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Jun 30, 2023

Hyatt Q2 2023 Earnings Report

Hyatt's Q2 2023 results were reported, demonstrating growth in key metrics.

Key Takeaways

Hyatt reported a net income of $68 million, with Adjusted EBITDA reaching $273 million. System-wide RevPAR increased by 15.0%, and net rooms growth was approximately 6.9%. The company updated its full-year RevPAR outlook and expanded its pipeline to 119,000 rooms.

Net income was $68 million, compared to $206 million in Q2 2022, which included $251 million in gains from real estate sales.

Adjusted EBITDA increased to $273 million, up from $255 million in the prior year.

System-wide RevPAR rose by 15.0% compared to 2022.

Net Rooms Growth reached approximately 6.9%.

Total Revenue
$1.71B
Previous year: $1.48B
+15.0%
EPS
$0.82
Previous year: $0.46
+78.3%
Net Rooms Growth
6.9%
Previous year: 19%
-63.7%
Adjusted EBITDA
$273M
Previous year: $255M
+7.1%
System-wide RevPAR
15%
Previous year: 130.16%
-88.5%
Gross Profit
$348M
Previous year: $351M
-0.9%
Cash and Equivalents
$882M
Previous year: $1.43B
-38.2%
Free Cash Flow
$96M
Previous year: $142M
-32.4%
Total Assets
$12.6B
Previous year: $12.7B
-0.5%

Hyatt

Hyatt

Hyatt Revenue by Segment

Forward Guidance

The Company is providing the following guidance for full year 2023: System-Wide RevPAR 14% to 16% Net Rooms Growth Approx. 6.0% Net Income Approx. $215 Adjusted EBITDA $1,020 - $1,070 Net Deferrals Approx. $120 Net Financed Contracts Approx. $60 Total Adjusted SG&A $485 - $495 One-Time Integration Costs Approx. $20 Free Cash Flow Approx. $550 Capital Returns to Shareholders Approx. $500

Positive Outlook

  • System-Wide RevPAR: 14% to 16%
  • Net Rooms Growth: Approx. 6.0%
  • Net Income: Approx. $215 million
  • Adjusted EBITDA: $1,020 - $1,070 million
  • Free Cash Flow: Approx. $550 million

Challenges Ahead

  • Total Adjusted SG&A: $485 - $495 million
  • One-Time Integration Costs: Approx. $20 million
  • Net Deferrals: Approx. $120 million
  • Net Financed Contracts: Approx. $60 million
  • Capital Returns to Shareholders: Approx. $500 million
  • No disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2023 Outlook

Revenue & Expenses

Visualization of income flow from segment revenue to net income