CHICAGO – Hyatt Hotels Corporation (NYSE: NYSE:) reported first-quarter 2024 financial results, reporting a profit shortfall that caused its stock price to drop 3.1%.
The hotel company reported adjusted earnings per share of $0.71, $0.06 below analysts’ consensus estimates. Despite this, the company’s hotels’ comparable system-wide RevPAR grew 5.5% compared to the prior year’s first quarter.
The hotelier’s net income was $522 million and adjusted net income was $75 million. Diluted earnings per share were $4.93 and adjusted diluted earnings per share were $0.71.
Adjusted EBITDA for the quarter was $252 million, down 5.9% from the $268 million reported in the same quarter last year. The decline was due to several factors, including higher wages, property taxes and transaction costs associated with continued asset sales.
Hyatt President and CEO Mark S. Hoplamazian commented on the quarter’s results, saying, “The year started off strong, with gross fee income reaching a record $262 million for the quarter.” He highlighted the company’s achievements, including a 10% year-over-year increase in room count to 129,000 rooms and a 22% increase in World of Hyatt membership.
Looking ahead, Hyatt’s full-year outlook projects hotel system-wide RevPAR to increase 3% to 5% in constant currency compared to the full year 2023.
The company expects net room growth to be between 5.5% and 6.0%. For the full year, net income guidance ranges from $1.135 million to $1.195 million, while adjusted EBITDA is expected to range from $1.150 million to $1.190 million.
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This guidance is consistent with the company’s previously reported 2024 guidance, adjusted for a $30 million decline in adjusted EBITDA due to recent transactions.
Despite the stock decline, Hyatt management remains optimistic about the company’s growth trajectory and its asset lightening strategy, as evidenced by significant progress in asset disposals.
Hyatt’s balance sheet as of March 31, 2024 showed total debt of $3,055 million, with its proportionate share of unconsolidated hotel venture debt of $457 million.
During the first quarter, Hyatt repurchased approximately 2.5 million shares of Class A and Class B common stock for a total purchase price of $388 million. The company’s board of directors also authorized the repurchase of up to $1 billion of the company’s common stock.
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