Hyatt Hotels Analysts Cut Their Forecasts Following Q2 Results

Hyatt Hotels Corporation H reported mixed results for its second quarter on Tuesday.

The company posted 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.

Adjusted EPS of $1.53 beats the analyst consensus of $1.17.

"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.

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.

Hyatt shares fell 1.4% to close at $132.02 on Tuesday.

These analysts made changes to their price targets on Hyatt following earnings announcement.

Mizuho analyst Ben Chaiken maintained Hyatt Hotels with an Outperform and lowered the price target from $204 to $200.

Macquarie analyst Chad Beynon maintained Hyatt with an Outperform and cut the price target from $168 to $164.

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