Investment Community Teleconference Set for February 20, 2025 at 8 a.m. ETTORONTO, Jan. 17, 2025 /PRNewswire/ - Hydro One Limited (TSX: H), the largest electric transmission and distribution utility in Ontario, plans to release its fourth quarter financial results the morning of February 20, 2025, before North American financial markets open. A summary of the results will be distributed by newswire and the complete MD&A and financial statements will be posted at www.hydroone.com/investors and www.sedarplus. ...

Building upon its expansion in the all-inclusive segment, Hyatt Hotels Corporation (H) entered a long-term, asset-light strategic joint venture (JV) with Grupo Piñero. The partnership, headquartered in Palma de Mallorca, Spain, will oversee Bahia Principe Hotels & Resorts properties and own the Bahia Principe brand. This move enhances the company’s presence in the growing all-inclusive market.The 50/50 joint venture broadens Hyatt’s portfolio, creating more opportunities for guests and World of Hyatt member ...

Hyatt Hotels Corporation (H) has left no stone unturned to expand its portfolio and strengthen the company’s position in the hospitality sector. The company is not only focusing on new hotel openings but also concentrating on acquisitions.Recently, the company entered into exclusive discussions with Playa Hotels & Resorts N.V. (PLYA) regarding potential strategic options, including the possible acquisition of Playa.Playa Hotels & Resorts, known for its all-inclusive resort offerings, presents an attractive ...

Core Insights - The article introduces "The Future Investor with Albert Anthony," a new series of curated research articles on the Seeking Alpha platform aimed at building a diversified portfolio and identifying future performance drivers [1] - Albert Anthony, the author, has covered over 200 stocks since 2023 and has gained over 1.07K followers on the platform [1] - A new book titled "The Future Investor: Growing a Diversified Portfolio (2025 edition)" is in development, indicating a commitment to educating investors [1] Author Background - Albert Anthony has a diverse background, growing up in a Croatian-American family in the New York City/New Jersey area and has also lived in Austin, Texas [1] - He has experience as an information systems analyst, including a position at Charles Schwab, and holds a B.A. in political science from Drew University [1] - The author has completed certification programs from various institutions, focusing on capital markets and securities [1] Personal Interests - Albert Anthony manages a small equities portfolio called the Future Investor Fund and actively participates in business and innovation conferences in the US and Croatia [1] - He has experience in media, having appeared in film and TV productions in Europe, and is an active member of the Croatian Association of Economists since 2024 [1]

Core Viewpoint - Hyatt Hotels Corporation is leveraging rising demand, new hotel openings, and strategic acquisitions to enhance growth, supported by an asset-light business model and loyalty programs [1] Group 1: Financial Performance - Shares of Hyatt have increased by 19.7% year-to-date, underperforming the Zacks Hotels and Motels industry's 26.5% growth [2] - In Q3 2024, system-wide comparable RevPAR rose by 3% year-over-year, driven by improved business and group travel [4] - Business transient revenues grew approximately 16% year-over-year in Q3 2024, indicating strong momentum in this customer segment [4] Group 2: Revenue Growth Drivers - Group rooms revenues increased by 6% year-over-year in Q3 2024, contributing to a RevPAR growth of 2.8% in upper upscale brands [5] - The company anticipates continued strength in business and group travel segments into 2025 [5] Group 3: Expansion and Acquisitions - In Q3 2024, Hyatt added 16 new hotels, resulting in a 4.3% increase in net room growth, with expectations for net room growth to rise between 7.75% and 8.25% year-over-year in 2024 [6][11] - A joint venture with Grupo Piñero will add 23 resorts and over 12,000 rooms to Hyatt's portfolio, increasing its all-inclusive offerings by 30% [7] - The acquisition of Standard International added 22 hotels with approximately 2,000 rooms, enhancing Hyatt's lifestyle segment [9] Group 4: Asset-Light Strategy - Hyatt has focused on an asset-light strategy, generating $2.6 billion in gross proceeds from asset dispositions over three years, with a significant sale of Hyatt Regency Orlando for $1.07 billion [10] - The company plans to further reduce hotel ownership and expects to exceed an 80% asset-light earnings mix by 2025 [11] Group 5: Earnings Estimates - The Zacks Consensus Estimate for Hyatt's 2024 earnings per share has increased to $3.89, indicating a 52% year-over-year growth potential [13]

