Why Is Hyatt Hotels (H) Up 13.2% Since Last Earnings Report?

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]