Hyatt Achieves Record 2023 Results With Strong Net Income

Hyatt performance 2023
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HYATT HOTELS REPORTS RECORD Q4 2023 RESULTS WITH STRONG NET INCOME AND REVPAR GROWTH. STRATEGIC EXPANSION AND CAPITAL STRATEGY DRIVE POSITIVE OUTLOOK FOR 2024.

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Hyatt Hotels Corporation (NYSE: H) has reported robust financial results for Q4 and full-year 2023. Key highlights include:

Hyatt’s Solid Financial Results 2023 Q4

  • Net income reached $26 million in Q4 and $220 million for 2023, surpassing full-year expectations.
  • Adjusted net income stood at $68 million in Q4 and $276 million for the full year.
  • Diluted EPS for Q4 was $0.25 and $2.05 for 2023. Adjusted Diluted EPS was $0.64 in Q4 and $2.56 for the full year.
  • Adjusted EBITDA exceeded the full-year outlook at $1,029 million.

Strong Revenue Growth

  • System-wide RevPAR increased by 17.0% in 2023.
  • Comparable system-wide RevPAR rose by 9.1% in Q4 and 17.0% for the full year.
  • Net Rooms Growth aligned with the full-year outlook at 5.9%.

Operational Highlights

  • Management, franchise, license, and other fees reached a record $256 million in Q4.
  • Hyatt achieved an asset-light earnings mix of approximately 76% for the full year.
  • Returned $500 million to shareholders, including dividends and share repurchases.

Transformative Year, Says CEO

Mark S. Hoplamazian, President and CEO of Hyatt expressed his thoughts on the brand’s performance in 2023. He stated, “The fourth quarter marks the completion of a transformative year, demonstrating progress towards our strategic vision and earnings evolution. RevPAR growth exceeded guidance, and industry-leading net rooms growth led to a record level of fees.”

Operational Update

  • Comparable system-wide RevPAR increased by 9.1% in Q4 and 17.0% for the full year, driven by strong global travel demand.
  • Group booking pace for Americas full-service managed properties is up 8% for the full year 2024 compared to 2023.

Segment Results

  • Owned and leased hotels segment reported a 3.0% increase in Q4, contributing to an expanded operating margin.
  • Americas management and franchising segment saw a 7.6% increase in Q4, driven by improved group and business transient results.
  • ASPAC management and franchising segment experienced a 76.9% surge in Q4, with Greater China leading the growth.

Hyatt’s Growth and Expansion

Here is Hyatt’s 2023 performance in terms of expansion and growth:

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  • In Q4, 29 new hotels (9,648 rooms) joined Hyatt’s portfolio, including strategic conversions in Greater China.
  • For 2023, 101 new hotels (23,965 rooms) joined, with 43 hotels converting to a Hyatt brand.

Capital Strategy

  • Completed a transaction restructuring Unlimited Vacation Club business, selling 80% for $80 million.
  • Sold Hyatt Regency Aruba Resort Spa and Casino for $240 million.
  • Ongoing progress towards $2.0 billion in gross proceeds from real estate sales by end of 2024.

2024 Outlook

  • System-Wide RevPAR expected to grow 3% to 5%.
  • Net Rooms Growth projected at 5.5% to 6%.
  • Anticipated net income of approximately $560 million.

Conclusion

Hyatt’s robust financial results of 2023 underscore its successful execution of growth strategies, strong market demand, and a commitment to shareholder returns.

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