Hyatt's Earnings Miss Clouds Q3, Eyes Strong 2024 With Bold Pipeline And Expanding Member Base
In This Article:
Hyatt Hotels Corporation (NYSE:H) shares are trading lower on Thursday.
Total revenues were $1.629 billion, beating the consensus of $1.574 billion. The company reported that the third quarter adjusted earnings per share was 94 cents, missing the street view of $1.38.
In the quarter under review, comparable system-wide hotels RevPAR rose by 3.0% compared to the same period in 2023, while comparable system-wide all-inclusive resorts experienced a 0.9% decline in Net Package RevPAR. Net rooms growth was approximately 4.3%.
In the third quarter, 16 new hotels (or 2,589 rooms) joined Hyatt’s portfolio.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, “We reported solid third quarter results, with gross fee revenues reaching $268 million.”
Also Read: Estée Lauder Q1 Earnings: China Uncertainty Hits Beauty Giant, Withdraws FY25 Outlook, Stock Tanks
In the quarter, the company’s pipeline reached approximately 135,000 rooms, increasing 10% year-over-year, and World of Hyatt membership expanded to 51 million members, growing by 22% year-over-year.
“Our operating results and capital allocation strategy, including the completion of our 2021 asset-disposition commitment, acquisition of Standard International, and planned joint venture transaction to manage Bahia Principe branded hotels and resorts, demonstrate the strength of our asset-light earnings model leading to the return of over $1.2 billion to shareholders through share repurchases and dividends so far this year,” Hoplamazian added.
As of quarter end, total liquidity was approximately $2.6 billion with $1.134 billion of cash and equivalents and short-term investments. The company had a total debt of $3.142 billion.
The company declared a cash dividend of $0.15 per share for the fourth quarter of 2024, payable on December 6.
Outlook: Hyatt Hotels anticipates a year-over-year increase of 3% – 4% in system-wide hotels RevPAR for fiscal year 2024. The company projects net rooms growth of 7.75% to 8.25%.
Price Action: H shares are trading lower by 4.42% to $150.16 at last check Thursday.
Also Read:
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article Hyatt's Earnings Miss Clouds Q3, Eyes Strong 2024 With Bold Pipeline And Expanding Member Base originally appeared on Benzinga.com
? 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.