The Zacks Hotels and Motels industry in 2024 faces challenges from rising costs, geopolitical tensions and ongoing economic uncertainty. However, industry participants are concentrating on growth strategies, including expanding their portfolios, converting properties, forging strategic partnerships and enhancing loyalty programs. The industry has shown resilience through cost-cutting measures and digital innovations. Hotel operators remain focused on balancing profitability while ensuring guest satisfaction ...

Company Overview - Hyatt Hotels reported second-quarter 2024 results with adjusted earnings per share (EPS) of $1.53, surpassing the Zacks Consensus Estimate of 95 cents, and an increase from the EPS of 86 cents in the same quarter last year [3] - Revenues totaled $1,703 million, falling short of the consensus estimate of $1,756 million and reflecting a year-over-year decline of 0.1% [3] - The decline in revenues was attributed to a 7.9% decrease in Owned and Leased revenues to $314 million and an 85.9% drop in Other revenues, partially offset by a 10.6% increase in Net fees to $259 million and a 1.1% rise in Distribution revenues to $278 million [3] Operating Performance - Adjusted EBITDA was reported at $307 million, marking a 10.1% increase year over year [4] - Adjusted EBITDA for Management and Franchising increased by 10.5% to $222 million, while Distribution saw a 23.9% rise to $43 million; however, Owned and Leased segment's adjusted EBITDA declined by 7.4% to $79 million [4] Financial Position - As of June 30, 2024, Hyatt had cash and cash equivalents of $1,957 million, a significant increase from $794 million in the previous quarter, with total liquidity at $3.5 billion [5] - Total debt stood at $3.9 billion as of the same date [5] Business Development - In Q2 2024, Hyatt opened 18 new hotels, adding 3,251 rooms to its portfolio, and had a pipeline of approximately 670 hotels (about 130,000 rooms) under executed management or franchise contracts as of June 30, 2024 [6] 2024 Outlook - For 2024, Hyatt anticipates adjusted general and administrative expenses between $425 million and $435 million, with capital expenditures projected at $170 million [7] - The company expects net room growth of 5.5% to 6% year over year and a system-wide RevPAR increase of 3-4%, revised down from the previous estimate of 3-5% [7] - Adjusted EBITDA is now expected to range from $1.13 billion to $1.17 billion, down from the prior range of $1.15 billion to $1.19 billion [7] Industry Comparison - Hyatt Hotels is part of the Zacks Hotels and Motels industry, where Marriott International reported revenues of $6.44 billion for the last quarter, reflecting a year-over-year increase of 6% and an EPS of $2.50 compared to $2.26 a year ago [11] - Marriott's current quarter earnings are expected to be $2.31 per share, indicating a 9.5% change from the previous year, with a Zacks Rank of 3 (Hold) [11]

Hyatt Hotels Corporation‘s (H) shares rose 13.5% in the past month. The stock surpassed the Zacks Hotels and Motels industry's 9.4% rise and outperformed the broader Zacks Consumer Discretionary sector's 9.3% rise in the same period. Hyatt's impressive stock performance reflects the company's strong position in the industry, driven by robust demand and strategic initiatives aimed at expanding its global footprint.H also outpaced competitors like Choice Hotels International (CHH) , up 2.1%, and Marriott Inte ...

Hyatt Hotels Corporation (H) is set to acquire the brands and most affiliates of Standard International, the parent company of The Standard and Bunkhouse Hotels brands.The base purchase price to be paid by Hyatt upon closure will be $150 million, with an extra $185 million over time as additional properties enter the portfolio. The deal is expected to close in late 2024 upon the satisfaction of customary closing conditions.Perks of the BuyoutUpon acquiring Standard International, Hyatt will welcome manageme ...

TORONTO, Aug. 14, 2024 /PRNewswire/ - Hydro One Limited (TSX: H), announced that its Board of Directors has declared a quarterly cash dividend to common shareholders of $0.3142 per share to be paid on September 27, 2024 to shareholders of record on September 11, 2024.Unless indicated otherwise, all common share dividends paid by Hydro One Limited to shareholders are designated as "eligible" dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation. Such quarterly divide ...

