately $560 million, with adjusted EBITDA in the range of $1.175 billion-$1.225 billion.

Price Action: H shares are trading higher by 8.84% to $147.52 on the last check Friday.