Hyatt(H)2025-05-01 10:56Financial Performance - Net income attributable to Hyatt was 46 million[4]. - Net income for 2025 is projected between 150 million, a decline of 93% to 88% year-over-year[8]. - Net income attributable to Hyatt Hotels Corporation for Q1 2025 was 522 million in Q1 2024[23]. - Adjusted net income attributable to Hyatt Hotels Corporation was 81 million in Q1 2024[41]. - Hyatt's net income attributable to the company for the three months ended March 31, 2025, was 522 million in 2024[36]. Revenue and Fees - Gross fees totaled 1,718 million, slightly up from 1,080 million and 273 million, a 5.4% increase, or 24.4% after adjusting for assets sold in 2024[4]. - Adjusted EBITDA for Q1 2025 was 259 million in Q1 2024[38]. - Adjusted EBITDA for the three months ended March 31, 2025, was 259 million in the same period of 2024, indicating a year-over-year increase[36]. Cash Flow and Liquidity - Adjusted Free Cash Flow for 2025 is expected to be between 500 million, a decrease of 17% to 7% compared to 2024[8]. - Total liquidity as of March 31, 2025, was 1.8 billion in cash and cash equivalents[6]. - Free cash flow for 2025 is expected to be between 340 million, with adjusted free cash flow projected between 500 million[56]. - Adjusted Free Cash Flow is considered a useful liquidity measure, representing net cash from operating activities less capital expenditures[75]. Hotel Performance Metrics - Comparable system-wide hotels RevPAR increased by 5.7% compared to Q1 2024[4]. - RevPAR for system-wide hotels increased by 5.7% to 189.43 in Q1 2025[24]. - For the three months ended March 31, 2025, the Composite Luxury RevPAR increased to 305.23, a 4.5% increase from 2024, with an occupancy rate of 83.1%, up 4.9 percentage points[27]. - The occupancy rate for the Composite Upscale & Upper Midscale segment was 67.2%, reflecting a 1.6 percentage point increase compared to the previous year[27]. Operational Highlights - The pipeline of executed management or franchise contracts stands at approximately 138,000 rooms[4]. - The company operates over 1,450 hotels and all-inclusive properties across 79 countries as of March 31, 2025[20]. - The total number of properties managed by Hyatt as of March 31, 2025, is 682, with a total of 211,737 rooms, while franchised properties account for 747 properties and 135,415 rooms[30]. - Hyatt's total properties in the United States include 726 properties with 167,036 rooms, representing the largest share of its portfolio[30]. - The total number of system-wide all-inclusive resorts is 148, with 55,422 rooms, highlighting Hyatt's expansion in this segment[30]. Costs and Expenses - General and administrative expenses decreased to 169 million in Q1 2024[23]. - Transaction and integration costs rose to 8 million in Q1 2024[23]. - G&A expenses decreased to 169 million in Q1 2024, with adjusted G&A expenses at 118 million[40]. - Asset impairments in Q1 2025 amounted to 17 million in Q1 2024[41]. Strategic Initiatives - The company plans to continue its market expansion and acquisitions, including the planned Playa Hotels Acquisition, which is not included in the 2025 outlook[53]. - The company recognized 150 million, with potential additional contingent consideration of up to $185 million based on future milestones[82]. - The company entered into a joint venture for the Bahia Principe brand, consolidating its operating results in financial statements[71]. Performance Measurement - Adjusted EBITDA is a key performance measure for the company, assisting in consistent performance comparison across reporting periods[59]. - Adjusted Net Income (Loss) and Adjusted Diluted EPS are defined as net income excluding special items, providing a clearer view of ongoing operations[66]. - Average Daily Rate (ADR) is a critical performance measure, reflecting the average room price attained by hotels[69]. - Net Package RevPAR is used to evaluate hotel performance and is calculated as the product of Net Package ADR and average daily occupancy percentage[77]. - Comparable system-wide metrics are used to assess properties managed, franchised, or serviced, excluding those with substantial damage or renovations[73]. - The company utilizes Constant Dollar Currency analysis to remove the effects of foreign currency fluctuations from operating results[74].