Hyatt Hotels Corporation (H) has been capitalizing on rising demand, new hotel openings and strategic acquisitions. Furthermore, its emphasis on both organic and inorganic growth, supported by loyalty programs and an asset-light business model, bodes well.Shares of Hyatt have risen 19.7% in the year-to-date period compared with the Zacks Hotels and Motels industry's 26.5% growth. Although the company has underperformed the industry in the said period, strong momentum across all group customer segments will ...

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].

Hyatt Hotels Corporation (H) delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. Following the results, the company’s shares were down 2% in today’s pre-market trading session.Hyatt’s Q3 Earnings & RevenuesHyatt reported adjusted earnings per share (EPS) of 94 cents, beating the Zacks Consensus Estimate of 90 cents. In the year-ago quarter, the company reported an EPS of 74 cents.Find the latest EPS estimates and surprises on Zacks Earnings ...

Core Insights - Hyatt Hotels reported $1.63 billion in revenue for Q3 2024, a year-over-year increase of 0.4%, with an EPS of $0.94 compared to $0.70 a year ago, indicating a positive trend in earnings despite a slight revenue miss against estimates [1] - The company experienced a revenue surprise of -0.56% against the Zacks Consensus Estimate of $1.64 billion, while the EPS exceeded expectations by 4.44% [1] Financial Performance Metrics - Total owned and leased hotels stood at 10,296, below the estimated 10,540 [3] - Worldwide Hyatt brand properties had 326,845 rooms, compared to the average estimate of 330,145 [3] - RevPAR for comparable systemwide hotels was $146.18, lower than the estimated $150.20 [3] - ADR for comparable systemwide hotels was $201.75, compared to the estimate of $205.17 [3] - Revenues from owned and leased hotels were $287 million, exceeding the estimate of $255.56 million but reflecting a -12.8% change year-over-year [3] - Distribution and destination management revenues were $221 million, slightly below the estimate of $222.32 million, with a -0.5% change year-over-year [3] - Other revenues were reported at $13 million, significantly lower than the average estimate of $39.63 million, representing an -83.5% year-over-year change [3] - Management and franchise fees generated $268 million, compared to the estimate of $280.24 million, showing a +7.2% change year-over-year [3] - Contra revenues were reported at -$27 million, worse than the estimate of -$13.67 million, reflecting a +125% year-over-year change [3] - Net fees revenues were $241 million, below the estimate of $266.57 million [3] - Revenues for reimbursed costs were $867 million, slightly above the estimate of $856.85 million, with a +15% year-over-year change [3] - Franchise fees amounted to $119 million, compared to the estimate of $125.39 million, indicating a +13.3% change year-over-year [3] Stock Performance - Shares of Hyatt Hotels have returned +4.3% over the past month, outperforming the Zacks S&P 500 composite's +1% change, with a current Zacks Rank of 3 (Hold) suggesting potential performance in line with the broader market [4]