Hotel stocks have been initial beneficiaries of the Trump pump. In the days following the U.S. presidential election, many hotel stocks are seeing high single-digit gains as investors move off the sidelines and start to pick winners.  As we head into the holiday season, consumer discretionary stocks are getting attention. And it’s easy to see why the hospitality industry is a good place to hunt in that sector. Although consumers have cut back on other expenses, they still have shown a willingness to travel. ...

Core Insights - The "Experiential Luxury in China" report highlights a recovery in tourist arrivals in 2024, which is positively impacting the experiential luxury market despite economic challenges such as rising living costs [1][4] - There is a notable shift among consumers towards spending on meaningful experiences rather than material goods, indicating a changing consumer behavior in the luxury sector [1][4] Market Overview - The report provides a comprehensive analysis of the Experiential Luxury market in China, including retail sales data, growth sectors, leading companies, and brands [2][4] - Key product categories covered include Luxury Foodservice and Luxury Hotels, which are significant drivers of growth in the market [2] Data Insights - The report includes historical and forecasted market sizes, company shares, brand shares, and distribution data, offering a detailed view of market dynamics [3] Key Findings - In 2024, there is a clear trend towards prioritizing experiences over possessions, exemplified by the Ritz-Carlton winning the Leading Luxury Hotel award [4] - Hyatt Corp continues to lead the market in 2023, with ongoing new hotel openings contributing to its competitive edge [4] - The integration of AI in Online Travel Agencies (OTAs) is noted, alongside a gradual emergence of sustainability as a concern in the luxury travel sector [4] Prospects and Opportunities - The experiential luxury market in China is expected to experience a bright forecast period, driven by increased domestic travel and a focus on sustainability in business travel [5] - Anticipated rising sales and new luxury hotel openings are expected despite prevailing economic uncertainties [5] Category Data - The report includes detailed sales data for Experiential Luxury by category from 2019 to 2024, along with percentage value growth and forecasts for 2024-2029 [5]

