CHICAGO - Hyatt Hotels Corporation (NYSE: NYSE:H) today announced financial results for the fourth quarter, surpassing analyst expectations with an adjusted earnings per share (EPS) of $0.64, which was $0.27 higher than the consensus estimate of $0.37.
The company's revenue for the quarter also exceeded expectations, coming in at $1.66 billion compared to the anticipated $1.61 billion. Despite the earnings beat, Hyatt's stock experienced a modest premarket decline of 0.41%.
Hyatt's fourth quarter marked a strong finish to the year, with net income reaching $26 million and $220 million for the full year of 2023. The adjusted net income stood at $68 million for the quarter, contributing to a full-year total of $276 million. The company's adjusted EBITDA for the fourth quarter was $241 million, culminating in $1,029 million for the year, both surpassing the full year outlook.
The hotel giant also reported a 9.1% increase in comparable system-wide revenue per available room (RevPAR) for the quarter and a 17% rise for the full year compared to the same periods in 2022. These figures exceeded the company's full-year guidance. The growth in RevPAR was attributed to a rapid recovery in Greater China and strengthening group demand in the United States.
Hyatt's President and CEO, Mark S. Hoplamazian, highlighted the quarter as the culmination of a transformative year, noting the RevPAR growth exceeded the high end of their guidance range and industry-leading net rooms growth for the seventh consecutive year. He emphasized the record level of fees and the highest free cash flow in Hyatt's history, as well as the return of $500 million to shareholders, demonstrating the successful execution of their strategy.
The company also provided an outlook for the 2024 fiscal year, expecting system-wide RevPAR to increase by 3% to 5%, net rooms growth of 5.5% to 6%, and an approximate net income of $560 million. Management, franchise, license, and other fees are projected to be between $1,100 million and $1,130 million, with adjusted EBITDA anticipated to be between $1,175 million and $1,225 million. These projections are part of Hyatt's strategy to expand its management and hotels services while reducing its real estate asset base.
In terms of development, Hyatt saw 29 new hotels join its portfolio in the fourth quarter, including notable openings in Las Vegas, Nevada, the Dominican Republic, Japan, and India. By the end of 2023, the company's pipeline consisted of approximately 650 hotels (about 127,000 rooms), signaling continued growth.
Hyatt's balance sheet and liquidity remained robust, with total debt of $3,056 million and total liquidity of approximately $2.4 billion as of December 31, 2023. The company's share repurchase activities remained active, with approximately $1.1 billion remaining under its authorization as of February 15, 2024.
The slight premarket stock movement suggests investors may be taking a cautious approach despite the positive earnings report.
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