HYATT REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Hyatt Hotels Corporation ("Hyatt," "the Company," "we," "us," or "our") (NYSE: H) today reported fourth quarter and full year 2024 results. |
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HYATT REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Hyatt Hotels Corporation ("Hyatt," "the Company," "we," "us," or "our") (NYSE: H) today reported fourth quarter and full year 2024 results. |
Catégorie : Monde - Économie du secteur
- Chiffres et études
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Highlights include:
- Comparable system-wide hotels RevPAR growth was 5.0% in the fourth quarter and 4.6% for the full year of 2024, compared to the same periods in 2023
- Comparable system-wide all-inclusive resorts Net Package RevPAR growth was 2.9% in the fourth quarter and 4.4% for the full year of 2024
- Net rooms growth was 7.8% for the full year of 2024, in line with the full year outlook for 2024
- Net income (loss) was $(56) million in the fourth quarter and $1,296 million for the full year of 2024. Adjusted net income was $40 million in the fourth quarter and $375 million for the full year of 2024
- Diluted EPS was $(0.58) in the fourth quarter and $12.65 for the full year of 2024. Adjusted Diluted EPS was $0.42 in the fourth quarter and $3.66 for the full year of 2024
- Adjusted EBITDA was $255 million in the fourth quarter and $1,096 million for the full year of 2024
- Pipeline of executed management or franchise contracts was approximately 138,000 rooms
- Repurchased approximately 8 million shares of Class A and Class B common stock for an aggregate purchase price of $1,190 million for the full year of 2024, returning $1,250 million to shareholders through dividends and share repurchases
- 2025 full year comparable system-wide hotels RevPAR growth is projected to increase 2.0% to 4.0% on a constant currency basis, compared to the full year of 2024
- 2025 full year net rooms growth is projected to be 6.0% to 7.0%, compared to the full year of 2024
- 2025 full year net income is projected between $190 million and $240 million
- 2025 full year Adjusted EBITDA is projected between $1,100 million and $1,150 million
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt, said, "The purposeful evolution of our business model and strong brand focus has accelerated our network effect benefiting each of our stakeholders. Our fourth quarter results demonstrate the strength of our commercial offerings, as evidenced by the growth of the World of Hyatt loyalty program, which reached approximately 54 million members. Our operating results and industry leading net rooms growth allowed us to achieve record levels of gross fees while returning over $1.2 billion to shareholders in 2024."
Fourth Quarter Results and Highlights
| (in millions) |
|
Three Months Ended
December 31, |
|
|
|
|
2024 |
|
2023 |
|
Change (%) |
| Management and franchising |
|
$ 219 |
|
$ 205 |
|
7.2 % |
| Owned and leased |
|
57 |
|
90 |
|
(36.5) % |
| Distribution |
|
20 |
|
6 |
|
199.6 % |
| Overhead |
|
(41) |
|
(52) |
|
21.8 % |
| Eliminations |
|
— |
|
— |
|
(51.4) % |
| Adjusted EBITDA |
|
$ 255 |
|
$ 249 |
|
2.4 % |
Adjusted EBITDA increased 20.3% in the fourth quarter of 2024, compared to the same period in 2023, when adjusted for the net impact of asset sales.
- Management and franchising: Results reflected strong business and leisure transient travel while group demand during the fourth quarter was impacted by the shift of the Jewish holidays and the U.S. election in November. In the United States, performance was driven by the continued recovery in business transient travel. Greater China hotels RevPAR growth was flat to last year, a significant improvement from third quarter 2024 results as business transient travel benefited Mainland China hotels. International inbound travel continues to be a driver of growth in Asia Pacific excluding Greater China.
- Owned and leased: Adjusted EBITDA increased 5.1% in the fourth quarter, compared to the same period in 2023, when adjusted for the net impact of transactions. Comparable owned and leased margin increased to 20.5%, up 70 bps, in the fourth quarter driven by strong rates compared to the same period in 2023.
- Distribution: Results for the fourth quarter were impacted by Hurricane Milton and lower booking volumes, partially offset by lower overhead costs. Excluding the impact of the UVC Transaction, Adjusted EBITDA decreased $4 million.
Openings and Development
In the fourth quarter, 81 new hotels (or 20,721 rooms) joined Hyatt's portfolio, inclusive of properties acquired through the Standard International and Bahia Principe transactions. Notable openings included Grand Hyatt Deer Valley, Dreams Madeira Resort Spa & Marina, Park Hyatt London River Thames, Thompson Palm Springs, and nine UrCove properties.
As of December 31, 2024, the Company had a pipeline of executed management or franchise contracts for approximately 720 hotels (or approximately 138,000 rooms), representing pipeline expansion of approximately 9% year over year.
Transactions and Capital Strategy
During the fourth quarter of 2024, the Company:
- Acquired Standard International, as previously announced, on October 1, 2024 for approximately $150 million and up to an additional $185 million of contingent consideration.
- Closed the Bahia Principe Transaction on December 27, 2024 for €359 million (approximately $374 million). Additional deferred consideration of €60 million is payable at future dates.
- Completed the asset acquisition of three Alua properties on November 15, 2024 for €117 million (approximately $123 million) and assumed $53 million of long-term debt as part of the transaction. The Company intends to sell these assets and has begun the marketing process.
