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Hyatt Hotels Corp $220 Million Net Income In 2023

Hyatt Hotels Corporation Achieves Record $220 Million Net Income for Full Year 2023

Hyatt Hotels Corporation has reported its financial results for the fourth quarter and full year of 2023, showcasing impressive numbers that exceeded expectations.

In the fourth quarter, net income reached $26 million, with adjusted net income at $68 million. For the full year, net income stood at a record $220 million, surpassing the full-year outlook. Adjusted EBITDA was $241 million in Q4 and $1,029 million for the full year, exceeding the full-year outlook range.

The company’s sustainable growth was reflected in its comparable system-wide revenue per available room (RevPAR) increase of 9.1% in Q4 and 17.0% for the full year, compared to 2022, surpassing the full-year outlook. Net rooms growth for the full year was 5.9%, in line with expectations.

Mark S. Hoplamazian, President and CEO of Hyatt, commented, “The fourth quarter marks the completion of a transformative year and demonstrates the progress towards our strategic vision and earnings evolution. RevPAR growth exceeded the high end of our guidance range, and we had industry-leading net rooms growth for the seventh consecutive year.”

The company also reported a record level of fees and the highest free cash flow in its history. Share repurchases were approximately 890 thousand Class A shares for $95 million in Q4 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, in line with expectations.

Looking ahead to 2024, Hyatt expects a system-wide RevPAR increase of 3% to 5%, with net rooms growth of 5.5% to 6%. Management, franchise, license, and other fees are projected to be between $1,100 and $1,130 million, and adjusted EBITDA between $1,175 and $1,225 million. The company also plans to return $550 to $600 million to shareholders through a combination of cash dividends and share repurchases.

Hyatt’s operational update highlighted a record level of management, franchise, license, and other fees of $256 million generated in the fourth quarter of 2023, driven by continued strong global demand for travel and net rooms growth. Comparable system-wide RevPAR increase was driven by the rapid recovery in Greater China and strengthening group demand in the United States. Group booking pace for Americas full service managed properties is currently up 8% for full year 2024 compared to 2023.

The company also shared segment results and highlights, showing growth across various regions and segments. Owned and leased hotels segment results in the fourth quarter were driven by the recovery of group demand and increased rate growth across group and transient customers. Americas management and franchising segment results in the fourth quarter were driven by improved group and business transient results along with resilient leisure demand. ASPAC management and franchising segment results in the fourth quarter were driven by strength in all customer segments which contributed to RevPAR growth across the subregions, with Greater China improving 84% compared to the fourth quarter of 2022.

In the fourth quarter, 29 new hotels (or 9,648 rooms) joined Hyatt’s portfolio, including notable openings such as the 2,500 room Rio Hotel & Casino in Las Vegas, Nevada, and the 1,100 room Sunscape Coco Punta Cana and 900 room Sunscape Dominicus La Romana in the Dominican Republic. For the full year of 2023, 101 new hotels (or 23,965 rooms) joined Hyatt’s portfolio.

As of December 31, 2023, the Company had a pipeline of executed management or franchise contracts for approximately 650 hotels (approximately 127,000 rooms), inclusive of 17 Hyatt Studios hotels (approximately 2,000 rooms). During the fourth quarter, the first Hyatt Studios hotel broke ground in Mobile, Alabama.

Hyatt’s strong financial performance and strategic initiatives position the company for continued growth and success in the hospitality industry.