Hyatt Hotels Corp. reported its third quarter 2024 results.
Among the highlights:
Comparable systemwide revenue per available room increased 3 percent compared to the same period in 2023
Comparable systemwide all-inclusive resorts net package RevPAR decreased 0.9 percent compared to the same period in 2023
Net rooms growth was approximately 4.3 percent
Net income was $471 million and adjusted net income was $96 million
Adjusted earnings before interest, taxes, depreciation or amortization was $275 million
Pipeline of executed management or franchise contracts was approximately 135,000 rooms
Full-year comparable system-wide hotels RevPAR is projected to increase 3 percent to 4 percent on a constant-currency basis compared to full year 2023
Full-year net income is projected between $1.4 billion and $1.45 billion
Full-year adjusted EBITDA is projected between $1.1 billion and $1.12 billion
Openings and Development
In the third quarter, 16 new hotels (or 2,589 rooms) joined Hyatt's portfolio. Notable openings included Alila Shanghai; Brunfels Hotel, part of The Unbound Collection by Hyatt; Grand Hyatt Kunming; and Park Hyatt Marrakech. During the quarter, the company announced its exclusive alliance with Under Canvas with 13 outdoor resorts, including ULUM Moab.
As of Sept. 30, the company had a pipeline of executed management or franchise contracts for approximately 690 hotels (approximately 135,000 rooms).
Transactions and Capital Strategy
As a result of the previously announced sale of Hyatt Regency Orlando and an adjacent undeveloped land parcel on Aug. 16, the company exceeded its $2 billion asset-disposition commitment announced in August 2021. The company has realized $2.6 billion of gross proceeds, net of acquisitions, at a 13.3x multiple over the three-year period and expects to exceed 80 percent asset-light earnings mix in 2025.
Additionally, as previously announced, the company closed on the acquisition of Standard International on Oct. 1 for approximately $150 million with up to an additional $185 million of contingent consideration.
Earlier this week, the company announced plans to enter into a long-term, asset-light joint venture with Grupo Piñero, investing €359 million at closing for 50 percent of the joint venture plus an additional €60 million when certain conditions are met. This transaction is expected to close in the coming months subject to customary closing conditions, and upon closing, will add 23 all-inclusive resorts (or approximately 12,000 rooms) to Hyatt's managed portfolio.
Looking Ahead