- Sold Hyatt Regency O'Hare Chicago for gross proceeds of $40 million on December 10, 2024 to an unrelated third party and entered into a long-term franchise agreement. The Company provided $20 million of seller financing and committed to loan up to $45 million for a future renovation.
- Sold its ownership interests in two unconsolidated hospitality ventures, Park Hyatt Los Cabos at Cabo Del Sol hotel and residences on December 13, 2024 and Hyatt Centric Downtown Nashville on December 17, 2024, and retained long-term management agreements.
On February 10, 2025, the Company announced it entered into an agreement to acquire all outstanding shares of Playa Hotels & Resorts N.V. ("Playa") for $13.50 per share, or approximately $2.6 billion, inclusive of approximately $900 million of debt, net of cash ("Playa Transaction"). At closing, the Company expects to announce a new commitment to realize at least $2.0 billion of proceeds from asset sales by the end of 2027. This commitment may include existing assets owned by Hyatt and properties owned by Playa. The Company expects its asset-light earnings mix to exceed 90% on a pro forma basis in 2027. At closing, the Company expects to fund 100% of the acquisition with new debt financing, and, following the close of the transaction, the Company expects to pay down over 80% of that financing with anticipated proceeds from the aforementioned asset sales.
Balance Sheet and Liquidity
As of December 31, 2024, the Company reported the following:
- Total debt of $3,782 million.
- Pro rata share of unconsolidated hospitality venture debt of $370 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
- Total liquidity of approximately $2.9 billion with $1,383 million of cash and cash equivalents and short-term investments, and borrowing availability of $1,497 million under Hyatt's revolving credit facility, net of letters of credit outstanding.
On November 20, 2024, the Company issued and sold $150 million of senior notes due 2029 at an issue price of 99.693%, forming a single series of an aggregate $600 million of 5.250% senior notes due 2029, of which $450 million principal amount was issued on June 17, 2024, and $450 million of 5.375% senior notes due 2031 at an issue price of 99.745%. In the fourth quarter, the Company received approximately $594 million of net proceeds, after deducting underwriting discounts and other offering expenses, and intends to use the net proceeds from the offering to repay all of the 5.375% senior notes due 2025 at or prior to their maturity on April 23, 2025.
The Company repurchased a total of 69,194 shares of Class A common stock for approximately $11 million in the fourth quarter and repurchased a total of 4,362,776 shares of Class A and 3,629,480 shares of Class B common stock for approximately $1,190 million for the full year of 2024. The Company ended the fourth quarter with 42,613,090 Class A and 53,531,579 Class B shares issued and outstanding. During the full year of 2024, the Company returned $1,250 million to shareholders, inclusive of dividends and share repurchases. As of December 31, 2024, the Company has approximately $971 million remaining under its share repurchase authorization.
The Company's board of directors has declared a cash dividend of $0.15 per share for the first quarter of 2025. The dividend is payable on March 12, 2025 to Class A and Class B stockholders of record as of February 28, 2025.
2025 Outlook
The Company is providing the following outlook for the 2025 fiscal year. Refer to slide 13 in the fourth quarter and full year 2024 investor presentation for Adjusted EBITDA outlook growth, adjusted for asset sales. The Company is not providing an outlook for capital returns to shareholders at this time due to the pending Playa Transaction.
|
|
Full Year 2025 vs. 2024 |
| System-Wide Hotels RevPAR1 Growth |
|
2.0% to 4.0% |
| Net Rooms Growth |
|
6.0% to 7.0% |
| (in millions) |
|
Full Year 2025 |
| Net Income |
|
$190 - $240 |
| Gross Fees |
|
$1,200 - $1,230 |
| Adjusted G&A Expenses2, 3 |
|
$450 - $460 |
| Adjusted EBITDA2 |
|
$1,100 - $1,150 |
| Capital Expenditures |
|
Approx. $150 |
| Adjusted Free Cash Flow2 |
|
$450 - $500 |
1 RevPAR is based on constant currency whereby previous periods are translated based on the current period exchange rate. System-wide hotels RevPAR growth percentage for 2025 vs. 2024 is based on comparable hotels.
2 Refer to the tables on schedule A-11 for a reconciliation of estimated net income attributable to Hyatt Hotels Corporation to Adjusted EBITDA, G&A expenses to Adjusted G&A Expenses, and net cash provided by operating activities to Free Cash Flow and Adjusted Free Cash Flow.
3 During the year ended December 31, 2024, the Company revised its definition of Adjusted EBITDA to exclude transaction and integration costs and recast prior-period results to provide comparability. Refer to page A-6 of the schedules for additional detail.
No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2025 Outlook. The Company's 2025 Outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that Hyatt will achieve these results.
Conference Call Information
The Company will hold an investor conference call this morning, February 13, 2025, at 9:00 a.m. CT.
Participants may listen to a simultaneous webcast of the conference call, which may be accessed through the Company's website at investors.hyatt.com. Alternatively, participants may access the live call by dialing: 800.715.9871 (U.S. Toll-Free) or 646.307.1963 (International Toll Number) using conference ID# 2303828 approximately 15 minutes prior to the scheduled start time.
A replay of the call will be available Thursday, February 13, 2025 at 12:00 p.m. CT until Wednesday, February 19, 2025 at 10:59 p.m. CT by dialing: 800.770.2030 (U.S. Toll-Free) or 647.362.9199 (International Toll Number) using conference ID# 2303828. An archive of the webcast will be available on the Company's website for 90 days.
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