Financial Data and Key Metrics - System-wide RevPAR grew by 3% in Q3 2024, with luxury brands showing the strongest growth [12] - Leisure transient revenue decreased by approximately 4%, driven by declines in the United States and Greater China [12] - Group rooms revenue increased by approximately 6%, with strong performance in both the U S and Europe [14] - Business transient revenue grew by approximately 16%, with similar growth in the U S [15] - World of Hyatt membership reached a record 51 million, a 22% increase year-over-year [16] - Gross fees for the quarter were $268 million, up 11% year-over-year [41] - Adjusted EBITDA for the quarter was $275 million, a 9% increase compared to the previous year [44] Business Line Performance - Leisure transient revenue declined due to weaker demand in the U S and Greater China [12] - Group rooms revenue growth was driven by corporate meetings and social events, particularly in the U S and Europe [14][36] - Business transient revenue growth was led by large corporate accounts, especially in major urban markets [15][36] - All-inclusive resorts in the Americas saw a 10% increase in bookings for the festive period and over 20% for Q1 2025 [13] - Loyalty program engagement was strong, with a 16% increase in co-branded credit card spending through the first nine months of 2024 [16] Market Performance - RevPAR in the Americas (excluding the U S) increased by approximately 4%, while all-inclusive properties in the Americas reported a 5% decline in net package RevPAR due to hurricanes [37] - Greater China saw a 7% decline in RevPAR, driven by a 9% drop in domestic travel, though international inbound travel showed moderate growth [38] - Asia-Pacific (excluding Greater China) reported a 10% increase in RevPAR, driven by strong inbound travel from Greater China and the U S [39] - Europe experienced a 15% increase in RevPAR, driven by the Summer Olympics in Paris and Euro 2024 in Germany [40] Strategy and Industry Competition - The company continues to focus on its asset-light business model, with significant growth in management and franchise fees [11][29] - Hyatt's pipeline expanded to 135,000 rooms, a 10% increase year-over-year, with significant activity in the U S and Greater China [18] - The company completed the acquisition of Standard International, adding 22 hotels and approximately 2,000 rooms, with plans for further expansion [25] - A joint venture with Grupo Pinero will add 23 all-inclusive resorts, expanding Hyatt's all-inclusive portfolio by approximately 30% [27] - Hyatt has returned $4 4 billion to shareholders, including $4 2 billion in share buybacks, as part of its capital allocation strategy [32] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of strong demand levels, supported by forward booking activity [38] - The company expects full-year system-wide RevPAR growth of 3% to 4%, with U S RevPAR growth projected at 1% to 1 5% [49] - Greater China's RevPAR is expected to improve in Q4 due to government stimulus measures, leading to flat full-year growth compared to 2023 [50] - Net rooms growth is expected to be in the range of 7 75% to 8 25%, with potential adjustments based on the Grupo Pinero joint venture closing [51] - Adjusted EBITDA for 2024 is expected to range from $1 1 billion to $1 12 billion, a 5% increase at the midpoint [53] Other Important Information - Hyatt completed the sale of Hyatt Regency Orlando for $1 07 billion, marking the completion of its third asset disposition commitment [23] - The company repaid $750 million in 2024 notes, reducing total debt outstanding to approximately $3 1 billion [46] - Hyatt's total liquidity as of September 30, 2024, was approximately $2 6 billion, including $1 1 billion in cash and short-term investments [46] Q&A Session Summary Question: Drivers of the updated guidance for net rooms growth and the impact of the Grupo Pinero joint venture [56] - Net rooms growth was impacted by slippage of over 2,000 rooms into 2025 and higher-than-expected attrition, primarily due to brand standards and market-specific issues [57][58] - The Grupo Pinero joint venture is expected to contribute incremental management fees and other revenues, with more details to be provided after the transaction closes [66][69] Question: Credit card fees and renewal timing [71] - Hyatt's co-branded credit card spending increased by 16% year-over-year, driven by the growing World of Hyatt membership base [16][72] - The current credit card arrangement is set to expire towards the end of 2025, with ongoing discussions for renewal [75] Question: Impact of hurricanes on distribution and destination business [77] - Hurricanes negatively impacted bookings in the Caribbean and Southeastern U S, leading to a $46 million EBITDA hit in Q3 [78][121] - Leisure booking trends have accelerated into Q4, with strong forward bookings for resorts and distribution business [79][80] Question: Attrition rates and brand standards [81] - Attrition rates were higher than expected in 2024, primarily due to brand standard issues and market-specific challenges [58][81] - Hyatt does not currently have a brand for downgrading hotels, which may lead to higher attrition in the future [82] Question: Opportunities for inorganic growth and market multiples [96] - Platform acquisitions are typically valued at high multiples initially, with expectations of reducing to low double-digits over time [97][100] - Hyatt has significant white space in underpenetrated markets, providing opportunities for growth through acquisitions and conversions [101] Question: Leisure demand mix post-Grupo Pinero joint venture [103] - Leisure demand currently accounts for 50% to 55% of total demand, with the joint venture expected to increase this slightly [103] Question: Optimal number of brands and potential streamlining [122] - Hyatt aims to add brands with distinct identities and experiences, avoiding overlap with existing brands [123] - The company is forming dedicated lifestyle and luxury groups to better serve distinct customer segments [127] Question: Gross net unit growth and transient business pace [129] - Gross net unit growth of 6% includes run-of-the-mill conversions but excludes large portfolio deals [129] - Transient business pace for Q1 2025 is strong, primarily driven by occupancy rather than ADR [132]

