HYATT TO DELAY ISSUANCE OF FOURTH QUARTER AND FULL YEAR 2023 EARNINGS RELEASE AND INVESTOR CONFERENCE CALL
Announces Fourth Quarter and Full Year 2023 Highlights Declares Quarterly Cash Dividend. |
|
HYATT TO DELAY ISSUANCE OF FOURTH QUARTER AND FULL YEAR 2023 EARNINGS RELEASE AND INVESTOR CONFERENCE CALL
Announces Fourth Quarter and Full Year 2023 Highlights Declares Quarterly Cash Dividend. |
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2024-02-16
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.
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 theTimeless Collection, includingPark Hyatt,Grand Hyatt,Hyatt Regency,Hyatt,Hyatt Vacation Club,Hyatt Place,Hyatt House,Hyatt Studios, andUrCove; theBoundless Collection, includingMiraval,Alila,Andaz,Thompson Hotels,Dream Hotels,Hyatt Centric, andCaption by Hyatt; theIndependent Collection, includingThe Unbound Collection by Hyatt,Destination by Hyatt, andJdV by Hyatt; and theInclusive Collection, includingImpression 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, andSunscape 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.
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.
|
|