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 w ...

Financial Data and Key Metrics Changes - System-wide RevPAR growth was reported at 4.7%, with group and business transient segments being the strongest [8][21] - Leisure transient revenue decreased approximately 2% in the quarter but was up 2% when excluding certain impacts [8][21] - Gross fees reached a record of $275 million, up 12% year-over-year [24] Business Line Data and Key Metrics Changes - Group room revenue increased approximately 8% in the quarter, with strong results in major US urban markets [9][21] - Business transient revenue increased approximately 14%, with notable growth in the United States [10][21] - Management and franchising segment adjusted EBITDA increased approximately 11% [25] Market Data and Key Metrics Changes - RevPAR in the Americas, excluding the United States, increased approximately 9% [22] - RevPAR in Greater China decreased by approximately 3% due to unfavorable macro conditions [22] - Asia Pacific, excluding Greater China, saw RevPAR up approximately 18% [23] Company Strategy and Development Direction - The company continues to expand its loyalty program, with World of Hyatt membership reaching approximately 48 million members, a 21% increase year-over-year [11] - The pipeline reached a record of approximately 130,000 rooms, representing a 9% increase year-over-year [15] - The acquisition of me and all hotels brands is expected to accelerate growth in the upscale segment in Europe [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining high levels of demand, significantly above pre-pandemic levels [35] - The outlook for the second half of 2024 anticipates group and business transient revenue growth to outpace leisure transient [28] - Management noted that the economic environment remains stable, with expectations for continued growth in net rooms [67] Other Important Information - The company completed asset sales realizing $1.5 billion in gross proceeds towards a $2 billion commitment [18] - Adjusted EBITDA is expected to be in the range of $1.135 billion to $1.175 billion, a 10% increase at the midpoint compared to last year [30] Q&A Session Summary Question: Can you elaborate on leisure transient patterns and outlook? - Management noted that demand is evening out over time, with disruptions from airline traffic being short-lived, and overall demand remains high [34][35] Question: What are the recent trends in China development and pipeline? - Management indicated that Greater China has been a significant contributor to room openings and pipeline growth, with a focus on high-quality openings [41][42] Question: How is group pacing for 2025? - Group bookings for 2025 are strong, with about 60% of total business on the books, indicating a well-balanced demand across various sectors [48] Question: What is the visibility into RevPAR or bookings in China? - The booking window in Greater China is typically short, with group business being a smaller percentage compared to the US, impacting visibility [78] Question: How does the company plan to use proceeds from asset sales? - The company will announce details regarding the use of proceeds from asset sales once transactions are closed, including impacts on shareholder returns [45]

