Hyatt Hotels Corp (H) Q3 2024 Earnings Call Highlights: Strong Pipeline Growth and Strategic ...

GuruFocus News
4 min read

In This Article:

  • System-wide RevPAR Growth: 3% increase in the third quarter.

  • Leisure Transient Revenue: Decreased approximately 4% in the quarter.

  • Group Rooms Revenue: Increased approximately 6% in the quarter.

  • Business Transient Revenue: Up approximately 16% year-over-year.

  • World of Hyatt Membership: Reached approximately 51 million members, a 22% increase over the prior year.

  • Pipeline Expansion: Expanded to 135,000 rooms, a 10% increase compared to the third quarter of 2023.

  • Net Rooms Growth: Achieved 4.3% growth in the third quarter.

  • Asset Disposition Proceeds: $1.07 billion from the sale of Hyatt Regency Orlando.

  • Adjusted EBITDA: $275 million in the third quarter, a 9% increase compared to last year.

  • Share Repurchases: $407 million of Class A and $250 million of Class B common stock repurchased in the third quarter.

  • Total Debt Outstanding: Reduced to approximately $3.1 billion.

  • Total Liquidity: Approximately $2.6 billion as of September 30, 2024.

  • Full Year RevPAR Growth Outlook: Expected to be in the range of 3% to 4% compared to 2023.

  • Gross Fees Outlook: Expected to be in the range of $1.085 billion to $1.11 billion, a 13% increase at the midpoint compared to last year.

  • Adjusted EBITDA Outlook: Expected to be in the range of $1.1 billion to $1.12 billion, a 5% increase at the midpoint compared to last year.

  • Free Cash Flow Outlook: Expected to range from $380 million to $410 million.

  • Capital Return to Shareholders: Approximately $1.25 billion, including share repurchases and dividends.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Hyatt Hotels Corp (NYSE:H) reported a 3% system-wide RevPAR growth, with strong performance in luxury brands.

  • The company achieved a record number of rooms in its pipeline, representing a 10% increase compared to the third quarter of 2023.

  • World of Hyatt membership reached approximately 51 million, a 22% increase over the prior year, enhancing customer loyalty and reducing acquisition costs.

  • Hyatt completed the acquisition of Standard International, adding 22 hotels and enhancing its position in the Lifestyle segment.

  • The company successfully completed its third asset disposition commitment, realizing $2.6 billion in gross proceeds net of acquisitions.

Negative Points

  • Leisure transient revenue decreased by approximately 4% in the quarter, particularly in the United States and Greater China.

  • RevPAR in Greater China decreased by approximately 7% due to high levels of domestic travel last year and weaker demand.

  • The company experienced higher-than-expected room attrition, approaching 1.5%, which is above the typical run rate.

  • Hyatt's third-quarter results were negatively impacted by hurricane activity, particularly affecting all-inclusive properties in the Americas.

  • The company tightened its 2024 outlook ranges due to lower-than-expected results in the third quarter.

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