Announces Fourth Quarter and Full Year 2023
Highlights
Declares Quarterly Cash Dividend
Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H)
today announced that it will delay the issuance of its fourth
quarter and full year 2023 earnings release and investor conference
call previously scheduled for February 15, 2024, as additional time
is required to finalize accounting related to Unlimited Vacation
Club deferred cost activity in its Apple Leisure Group segment,
which has no cash impact. The Company will issue a separate press
release when a rescheduled date and time has been determined.
The Company also announced the following fourth quarter and full
year 2023 highlights:
- Comparable system-wide RevPAR increased 9.1% in the
fourth quarter and 17.0% for the full year of 2023, compared to the
same periods in 2022, and exceeded full year outlook for 2023.
- Comparable owned and leased hotels RevPAR increased 5.9%
in the fourth quarter and 15.5% for the full year of 2023, compared
to the same periods in 2022. Comparable owned and leased hotels
operating margin was 26.2% in the fourth quarter and 25.4% for the
full year of 2023.
- Comparable Net Package RevPAR increased 11.3% in the
fourth quarter and 15.3% for the full year of 2023 compared to the
same periods in 2022.
- Management, Franchise, License, and other fees were $256
million in the fourth quarter and $985 million for the full year of
2023.
- Cash Flow from Operations was $800 million for the full
year of 2023, the highest in the Company’s history.
- Free Cash Flow was $602 million for the full year of
2023, the highest in the Company’s history.
- Net Rooms Growth was 5.9% for the full year of 2023, in
line with full year outlook for 2023.
- Pipeline of executed management or franchise contracts
was approximately 127,000 rooms.
- Share Repurchases were approximately 890 thousand Class
A shares for $95 million in the fourth quarter and approximately
4.1 million Class A shares for $453 million for the full year of
2023.
- Capital Returns to Shareholders were $500 million for
the full year of 2023, inclusive of dividends and share
repurchases, in line with the full year outlook for 2023.
First Quarter 2024 Dividend
Announcement
The Company's board of directors has declared a cash dividend of
$0.15 per share for the first quarter of 2024. The dividend is
payable on March 12, 2024 to Class A and Class B stockholders of
record as of February 28, 2024.
Forward-Looking
Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements include statements about our plans, strategies, outlook,
the timing and payment of dividends, prospects or future events and
which involve known and unknown risks that are difficult to
predict. As a result, our actual results, performance or
achievements may differ materially from those expressed or implied
by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as
"may," "could," "expect," "intend," "plan," "seek," "anticipate,"
"believe," "estimate," "predict," "potential," "continue,"
"likely," "will," "would" and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by us
and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: general economic uncertainty in
key global markets and a worsening of global economic conditions or
low levels of economic growth; the rate and pace of economic
recovery following economic downturns; global supply chain
constraints and interruptions, rising costs of construction-related
labor and materials, and increases in costs due to inflation or
other factors that may not be fully offset by increases in revenues
in our business; risks affecting the luxury, resort, and
all-inclusive lodging segments; levels of spending in business,
leisure, and group segments, as well as consumer confidence;
declines in occupancy and average daily rate; limited visibility
with respect to future bookings; loss of key personnel; domestic
and international political and geopolitical conditions, including
political or civil unrest or changes in trade policy; hostilities,
or fear of hostilities, including future terrorist attacks, that
affect travel; travel-related accidents; natural or man-made
disasters, weather and climate-related events, such as earthquakes,
tsunamis, tornadoes, hurricanes, droughts, floods, wildfires, oil
spills, nuclear incidents, and global outbreaks of pandemics or
contagious diseases, or fear of such outbreaks; our ability to
successfully achieve certain levels of operating profits at hotels
that have performance tests or guarantees in favor of our
third-party owners; the impact of hotel renovations and
redevelopments; risks associated with our capital allocation plans,
share repurchase program, and dividend payments, including a
reduction in, or elimination or suspension of, repurchase activity
or dividend payments; the seasonal and cyclical nature of the real
estate and hospitality businesses; changes in distribution
arrangements, such as through internet travel intermediaries;
changes in the tastes and preferences of our customers;
relationships with colleagues and labor unions and changes in labor
laws; the financial condition of, and our relationships with,
third-party owners, franchisees, and hospitality venture partners;
the possible inability of third-party owners, franchisees, or
development partners to access the capital necessary to fund
current operations or implement our plans for growth; risks
associated with potential acquisitions and dispositions and our
ability to successfully integrate completed acquisitions with
existing operations; failure to successfully complete proposed
transactions (including the failure to satisfy closing conditions
or obtain required approvals); our ability to successfully execute
our strategy to expand our management and franchising business
while at the same time reducing our real estate asset base within
targeted timeframes and at expected values; our ability to maintain
effective internal control over financial reporting and disclosure
controls and procedures; declines in the value of our real estate
assets; unforeseen terminations of our management or franchise
agreements; changes in federal, state, local, or foreign tax law;
increases in interest rates, wages, and other operating costs;
foreign exchange rate fluctuations or currency restructurings;
risks associated with the introduction of new brand concepts,
including lack of acceptance of new brands or innovation; general
volatility of the capital markets and our ability to access such
markets; changes in the competitive environment in our industry,
industry consolidation, and the markets where we operate; our
ability to successfully grow the World of Hyatt loyalty program and
Unlimited Vacation Club paid membership program; cyber incidents
and information technology failures; outcomes of legal or
administrative proceedings; and violations of regulations or laws
related to our franchising business and licensing businesses and
our international operations; and other risks discussed in the
Company's filings with the SEC, including our annual reports on
Form 10-K and quarterly reports on Form 10-Q, which filings are
available from the SEC. All forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in
their entirety by the cautionary statements set forth above. We
caution you not to place undue reliance on any forward-looking
statements, which are made only as of the date of this press
release. We do not undertake or assume any obligation to update
publicly any of these forward-looking statements to reflect actual
results, new information or future events, changes in assumptions
or changes in other factors affecting forward-looking statements,
except to the extent required by applicable law. If we update one
or more forward-looking statements, no inference should be drawn
that we will make additional updates with respect to those or other
forward-looking statements.
