CHICAGO - Hyatt Hotels Corporation (NYSE: NYSE:H) released its first quarter 2024 financial results, revealing an earnings miss that led to a 3.1% decline in its stock price.
The hospitality company reported an adjusted EPS of $0.71, falling short of the analyst consensus by $0.06. Despite this, the company's comparable system-wide hotels RevPAR increased by 5.5% compared to the first quarter of the previous year.
The hotelier's net income stood at $522 million, with adjusted net income at $75 million. Diluted EPS was recorded at $4.93, while adjusted diluted EPS came in at $0.71.
Adjusted EBITDA for the quarter was $252 million, a 5.9% decrease from the $268 million reported in the same quarter last year. This decline was attributed to several factors, including higher wages, real estate taxes, and transaction costs related to ongoing asset sales.
Hyatt's President and CEO, Mark S. Hoplamazian, commented on the quarter's performance, stating, "The year is off to a great start with gross fee revenue reaching a record of $262 million in the quarter." He highlighted the company's achievements, including a 10% year-over-year expansion of its pipeline to 129,000 rooms and a 22% growth in World of Hyatt membership.
Looking ahead, Hyatt's full-year guidance projects system-wide hotels RevPAR to increase by 3% to 5% on a constant currency basis compared to the full year 2023.
The company anticipates net rooms growth to be between 5.5% to 6.0%. The forecast for full-year net income ranges from $1,135 million to $1,195 million, while adjusted EBITDA is expected to be between $1,150 million and $1,190 million.
This guidance aligns with the company's previously provided outlook for 2024, adjusted for a $30 million reduction in adjusted EBITDA due to recent transactions.
Despite the stock's decline, Hyatt's management remains optimistic about the company's trajectory and its asset-light strategy, as evidenced by the significant progress in asset dispositions.
Hyatt's balance sheet, as of March 31, 2024, showed a total debt of $3,055 million, with a pro-rata share of unconsolidated hospitality 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 an aggregate purchase price of $388 million. The company's board of directors has also authorized the repurchase of up to an additional $1 billion of the company's common stock.
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