Hyatt Hotels Corporation Reports Strong Q2 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Hyatt Hotels Corporation Reports Strong Q2 2024 Financial Results
Hyatt Hotels Corporation ("Hyatt" or the "Company") (NYSE:H) today announced its financial results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Consensus Estimates | Performance vs. Estimates |
|---|---|---|---|
| Total Revenue | Not specified | $1.74B | N/A |
| Net Income | $359 million | N/A | N/A |
| Adjusted Net Income | $158 million | N/A | N/A |
| Diluted EPS | $3.46 | N/A | N/A |
| Adjusted Diluted EPS | $1.53 | $1.17 | Beat |
Hyatt demonstrated robust financial performance in Q2 2024, exceeding consensus estimates with an Adjusted Diluted EPS of $1.53 versus the expected $1.17, underscoring the strength and resilience of their asset-light operating model.
Segment Revenue Performance
| Segment | Q2 2024 Performance | Previous Guidance | Performance vs. Guidance |
|---|---|---|---|
| Management and Franchising | Strong performance in business transient and group travel, especially in the US and Europe. | No specific previous guidance provided. | Aligned well with expectations. |
| Owned and Leased | Adjusted EBITDA up 9% YoY when adjusted for net transactions. | No specific previous guidance provided. | Performed as anticipated. |
| Distribution | Adjusted EBITDA increased by $9M YoY, but excluding Unlimited Vacation Club, it decreased by $5M, consistent with prior expectations | Decrease in Adjusted EBITDA without Unlimited Vacation Club was expected. | Met prior guidance. |
Hyatt's segment performance remained steady, with notable strengths in business transient and group travel. The Owned and Leased segment marked a 9% increase in Adjusted EBITDA, and the Distribution segment followed expected trends.
Key Operational Data
| Metric | Q2 2024 |
|---|---|
| Comparable system-wide hotels RevPAR growth | 4.7% YoY |
| Comparable system-wide all-inclusive resorts Net Package RevPAR growth | 3.0% YoY |
| Net Rooms Growth | 4.6% |
| Pipeline of management or franchise contracts | 130,000 rooms |
Executive Commentary
Mark S. Hoplamazian, President and CEO of Hyatt, highlighted, "We posted solid second quarter results demonstrating our differentiated positioning and continued momentum. System-wide RevPAR grew by 4.7% and net rooms growth was 4.6%, generating record gross fee revenue of $275 million in the quarter."
Dividend and Share Repurchase Program
The company's board of directors declared a cash dividend of $0.15 per share for the third quarter of 2024, payable on September 10, 2024. Additionally, during Q2, Hyatt repurchased approximately 907,000 shares of Class A common stock for $134 million, with $1.6 billion remaining under the share repurchase authorization.
Forward Guidance
For the full year 2024, Hyatt projects: - Comparable system-wide hotels RevPAR growth of 3.0% to 4.0% - Net Income between $1,055 million and $1,115 million - Adjusted EBITDA between $1,135 million and $1,175 million - Capital returns to shareholders between $800 million and $850 million
Stock Price Movement
Following the earnings release, Hyatt's stock price experienced a slight increase of approximately 0.037%.
In summary, Hyatt Hotels Corporation achieved strong financial and operational results during Q2 2024, surpassing key performance indicators and positively adjusting its full-year outlook.