Financial Performance - Consolidated revenues decreased by $2 million for the quarter ended June 30, 2024, compared to the same quarter in 2023, while gross fee revenues increased by $29 million [176]. - Net income attributable to Hyatt Hotels Corporation for the quarter ended June 30, 2024, was $359 million, a $291 million increase from the same period in 2023 [180]. - Consolidated Adjusted EBITDA for the quarter ended June 30, 2024, was $307 million, an increase of $28 million compared to the same quarter in 2023 [180]. - For the six months ended June 30, 2024, net income attributable to Hyatt Hotels Corporation reached $881 million, up 598.8% from $126 million in 2023 [273]. - Adjusted EBITDA for the six months ended June 30, 2024, was $566 million, a slight increase of 2.3% compared to $553 million in the prior year [273]. - Income before income taxes increased to $462 million, a 391.4% increase compared to $95 million in the same period of 2023 [219]. - The provision for income taxes for the three months ended June 30, 2024, was $103 million, up from $27 million in the same period of 2023, reflecting a 294.7% increase [219]. Revenue Breakdown - Comparable system-wide hotels revenue per available room (RevPAR) for the quarter ended June 30, 2024, was $149, representing a 4.7% improvement compared to the same quarter in 2023 [177]. - Comparable system-wide all-inclusive resorts Net Package RevPAR for the quarter ended June 30, 2024, was $226, a 3.0% improvement compared to the same quarter in 2023 [178]. - Total segment revenues for the three months ended June 30, 2024, were $1,124 million, a 5.8% increase from $1,062 million in the same period of 2023 [221]. - Gross fees for the three months ended June 30, 2024, reached $288 million, representing a 10.1% increase from $262 million in the same period of 2023 [221]. - Comparable owned and leased revenues increased by $14 million (5.0%) to $303 million for the three months ended June 30, 2024, compared to $289 million in 2023 [189]. - Distribution revenues increased by $3 million for the three months ended June 30, 2024, primarily due to commission fee revenues related to Mr & Mrs Smith, offset by a decrease from ALG Vacations [191]. Expenses and Costs - General and administrative expenses decreased by $17 million (13.4%) to $117 million for the three months ended June 30, 2024, compared to $134 million in 2023 [197]. - Comparable owned and leased expenses increased by $8 million (3.4%) to $228 million for the three months ended June 30, 2024, compared to $220 million in 2023 [199]. - Distribution expenses increased by $8 million for the three months ended June 30, 2024, primarily driven by ALG Vacations due to an increase in variable costs [201]. - Reimbursed costs increased by $64 million (8.1%) to $853 million for the three months ended June 30, 2024, compared to $789 million in 2023 [205]. Shareholder Returns - The company returned $150 million to shareholders through $134 million in share repurchases and $16 million in dividends during the quarter [181]. - During the quarter ended June 30, 2024, the company returned $150 million of capital to stockholders through $134 million of share repurchases and $16 million of quarterly dividend payments [277]. Debt and Capital Management - Total debt increased to $3,885 million as of June 30, 2024, resulting in a total debt-to-total capital ratio of 50.2% [286]. - Net consolidated debt decreased to $1,928 million as of June 30, 2024, with a net debt-to-total capital ratio of 24.9% [286]. - The company issued the 2029 Notes and the 2034 Notes during the three months ended June 30, 2024, receiving $786 million in net proceeds for debt repayment and general corporate purposes [275]. - The company has realized $1,496 million of proceeds from the net disposition of owned assets as part of its commitment to achieve $2.0 billion by the end of 2024 [276]. Acquisitions and Investments - The company acquired Dream Hotel Group for $125 million in cash and Mr & Mrs Smith for approximately $72 million [285]. - The company issued senior notes and received approximately $786 million of net proceeds from the sale, after deducting $14 million of underwriting discounts and other offering expenses [285]. Market Performance - The number of comparable hotels for the three months ended June 30, 2024, was 1,094, with an occupancy rate of 72.9%, up 2.4 percentage points from 2023 [226]. - Occupancy rate for comparable system-wide all-inclusive resorts reached 74.0%, up 1.5 percentage points from 2023 [230]. - The company removed ten properties from comparable system-wide hotels results during the three months ended June 30, 2024 [229].

KEY TAKEAWAYSHyatt Hotels reported higher-than-expected second-quarter profit as revenue per available room (RevPAR) gained.Comparable system-wide hotels RevPAR increased 4.7% year-over-year, higher than expectations of a 4.0% gain from analysts polled by Visible Alpha.Earnings per share (EPS) of $3.46 easily surpassed analysts' estimates, but revenue of $1.7 billion missed and the company lowered the top end of its full-year RevPAR outlook. Hyatt Hotels (H) reported higher-than-expected second-quarter prof ...

Hyatt Hotels (H) reported $1.7 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 0.1%. EPS of $1.53 for the same period compares to $0.82 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.76 billion, representing a surprise of -3.00%. The company delivered an EPS surprise of +61.05%, with the consensus EPS estimate being $0.95.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...