Financial Performance - Consolidated revenues increased by $7 million, or 0.5%, for the quarter ended September 30, 2024, compared to the same period in 2023[183]. - Net income attributable to Hyatt Hotels Corporation was $471 million, a $403 million increase compared to the same quarter in 2023[187]. - Consolidated Adjusted EBITDA for the quarter was $275 million, an increase of $22 million compared to the same period in 2023[187]. - Income before income taxes for Q3 2024 was $608 million, up from $101 million in Q3 2023, representing a 497.9% increase[223]. - Adjusted EBITDA for the three months ended September 30, 2024, was $210 million, an increase of 9.4% compared to $192 million in the same period of 2023[244]. - Adjusted EBITDA for owned and leased hotels was $49 million for the three months ended September 30, 2024, a decrease of 15.1% from $58 million in the same period of 2023[254]. - Adjusted EBITDA for the distribution segment was $38 million for the three months ended September 30, 2024, an increase of 26.1% from $31 million in 2023[259]. - Adjusted EBITDA for owned and leased hotels for the nine months ended September 30, 2024, was $156 million, a decrease of 15.5% from $185 million in the same period of 2023[254]. - The company reported a 141.3% increase in provision for income taxes, amounting to $259 million for the nine months ended September 30, 2024, compared to $107 million in the same period of 2023[282]. Revenue Breakdown - Comparable system-wide hotels revenue per available room (RevPAR) was $146, representing a 3.0% improvement in constant currency compared to the prior year[184]. - Gross fee revenues increased by $25 million, driven by improved operating performance and growth in the hotel portfolio[183]. - Comparable system-wide all-inclusive resorts Net Package RevPAR was $204, a 0.9% decrease compared to the prior year[185]. - Group rooms revenues increased approximately 6% compared to 2023, indicating strong growth in group travel demand[186]. - The increase in base management fees for the three months ended September 30, 2024, was primarily driven by the Americas and Europe[191]. - Franchise fees increased during the three months ended September 30, 2024, primarily driven by the United States, and during the nine months ended September 30, 2024, driven by the Americas and Europe[194]. - Other fees increased during the three and nine months ended September 30, 2024, primarily due to management and royalty fees related to the Unlimited Vacation Club and increased license fees from co-branded credit card programs[195]. - Total owned and leased revenues for the three months ended September 30, 2024, were $287 million, a decrease of 13.1% compared to $329 million in 2023, while for the nine months, total revenues were $910 million, down 7.6% from $984 million[198]. - Comparable owned and leased revenues increased by 7.2% to $679 million for the nine months ended September 30, 2024, compared to $632 million in 2023, driven by group and business transient demand[198]. - Revenues for reimbursed costs increased by 14.9% to $867 million for the three months ended September 30, 2024, and by 10.7% to $2.511 billion for the nine months[202]. Shareholder Returns - The company returned $672 million to shareholders through $657 million in share repurchases and $15 million in dividends during the quarter[188]. - The company repurchased 7,923,062 shares of Class A and Class B common stock for an aggregate purchase price of $1,179 million during the nine months ended September 30, 2024[295]. - The company paid three quarterly cash dividends of $0.15 per share on outstanding shares totaling $46 million during the nine months ended September 30, 2024[295]. Expenses and Costs - General and administrative expenses for the three months ended September 30, 2024, increased by 3.4% to $126 million, while adjusted expenses decreased by 14.2% to $100 million[205]. - Transaction and integration costs decreased by $5 million during the nine months ended September 30, 2024, primarily due to costs related to previous acquisitions[212]. - Interest expense increased by $9 million in Q3 2024 compared to Q3 2023, primarily due to the issuance of senior notes[221]. - The company recognized $35 million in impairment charges related to property and equipment during Q3 2024[226]. - Other income (loss), net increased by $44 million in Q3 2024 compared to Q3 2023[228]. Market Performance - Comparable system-wide RevPAR increased by 3.0% to $146 for the three months ended September 30, 2024, compared to the same period in 2023[234]. - Occupancy rate for comparable system-wide hotels was 72.5% for the three months ended September 30, 2024, an increase of 1.3 percentage points from 2023[234]. - In Europe, RevPAR increased by 15.0% to $209, with an occupancy rate of 74.9% for the three months ended September 30, 2024[236]. - The increase in RevPAR during the three months ended September 30, 2024, was driven by strong ADR, particularly due to events like the Democratic National Convention and the Paris Summer Olympics[252]. Capital Expenditures and Investments - The company invested $119 million in capital expenditures during the nine months ended September 30, 2024[292]. - The company acquired the me and all hotels brand name for $28 million during the nine months ended September 30, 2024[292]. - Total capital expenditures for the nine months ended September 30, 2024, were $119 million, a decrease from $134 million in the same period of 2023[302]. Debt and Financial Position - The company's debt-to-total capital ratio was 45.9% as of September 30, 2024, compared to 46.2% as of December 31, 2023[300]. - The company had $101 million in letters of credit issued directly with financial institutions outstanding at September 30, 2024, down from $256 million at December 31, 2023[306]. - The company has no balance outstanding on its revolving credit facility as of September 30, 2024[305]. - The company continues to be exposed to market risks from changes in interest rates and foreign currency exchange rates, with no material changes reported as of September 30, 2024[309].