Group 1 - Hyatt Hotels reported quarterly earnings of $0.94 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, and up from $0.70 per share a year ago, representing an earnings surprise of 4.44% [1] - The company posted revenues of $1.63 billion for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.56%, and showing a year-over-year increase from $1.62 billion [2] - Over the last four quarters, Hyatt has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Group 2 - The stock has gained approximately 20.5% since the beginning of the year, compared to the S&P 500's gain of 21.9% [3] - The future performance of Hyatt Hotels' stock will largely depend on management's commentary during the earnings call and the outlook for earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $1.68 billion, and for the current fiscal year, it is $3.87 on revenues of $6.74 billion [7] Group 3 - The Hotels and Motels industry, to which Hyatt belongs, is currently ranked in the bottom 10% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The Zacks Rank for Hyatt Hotels is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Net Income for Q3 2024 was $471 million, with Adjusted Net Income at $96 million; Diluted EPS was $4.63 and Adjusted Diluted EPS was $0.94[1] - Full year Net Income is projected to be between $1,400 million and $1,450 million, with Adjusted EBITDA projected between $1,100 million and $1,120 million[1] - Total revenues for the three months ended September 30, 2024, were $1,629 million, compared to $1,622 million for the same period in 2023, reflecting a slight increase[20] - Net income for the three months ended September 30, 2024, was $471 million, significantly up from $68 million in the same period of 2023[20] - Earnings per diluted share for the three months ended September 30, 2024, were $4.63, compared to $0.63 for the same period in 2023[20] - For the three months ended September 30, 2024, net income attributable to Hyatt Hotels Corporation was $471 million, compared to $68 million in the same period of 2023, representing a significant increase of 594%[35] - Adjusted net income attributable to Hyatt Hotels Corporation for the three months ended September 30, 2024, was $96 million, up from $79 million in 2023, reflecting a 22% increase[35] - The diluted earnings per share for the third quarter of 2024 was $4.63, compared to $0.63 in the same quarter of 2023, marking a substantial increase of 638%[35] Revenue Metrics - Comparable system-wide hotels RevPAR increased by 3.0% year-over-year, while all-inclusive resorts Net Package RevPAR decreased by 0.9%[1] - System-wide RevPAR (Revenue per Available Room) for the three months ended September 30, 2024, was $146.18, a 3.0% increase compared to the same period in 2023[21] - System-wide hotels achieved a RevPAR of $142.85 in 2024, representing a 4.4% increase compared to 2023, with an occupancy rate of 70.3%, up 2.0 percentage points[22] - The Americas (excluding the United States) saw a RevPAR of $180.01, a 9.3% increase, with an occupancy rate of 70.1%, up 3.0 percentage points[22] - Greater China experienced a slight decline in RevPAR to $88.46, down 0.1%, with an occupancy rate of 69.7%, up 2.7 percentage points[22] - The Europe region reported a RevPAR of $171.36, a 12.1% increase, with an occupancy rate of 68.7%, up 3.8 percentage points[22] - System-wide all-inclusive resorts achieved a RevPAR of $245.47, a 4.8% increase, with an occupancy rate of 75.6%, up 1.2 percentage points[22] - The Composite Luxury segment reported a RevPAR of $200.17, a 4.1% increase, with an occupancy rate of 69.6%, up 1.4 percentage points[24] - The Andaz brand achieved a RevPAR of $226.82, a 6.9% increase, with an occupancy rate of 72.8%, up 3.9 percentage points[24] - The Park Hyatt brand reported a RevPAR of $253.46, an 8.0% increase, with an occupancy rate of 66.0%, up 2.6 percentage points[24] - Dreams Resorts & Spas achieved a RevPAR of $222.90, an 8.5% increase, with an occupancy rate of 74.7%, up 2.3 percentage points[26] Shareholder Returns - The Company repurchased approximately 4.5 million shares of common stock for an aggregate purchase price of $657 million[1] - Capital Returns to Shareholders for the full year is projected to be approximately $1,250 million[8] Operational Expansion - The pipeline of executed management or franchise contracts reached approximately 135,000 rooms, a 10% increase year-over-year[1] - 16 new hotels (2,589 rooms) were added to Hyatt's portfolio in Q3 2024, including notable openings like Alila Shanghai and Grand Hyatt Kunming[3] - The acquisition of Standard International was completed for approximately $150 million, with up to an additional $185 million in contingent consideration[4] - The company plans to continue its market expansion and integration of recent acquisitions, including Standard International, which closed on October 1, 2024[35] Liquidity and Cash Flow - Total liquidity as of September 30, 2024, was approximately $2.6 billion, including $1,134 million in cash and cash equivalents[6] - Free cash flow for the year ended December 31, 2024, is projected to be between $380 million and $410 million[43] Expenses and Costs - Hyatt's general and administrative expenses for the three months ended September 30, 2024, were $126 million, up from $122 million in the same period of 2023[20] - G&A expenses for Q3 2024 were $126 million, slightly up from $122 million in Q3 2023[31] - Adjusted G&A expenses decreased to $100 million in Q3 2024 from $118 million in Q3 2023[32] - Interest expense for Q3 2024 was $50 million, compared to $41 million in Q3 2023[29] - Depreciation and amortization for Q3 2024 was $81 million, down from $100 million in Q3 2023[29] - The company reported a provision for income taxes of $137 million in Q3 2024, compared to $33 million in Q3 2023[29] - Hyatt Hotels Corporation reported a decrease in overhead costs from $42 million in Q3 2023 to $36 million in Q3 2024, a reduction of 14%[35] Performance Metrics - Adjusted EBITDA for Q3 2024 was $275 million, up from $253 million in Q3 2023[29] - Adjusted EBITDA is a key performance measure for the company, assisting in consistent performance comparison across reporting periods[47] - Average Daily Rate (ADR) is a critical performance measure, reflecting the average room price attained, which influences overall revenue and profitability[56] - Comparable system-wide metrics include all properties managed or franchised, providing a basis for performance measurement across periods[58] - Net Package RevPAR combines Net Package ADR with occupancy rates, serving as an important indicator of hotel performance[62] - Adjusted G&A Expenses exclude deferred compensation and stock-based compensation, allowing for consistent performance comparisons[52] - Constant Dollar Currency analysis removes foreign exchange effects, providing a clearer view of operational performance across periods[59] - The company emphasizes the limitations of non-GAAP measures like Adjusted EBITDA and Free Cash Flow, using GAAP results for comprehensive performance evaluation[51]

Hyatt Hotels Corporation (H) is scheduled to report third-quarter 2024 results on Oct. 31, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 61.1%.H’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with the average surprise being 35.9%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Hyatt’s Trend in Estimate RevisionThe Zacks Consensus Estimate for third-quarter adjusted ...