HYATT REPORTS FIRST QUARTER 2023 RESULTS
Total Fee Revenue Increased 50%; Full Year RevPAR Outlook Raised |
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HYATT REPORTS FIRST QUARTER 2023 RESULTS
Total Fee Revenue Increased 50%; Full Year RevPAR Outlook Raised |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2023-05-05
Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE: H) today reported first quarter 2023 financial results.
Highlights include:
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Net income was $58 million in the first quarter of 2023 compared to net loss of $73 million in the first quarter of 2022. Adjusted net income was $45 million in the first quarter of 2023 compared to Adjusted net loss of $36 million in the first quarter of 2022.
- Diluted EPS was $0.53 in the first quarter of 2023 compared to $(0.67) in the first quarter of 2022. Adjusted Diluted EPS was $0.41 in the first quarter of 2023 compared to $(0.33) in the first quarter of 2022.
- Adjusted EBITDA was $268 million in the first quarter of 2023 compared to $169 million in the first quarter of 2022.
- Adjusted EBITDA does not include Net Deferrals of $31 million and Net Financed Contracts of $17 million in the first quarter of 2023, and Net Deferrals of $24 million and Net Financed Contracts of $7 million, in the first quarter of 2022.
- Comparable system-wide RevPAR increased 42.9% in the first quarter of 2023 compared to 2022.
- Comparable owned and leased hotels RevPAR increased 52.9% in the first quarter of 2023 compared to 2022. Comparable owned and leased hotels operating margin improved to 25.9% in the first quarter of 2023.
- Comparable All-inclusive Net Package RevPAR increased 33.2% in the first quarter of 2023 compared to 2022.
- Net Rooms Growth was approximately 7.0% in the first quarter of 2023.
- Pipeline of executed management or franchise contracts was approximately 117,000 rooms.
- Share repurchase activity was approximately 1.02 million shares repurchased for $106 million in the first quarter of 2023.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "For the fourth consecutive quarter we posted record results that exceeded our expectations, demonstrating our unique positioning and differentiated model. We raised our full year RevPAR outlook while maintaining our record level pipeline and industry leading net rooms growth. During the quarter, the recovery in Asia Pacific was particularly remarkable with broad improvements across the region. We continue to experience favorable booking trends and our outlook remains optimistic."
Operational Update
In the first quarter of 2023, comparable system-wide RevPAR was up 43% compared to the first quarter of 2022, or up 6% compared to the first quarter of 2019 for the same set of comparable properties. In the first quarter of 2023, the RevPAR recovery continued to be powered by average rate growth, up 12% on a constant currency basis, while occupancy improved 1,400 basis points, as compared to the same period in 2022.
A record level of total management, franchise, license, and other fees of $231 million were generated in the first quarter of 2023, up 50% compared to the first quarter of 2022.
The ALG all-inclusive portfolio also experienced strong growth. Comparable Net package RevPAR for ALG properties increased 30% in the Americas and increased 36% in Europe in the first quarter of 2023, compared to the same period in 2022.
World of Hyatt member contribution accounted for 21% of room nights at ALG properties in the Americas during the quarter.
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