Core Viewpoint - Hyatt Hotels Corporation reported third-quarter 2024 results with earnings exceeding expectations but revenues falling short, leading to a 2% decline in share price during pre-market trading [1] Financial Performance - Adjusted earnings per share (EPS) were 94 cents, surpassing the Zacks Consensus Estimate of 90 cents, and up from 74 cents in the same quarter last year [2] - Revenues totaled $1,629 million, missing the consensus mark of $1,638 million, but reflecting a year-over-year increase of 0.4% [2] - Owned and Leased revenues decreased by 12.8% to $287 million, while Other revenues plummeted 83.5% to $13 million; Distribution revenues fell 3.5% to $221 million [3] - Net fees rose 4.3% year over year to $241 million, and revenues for reimbursed costs increased to $867 million from $754 million in the prior-year quarter [3] Operating Highlights - Adjusted EBITDA was $275 million, an 8.9% increase year over year, though below the expected $292.6 million [5] - Adjusted EBITDA for Management and Franchising and Distribution segments increased by 8.9% and 26.1% to $210 million and $38 million, respectively; however, Owned and Leased segment's adjusted EBITDA fell 12.5% to $63 million [5] Balance Sheet - As of September 30, 2024, cash and cash equivalents stood at $1,134 million, down from $1,957 million in the previous quarter; total liquidity was $2.6 billion [6] - Total debt was reported at $3.14 billion as of September 30, 2024 [6] Business Updates - In Q3, 16 new hotels (2,589 rooms) were added to Hyatt's system, with a pipeline of approximately 690 hotels (about 135,000 rooms) as of September 30, 2024 [7] 2024 Outlook - For 2024, adjusted general and administrative expenses are expected to be between $425 million and $435 million, with capital expenditures projected at $170 million [8] - Net rooms growth is anticipated to be between 7.75% and 8.25% year over year, with a range of 4% to 4.5% excluding the Bahia Principe transaction [8] - System-wide RevPAR is expected to rise by 3-4% from 2023 levels, with adjusted EBITDA now forecasted between $1.1 billion and $1.12 billion, down from a prior range of $1.13 billion to $1.17 billion [9] - Free cash flow is anticipated to be in the range of $380 million to $410 million [9]