About Hyatt Hotels
Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading
global hospitality company guided by its purpose – to care for
people so they can be their best. As of December 31, 2023, the
Company's portfolio included more than 1,300 hotels and
all-inclusive properties in 77 countries across six continents. The
Company's offering includes brands in the Timeless Collection,
including Park Hyatt®, Grand Hyatt®, Hyatt
Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt
Place®, Hyatt House®, Hyatt Studios, and
UrCove; the Boundless Collection, including Miraval®,
Alila®, Andaz®, Thompson Hotels®, Dream®
Hotels, Hyatt Centric®, and Caption by Hyatt®;
the Independent Collection, including The Unbound Collection by
Hyatt®, Destination by Hyatt®, and JdV by Hyatt®;
and the Inclusive Collection, including Impression by
Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry®
Wellness & Spa Resorts, Secrets® Resorts & Spas,
Breathless Resorts & Spas®, Dreams® Resorts &
Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels
& Resorts®, and Sunscape® Resorts & Spas.
Subsidiaries of the Company operate the World of Hyatt® loyalty
program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation
Club®, Amstar DMC destination management services, and Trisept
Solutions® technology services. For more information, please visit
www.hyatt.com.
Tag: HHC-FIN
Reconciliation of Non-GAAP Financial
Measure: Reconciliation of Net cash provided by operating
activities to Free Cash Flow
(in millions)
Year Ended December
31,
2023
Net cash provided by operating
activities
$
800
Capital expenditures
(198
)
Free cash flow
$
602
Definitions
Free Cash Flow
Free cash flow represents net cash provided by operating
activities less capital expenditures. We believe free cash flow to
be a useful liquidity measure to us and investors to evaluate the
ability of our operations to generate cash for uses other than
capital expenditures and, after debt service and other obligations,
our ability to grow our business through acquisitions and
investments, as well as our ability to return cash to shareholders
through dividends and share repurchases. Free cash flow is not
necessarily a representation of how we will use excess cash. Free
cash flow is not a substitute for net cash provided by operating
activities or any other measure prescribed by GAAP. There are
limitations to using non-GAAP measures such as free cash flow and
management compensates for these limitations by referencing our
GAAP results and using free cash flow supplementally. See our
consolidated statements of cash flows in our consolidated financial
statements included in our Annual Report on Form 10-K to be filed
with the SEC in February 2024.
Net Package RevPAR
Net Package RevPAR is the product of the Net Package ADR and the
average daily occupancy percentage. Net Package RevPAR generally
includes revenue derived from the sale of package revenue comprised
of rooms revenue, food and beverage, and entertainment, net of
compulsory tips paid to employees. Our management uses Net Package
RevPAR to identify trend information with respect to room revenues
from comparable properties and to evaluate hotel performance on a
regional and segment basis. Net Package RevPAR is a commonly used
performance measure in our industry.
Revenue per Available Room
(RevPAR)
RevPAR is the product of the average daily rate and the average
daily occupancy percentage. RevPAR does not include non-room
revenues, which consist of ancillary revenues generated by a hotel
property, such as food and beverage, parking, and other guest
service revenues. Our management uses RevPAR to identify trend
information with respect to room revenues from comparable
properties and to evaluate hotel performance on a regional and
segment basis. RevPAR is a commonly used performance measure in our
industry.
RevPAR changes that are driven predominantly by changes in
occupancy have different implications for overall revenue levels
and incremental profitability than do changes that are driven
predominantly by changes in average room rates. For example,
increases in occupancy at a hotel would lead to increases in room
revenues and additional variable operating costs, including
housekeeping services, utilities, and room amenity costs, and could
also result in increased ancillary revenues, including food and
beverage. In contrast, changes in average room rates typically have
a greater impact on margins and profitability as average room rate
changes result in minimal impacts to variable operating costs.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214730546/en/
Investor Contact Adam
Rohman, 312.780.5834, adam.rohman@hyatt.com Media Contact Franziska Weber, 312.780.6106,
franziska.weber@hyatt.com
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